This document outlines an agenda for discussing MDF and co-op programs. It defines MDF and co-op funds, explains why vendors offer them and why partners do not fully utilize the funds. It provides best practices for effective MDF/co-op programs, such as streamlining processes, improving communication and measuring effectiveness. Finally, it introduces Hawkeye's channelMDF solution for maximizing fund utilization through automated workflows and integration capabilities.

1. 18 November 2009 Vaughn Aust William Gilsing The Basics of MDF & Co-Op Programs

2. Agenda Why joint marketing and sales campaigns? Why do vendors fund partner marketing and sales campaigns? What are MDF and co-op funds—and how do they differ? What are best practices in MDF/co-op programs? Why do partners not fully utilize MDF and/or co-op funds? How can you measure the effectiveness of MDF/co-op programs? What are the best practices of an effective MDF/co-op program? Why hawkeye’s channelMDF solution? Why the hawkeye channelMDF solution? What tools are available to promote the channelMDF solution? 2 Agenda © 2009 hawkeye, all rights reserved.

3. Why do vendors fund partner marketing and sales campaigns? Joint campaigns grow business through the channel 3 Why joint marketing and sales campaigns? © 2009 hawkeye, all rights reserved. MDF/Co-Op Spend Nearly 60% of vendors spend at least 5% of their marketing budgets on MDF/co-op programs Partners contribute 4% of their marketing budgets to MDF/co-op programs

4. What are MDF and co-op funds—and how do they differ? Funds differ by partner type and objective Market Development Funds (MDF): distributed to partners in advance of sales Ideal for partners with a services business model who “push” products through channel; specify brand, develop markets, and grow business Co-op (Cooperative) Funds: distributed to partners based on % of trailing sales Ideal for partners who fulfill demand and “pull” products through channel; do not specify brand or sell services © 2009 hawkeye, all rights reserved. Why joint marketing and sales campaigns? Service Partners Consult, Design, Implement PUSH ABILITY Mixed Model Transactions + Services “VAR” Fulfillment Partners Transaction, Volume PULL REQUIREMENT From a legal standpoint, vendors must account for the use of funds and abide by anti-trust and other legislation under the Fair Trade Practices Act (FASB) and Robinson-Patman Act. Discrimination may result in 3x damage penalties. 4

5. Why do channel partners not fully utilize MDF/co-op funds? By some estimates, as much as 50% of all potential funds go unused 5 What are best practices in MDF/co-op funds? © 2009 hawkeye, all rights reserved. Why do funds go unused? Unfamiliarity/unaware Complexities, administrative burdens Processes that do not engender trust Long delays in approvals and payment What do partners want in MDF/co-op programs? Clear processes with simple rules Speedy payments— 30 days or less Online status/tracking and updates Pay claims in cash, not credit Greater flexibility for activities— trust the partner to know their customers and how to market to them Vertical-friendly options Solution-friendly options Most partners are involved in more than one program and some in as many as a dozen; with each program, the administrative burden grows. Partners want to easily apply for funds—and receive payments quickly “Simplifying the tool is the best way. I suggest having someone who knows nothing about marketing or co-op try to work the tool and see what difficulty that person has.” –Partner

6. How can you measure the effectiveness of MDF/co-op programs? Use solid, consistent metrics to measure performance 6 © 2009 hawkeye, all rights reserved. What are best practices in MDF/co-op funds?

8. What are best practices in MDF/co-op programs? 8 © 2009 hawkeye, all rights reserved. Sell the program—to the field and partners alike Engage channel reps in the process from the start Demonstrate the value Increase adoption with training, education, incentives Proactive, timely, ongoing communication Close the loop Require that partners estimate ROI when requesting approval for projects Map factors to activities and use consistent values to facilitate reporting—drop-down and numerical values Requires that partners review and amend ROI estimates as a part of the claiming process What are best practices in MDF/co-op funds?

9. Why the hawkeye channelMDF solution? Maximize fund utilization—and partner satisfaction 9 © 2009 hawkeye, all rights reserved. Easily manage funds and approve/deny requests Highly flexible, automated workflow Online submission and management Speed time-to-payment Electronic funds distribution Simplified compliance with tax and legal regulations Easily track and measure program metrics Single view of program activity status and reports Complete, visible audit trail through integration of all functions—Finance, CAM, Partner, and Administrator Quickly deploy the solution—worldwide Integration with your existing systems Multi-languages, multi-currencies, local business rules Why the hawkeye channelMDF solution? Powered by hawkeye’s proven channelconduit platform

10. What tools are available to promote the channelMDF solution? Integrated tools to generate awareness and demand © 2009 hawkeye, all rights reserved. Website Data Sheet White Paper Channel Fact Sheet Why the hawkeye channelMDF solution? … With more on the way! 10

11. THANK YOU © 2009 hawkeye, all rights reserved.