XACTLY PARTNER PROGRAM GUIDE

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1 XACTLY PARTNER PROGRAM GUIDE 2014

2 PARTNERING WITH XACTLY The targeted nature of our partner program enables us to help partners better capture the momentum of the growing incentive compensation management marketplace. Partnering with Xactly creates opportunities to promote, build, and deliver the benefits of Incentive Compensation solutions to customers. Leveraging partnerships with consulting and advisory firms, implementation and system integrators, and technology vendors, Xactly and its partners compliment their collective strengths to offer complete solutions that include incentive compensation through measured performance and improve profitability. This helps customers achieve a significant return on investment within a short period of time. SOME OF XACTLY S EXISTING PARTNERS INCLUDE XACTLY S VALUE PROPOSITION Xactly offers partners the best opportunity to capture the growing demand of Incentive Compensation, to maximize customer s satisfaction with the solutions to their challenges, and adding value to horizontal solutions from technology partners. Knowing partners have an opportunity to align with any market leader, Xactly is the premier choice for a combination of reasons: Our company culture is sales-focused and partner-friendly. We have a defined and tiered partner program. Proven industry track record for value added products. Industry leading multi-tenant SaaS application. XACTLY S GLOBAL PARTNER PROGRAM Xactly s Global Partner Program is a comprehensive program designed to meet the critical needs and interests of companies that seek to become consulting, advisory, content, or ISV/technology partners with Xactly. The program helps to strengthen our partnerships by collaborative development of business objectives, value proposition, technical value-add, and a proactive approach to business planning and target revenue initiatives. The program further encompasses structured channel initiatives, such as Xactly s partner go-to-market and development support. Having developed a strong ecosystem of partners around the globe has ensured the success of Xactly s customers worldwide. XACTLY PARTNER PROGRAM GUIDE 1

3 PROGRAM STRUCTURE & ACHIEVEMENT LEVELS Xactly provides achievement levels for all partners. Our program uses a four-tier system, providing opportunities to achieve higher levels of partnership by meeting specified program requirements in a designated period of time. The required period of time, associated benefits, and partnership investments are aligned with each partner achievement level. The partnership levels are as follows: AFFILIATE The Affiliate level facilitates new partners to begin their business with Xactly, and enables existing partners to further develop their Xactly business and demonstrate industry expertise. Partners at this level are required to meet minimum program guidelines to establish an ongoing relationship with Xactly. PREFERRED The Preferred level partners have demonstrated a commitment to developing a long-term relationship with Xactly, and are in the process of building a sustainable business around Xactly s products and the incentive compensation management industry. CHANGES TO XACTLY PARTNER PROGRAM Xactly reserves the right to change the requirements and benefits stated in this Global Partner Program Guide. We will make every effort to contact partner members before changes occur. We will also make changes and modifications available on Xactly s Partner Portal. We strongly recommend that partners visit the portal on a regular basis to ensure that they are up-todate on the partner resources. OTHER RELATED PROGRAMS FOR PARTNERS PROGRAM BENEFIT DESCRIPTIONS As members of the Xactly Global Partner Program, participants are eligible to receive a variety of Enablement, Sales, Marketing, and Support benefits. Program benefits are structured to compliment different partnership types and business models, and to help partners successfully take products and services to market. Together, Xactly and its partner community are dedicated to assisting customers in measuring performance and driving business value. These partners are leaders in their domain and/or region, bringing value added expertise to our mutual customers. Partner requirements at this level are higher than the Affiliate level, but also receive additional benefits. PREMIER The Premier level partners are identified as industry leading solutions, and are committed to doing significant business with Xactly. Partners at this level have a track record of success with Xactly, and have established regional leadership with significant industry solutions and value-add. The Premier level also receives additional benefits. ELITE The Elite level is the highest achievement level within the program. An Elite partner has developed a very high degree of business synergy with Xactly, and has significant presence in multiple geographies. Elite Partners are global leaders in providing industry standards and have worldwide coverage. Partners at this level are assigned a named account manager with executive involvement, and enjoy a substantial commitment from Xactly. Partnership at this level is by invitation only. XACTLY PARTNER PROGRAM GUIDE 2

4 ENABLEMENT BENEFITS PRODUCT UPDATES Enablement benefits provide communications and training Every quarter Xactly publishes and distributes Xactly Product updates to partners and posts the updates on the Xactly Partner website, Partner Connections. Partner specific versions are created for relevant partners. The updates inform partners of resources to accelerate joint success. XACTLY S PARTNER PORTAL Xactly s partner-exclusive portal offers a centralized online resource for partner program information, program benefits, marketing and sales tools, and training updates. LISTING ON XACTLY WEB SITE All signed partners are listed under the appropriate partner program and tier in the partner directory section of the Xactly corporate website. SALES AND PRODUCT TRAINING recent product changes, positioning updates, and opportunities. WEB SEMINARS/WEBCASTS On a quarterly basis, Xactly offers a series of web seminars and webcasts on topics that are particularly relevant to our partners. These seminars offer a quick, easy way to enhance knowledge of Xactly products. Web seminar topics typically encompass product overviews, sales training, and product positioning. Web seminar series are announced in the Xactly s Global Partner Newsletter and in other notices. Content from previously held seminars is available on the Xactly partner Web site, Partner Xactly offers training for partners sales and pre-sales people to understand how to identify and structure an opportunity for Connections. Xactly. corporate website. XACTLY PARTNER ADVISORY COUNCIL (PAC) Xactly partners receive percent discounts on instructorled technical training courses respective to their partnership achievement levels. Training courses are offered by Xactly Xactly extends invitations to partners to participate in the Xactly Partner Advisory Council. The PAC is an opportunity for partners to gain insight into the strategic direction of the Xactly Incentive Compensation Solutions. The PAC additionally provides a forum for Xactly partners to assist and provide feedback in determining Education Services. the future direction of Xactly products and solutions. PRODUCT TRAINING DISCOUNT PRODUCT TRAINING ROADMAP A roadmap of training available to the partner will be provided to help partners achieve higher levels in the program. XACTLY PARTNER PROGRAM GUIDE 3

5 MARKETING BENEFITS Marketing benefits offer scalable programs and resources to support go-to-market initiatives and increase market exposure. PUBLIC RELATIONS OPPORTUNITIES Xactly works with partners to maximize opportunities to promote customer wins and joint customer success stories. The guidelines are available on the Xactly partner portal, Partner Connections. XACTLY GLOBAL PARTNER NEWSLETTER Xactly s quarterly global partner newsletter provides timely information on Xactly product releases, partner webcasts and education opportunities, events, and Xactly news. XACTLY PARTNER FORUM The annual Xactly Partner Forum provides partners with an opportunity to learn about Xactly s product direction, development plans, and marketing priority from the company s key business and technology experts. COMPCLOUD XACTLY S ANNUAL GLOBAL CONFERENCE CompCloud is the premier global Incentive Compensation conference of the year. The program gives partners an opportunity to showcase their solutions to a broad base of mutual customers and prospects through exhibiting sponsorships or various other options. The Xactly Partner Solutions Pavilion is available at a specified rate with discounts based on the partnership level. ACCOUNT MANAGEMENT Xactly is committed to having a seamless method of communication to every partner. To ensure prompt attention to all inquiries, a single source of contact will be identified. Depending on the level of partnership, Xactly will provide additional levels of account management and human resources. PARTNER SERVICE CENTER The Partner Service Center consists of professionals with expertise across all partner processes and functions. The Partner Service Center works cross-functionally with the appropriate Xactly organizations to support partners through the services described in this section. For all partners without a designated Account Manager(s), the Partner Service Center serves as the primary point of contact. Xactly Partners may contact the Partner Service Center by sending an to MARKETING AND SALES TEMPLATES Partners can promote Xactly s new products and upgrades to customers and prospects with Xactly s direct marketing templates. Partners can get access to customizable and easy-to-use templates on the Xactly partner portal, Partner Connections. MARKETING TOOLS AND COLLATERAL XACTLY PRODUCT COLLATERAL Partners can access Xactly s collateral pieces to use for mailings, events, sales calls, and other sales and marketing activities. There is no cost to partners for ordering Xactly product collateral, and partners are only responsible for shipping charges. You can order product collateral through the Xactly partner portal. Quantities may be limited on specific pieces. JOINTLY BRANDED COLLATERAL Xactly supports the development of joint collateral with partners at the Preferred achievement level and above. Typically the intention of such collateral is to promote a joint value proposition and designated go-to-market solution to prospects and customers. BROCHURES, DATASHEETS, AND GENERAL MARKETING MATERIALS Most Xactly marketing materials, such as data sheets, brochures, and customer success stories are available on the Xactly partner portal. Printed versions of the collateral can also be ordered via JOINTLY BRANDED CUSTOMER SUCCESS STORIES AND CASE STUDIES Xactly supports the development of joint success stories and/ or case studies with partners as a means to promote a joint industry value proposition and blended product solution(s) to prospective and existing customers. Xactly determines the eligibility for branded success stories and/or case studies on a case-by-case basis. PARTNER PROGRAM LOGO Partners can promote their partnership with Xactly by displaying the Xactly business partner logo on their websites, in addition to advertisements and other marketing materials. The guidelines for the appropriate uses of logos are available on the Xactly partner portal, Partner Connections. XACTLY PARTNER PROGRAM GUIDE 4

6 SELLING BENEFITS Selling benefits are designed to help partners increase market share, source new opportunities, and close business. DEMONSTRATION RESOURCES Partners are enabled to demonstrate Xactly capabilities via a demonstration environment. BUSINESS PLANNING For Affiliate and Preferred partners, a short one page business plan is requested to be completed by the partner and agreed to by Xactly. For Premier and Elite partners, the Partner and Xactly will jointly develop value propositions. The mutual plan will define the uniqueness of the solution(s) and communicate how this differentiation plays in the marketplace, as well as demonstrate the return on investment that it brings to customers. Premier and Elite Partners will work with assigned Partner Alliance Managers to jointly develop business plans with quarterly milestones. SUCCESS COMMUNICATIONS Success communications are designed to promote partner wins to the Xactly Global Sales organization. These communications reinforce a partner s industry expertise and successful customer relationship. Partners may contact their designated Partner Contact or Partner Alliance Manager for additional information and qualification guidelines. SUPPORT BENEFITS PARTNER SUPPORT AND SALES SERVICES Partner-readiness is paramount to success, and Xactly is prepared to support its partners as they learn about the Xactly family of products. The partner support program works globally and mirrors Xactly s core values with a common framework for conducting ourselves internally and externally. Regardless of who the partner or customer is, everyone is treated with C.A.R.E. The partner support program is of the highest quality, and is consistent with the Partner Agreement and requirements to sell, implement, and support Xactly s platform and extensible solutions successfully. PRODUCT TECHNICAL SUPPORT You can find information on partner solution-support options at the Xactly partner portal and on the Xactly web site. To arrange for these additional options, please contact APPLICATION PROCESS Companies considering a partnership with Xactly should review the Global Partner Program Guide. If interested in moving forward complete the Partner Application and submit at xactlycorp.com. The Xactly Partner Program team will review a prospective partner s application and respond via within 15 business days thereafter as to whether the partner has been accepted into the Xactly Global Partner Program. Following full execution of the applicable agreements, the partner will be eligible to receive the corresponding benefits for its partner category and achievement level. RENEWAL PROCESS Xactly, when applicable, sends renewal letters 30 days prior to the expiration of the Partnership Agreement. The letter provides instructions for the renewal process and to avoid interruption of partner benefits. XACTLY PARTNER PROGRAM GUIDE 5

7 GLOBAL PARTNER BENEFITS To support partners in the most effective way, Xactly Global Partner Program is tailored to fit each partner type at the Affiliate, Preferred, Premier, and Elite partnership achievement levels. The following charts include several symbols to indicate the accessibility of benefits and the requirement standards for each partner type and achievement level. REQUIREMENTS AFFILIATE PREFERRED PREMIER ELITE Signed Xactly Partner Agreement ARR Target $100,000 USD $250,000 USD $500,000 USD $1,000,000 USD Account Manager or Contact Partner Contact Partner Alliance Manager Partner Alliance Manager Joint Business Plan and Go-to-Market Strategy 0 0 Access to Partner Portal ENABLEMENT BENEFITS AFFILIATE PREFERRED PREMIER ELITE Listing on Xactly Website Partner Training Roadmap Partner Web Seminars/Webcasts Xactly Partner Newsletter Access to Partner Portal MARKET BENEFITS AFFILIATE PREFERRED PREMIER ELITE Public Relations Activities 0 Partner-initiated Joint Joint Xactly User Conference 0 Xactly User Conference Sponsorship Discount 2 free registered attendee (assuming at least lowest sponsorship) 3 free registered attendee (assuming at least mid-level sponsorship) 4 free registered attendee (assuming top sponsorship) 0 10% 15% 15% Alliance Manager Only Only Shared Logos and back links Marketing and Sales Templates Marketing Tools and Collateral SELLING BENEFITS AFFILIATE PREFERRED PREMIER ELITE Slides that show demo Web Access Web Access Web Access Web Access Modeling Available 0 0 Eligible Joint Business Plan 0 0 Short Business Plan from Partner (from provided) 0 0 Deal Flash Bulletins Access to Margin to referrals/influencers based on ARR 10% 12% 15% 20% XACTLY PARTNER PROGRAM GUIDE 6

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