VAR BID - For Partners Focusing on Enterprise Business February 26, 2007

VAR BID - What are the benefits? Allows VAR to use CSC’s net-30 line with Cisco Inc. – Does not impact Credit Line. No cash outlay, improves Cash Flow. CSC pays VAR their margin. Partner credit lines are expanded. Faster funding common. Enterprise Deals ONLY and now this new generation of demo kits – the Local Demo Kit. Local Demo Kits were designed in direct response to the field’s feedback. They wanted quick access to demo kits that were more easily transportable to customer sites. The Local Demo Kit program gives them that and more. First, these kits are smaller and can be transported in the back of a van or SUV. These kits will be impactful in the field because they are so versatile in what they can show to a wide variety of customers. But most importantly, they are readily available for sales teams to use over and over again.

VAR BID - Qualification To Qualify for a VAR BID, a VAR MUST: have a pre-existing, active, Net 30 account with Cisco Inc. (they must be clean and current on their A/R) be a Gold or Silver partner, certified with Cisco Inc. be VALIDATED Validation means that Cisco qualifies the Partner, then sets them up in Market Place. To begin validation, send the full VAR name and address to Leslie Filiault.

VAR BID - Set Up A VAR Bill-to ID is created by Cisco Capital and attached to an existing VAR customer ID. The Cisco Commerce Online Ordering Tool (a.k.a. Market Place) is the application partners use to enter their Cisco orders on-line. Partner employees who are designated to place the orders in Market Place are given user ID’s. Any newly created VAR Bill-to ID is attached to a user ID.

VAR BID - Ordering When placing an order, the Partner-user enters the Partner “net-30” ID to pay Cisco in cash for their order. The Cisco Capital PO number is placed in the PO field in Market Place. Once placed, the order is put on Credit hold until released by Cisco Capital. Shipment will take place as usual. The VAR directs Cisco Capital to pay specific invoices by completing a Pay Proceeds letter.

VAR BID - FAQ Q: May I use progress payments with VAR BID? A: No. The Progress Payment Program may not be used with VAR BID because VAR BID deals with entire invoices, not individual line items. Q: My partner purchases from a distributor. May I use VAR BID for their deals? A: No. VAR BID is for VARs that buy direct from Cisco only. CSC has a separate process for these partners called Assignment of Proceeds. and now this new generation of demo kits – the Local Demo Kit. Local Demo Kits were designed in direct response to the field’s feedback. They wanted quick access to demo kits that were more easily transportable to customer sites. The Local Demo Kit program gives them that and more. First, these kits are smaller and can be transported in the back of a van or SUV. These kits will be impactful in the field because they are so versatile in what they can show to a wide variety of customers. But most importantly, they are readily available for sales teams to use over and over again.