Tier 1 Discounts: Summary of Changes

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Joan Grant
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1 Tier 1 Discounts: Summary of Changes In conjunction with the launch of McAfee s Tiered Pricing Program, we re also simplifying our Tier 1 Discount strategy in order to provide a more usable and consistent pricing framework. The following Associate Tier 1 Discount changes are timed with the release of Tiered Pricing and are effective on the McAfee Price Book when Tiered Pricing is released. There is no change to MSRP Pricing. It is recommended that Distribution review pricing to their resellers to maintain profitability. The following positioning of these price changes to Resellers can be used: In conjunction with Making Tiers Matter, McAfee has adjusted Tier 1 Discounts on select products to further simplify their pricing strategy. As a result, McAfee Resellers and Customers will see a limited number of price changes. This is a onetime price adjustment and will provide a stable and scalable framework moving forward. Summary of Alignment of Tier 1 Discounts In the past, a small number of SKUs had differing Tier 1 Discounts applied. With the launch of Tiered Pricing, McAfee is updating the Tier 1 Discounts on these SKUs to align with the standard Tier 1 Discount for that discount category. Consolidated Tier 1 Discount categories: SaaS License Tier 1 Discounts will be consolidated into the Software License Tier 1 Discount category. USB and Hard Drives will be consolidated into the Hardware Accessory Tier 1 Discount category.

2 McAfee Consulting/Training and McAfee Foundstone Consulting/Training These have been consolidated into one Tier 1 Discount category; the Tier 1 Discount for these SKUs will be 10%. For a few select SKUs, McAfee must continue to maintain unique Tier 1 Discounts. For these types of SKUs, Tier 1 Discounts will fall into two buckets either 10% of MSRP or 0% off, of MSRP. This will be applied to a small number of select SKUs; examples includes Pro Service Travel & Expense SKUs, Focus SKUs, Student Use and McAfee Security Vision. McAfee Tier 1 Discount Categories Software Licenses and SaaS Licenses Hardware Appliances Hardware Support and Software Support for Appliance Licenses Software Support Premium Support Hardware Accessories/USB & Hard Drives Pro Services (Training and Consulting) Timing Associate Tier 1 Discount changes will be implemented in the same quarter in which Tiered Pricing is launched. EMEA (effective July ) Old Tier 1 Discount New Tier 1 Discount Hardware Appliances 35% 30% SaaS 35% 30% Consulting & Training Various 10% LTAM (effective July ) excludes Brazil Old Tier 1 Discount New Tier 1 Discount Hardware Appliances 35% 30% Hardware Support 18% 25% Software Support 30% 25% SaaS 40% 30%

3 India (effective July ) Old Tier 1 Discount New Tier 1 Discount Software 40% 30% Hardware Appliances 40% 30% Hardware Support 20% 25% SW Support 30% 25% SaaS 40% 30% Consulting & Training 15% 10% South East Asia (effective July ) Old Tier 1 Discount New Tier 1 Discount Software 40% 30% Hardware Appliances 40% 30% Hardware Support 25% 25% Software Support 25% 25% SaaS 40% 30% Consulting & Training 15% 10% Products / SKUs that are excluded from Tiered Pricing Worldwide Professional Services (Training and Consulting) Premium Support Focus Passes Security Vision ISafe Student Use USB and Hard Drives Hardware Accessories and Support Multinode, Education Packs and Media Kits Partner NFR and Demo SKUs (Action Pack, Traveling Licenses) EPSCDE-SA Migration SKU All unique deal specific/customer specific SKUs Special Offerings: Telco & MSP SKUs, select SKUs

4 New Channel SKUs Current channel SKUs will not change and represent Associate Level Pricing. Premier and Elite Channel SKUs will be created for all eligible offers. All quotes and orders for Associate Partners should include only Associate Channel SKUs. All quotes and orders for Premier Partners should include only Premier Channel SKUs. All quotes and orders for Elite Partners should include only the Elite Channel SKU. Commercial (Current) Associate Channel SKUs NEW Premier Channel SKUs NEW Elite Channel SKUs A P E EDU/GHE I R L GOV/FED G M T Product / SKU Eligibility varies by GEO Theater India and South East Asia Products/ SKUs that are eligible for standard and nonstandard Tiered Pricing are flagged YES under the Tiered Pricing column on the price book raw data tab. Products/SKUs that are not eligible for Tiered Pricing are flagged NO under the Tiered Pricing column on the price book raw data tab. For India and South East Asia reference to nonstandard tiered pricing relates to pricing McAfee makes available from INSIGHT (discounted end-user pricing). We will be introducing a tiered approach when the new pricebook becomes effective on July 16 for India and South East Asia. The products which are eligible for standard and non-standard Tiered Pricing vary. Distributors India and South East Asia will see some SKUs which have been indicated as being eligible for Tiered pricing, but the same Tier 1 cost at the Associate level applied. This relates to SKUs which are eligible for non-standard Tiered Pricing (within the System Security portfolio) but are not eligible for the additional discount we have made available through the standard Tiered Pricing offer. Product Families System Security Endpoint Suites System Security Anti Malware Point Products System Security Host IPS System Security SaaS (Suites) Endpoint Encryption Emerging Technology Network IPS & NAC Network Threat Response Network Threat Behavior Analysis Firewall Enterprise (includes Crossbeam) Content Security Suites and Web SaaS Web Gateway Gateway Content Security Blade Server Data Protection Suites Data Loss Prevention Endpoint Data Loss Prevention Appliances Risk and Compliance Suites Risk and Compliance SaaS Risk and Vulnerability Management Tiered Pricing Eligible for nonstandard only Eligible for nonstandard only Eligible for nonstandard only

5 Policy Compliance Database Security Security Management File and Application Control Associate, Premier and Elite Tier 1 Discounts EMEA, LTAM, India, South East Asia Tier 1 Discount Category Associate Tier 1 Discount Premier Tier 1 Discount Elite Tier 1 Discount Software Licenses 30% 35% 40% Hardware Appliances 30% 35% 40% Hardware Support (Software Support for Appliance Licenses) 25% 25% 30% Software Support 25% 25% 30% New Price Book Format to Support Tiered Pricing There is no change to the current price book format for countries that will be excluded from Tiered Pricing (China, Brazil, Korea/Taiwan/Vietnam). For countries where Tiered Pricing is being implemented, McAfee has modified the current price book format to enable Distribution to automate the application of Tiered Pricing: New columns have been added for Premier and Elite Channel SKUs and Tier 1 Cost. A new column on the Raw Data tab of the price book called Tiered Pricing has been added; this will have a YES value for SKUs eligible for Tiered Pricing and a NO value for SKUs not eligible for Tiered Pricing. A new column on the Raw Data tab of the price book called Pricing Tier has been added; this will have an Associate, Premier or Elite value to identify adjusted cost as a result of Tiered Pricing. Raw Data Tab Example: Tiered Pricing SKUs will be listed vertically: Price Book Worksheet Example:

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