Licensing Overview August 2003

© 2002 Novell Inc, Confidential & Proprietary Single Base Agreement

© 2002 Novell Inc, Confidential & Proprietary Uniform Agreement Structure VLA / CLA / MLA all use the same BASE AGREEMENT –Core agreement terms identical –Allows for easier transition between programs Additional options and requirements stack onto identical base terms –VLA –Base Agreement –No signature necessary –CLA –Base Agreement plus self audit/audit terms –Signed contract –MLA –Base agreement plus self audit / audit terms –Signed contract –Maintenance

© 2002 Novell Inc, Confidential & Proprietary Agreement Term All agreements have a two-year term Each term divided into two twelve-month annual periods Example: Agreement Start June 2002 End of First Annual Period June 2003 End of Term June 2004

© 2002 Novell Inc, Confidential & Proprietary Renewal CLA and MLA automatically renew at the end of each term for additional two-year term Can be terminated with written notification prior to end of any term Even through renewal takes place, term still ends for purposes of price protection, Upgrade Protection, etc. VLA may renew by simply placing a new order

© 2002 Novell Inc, Confidential & Proprietary Membership Table

© 2002 Novell Inc, Confidential & Proprietary Upgrade Protection

© 2002 Novell Inc, Confidential & Proprietary VLA and CLA Upgrade Protection Access to the latest Novell technology Lowers total cost of software ownership Provides upgrades to future versions of products during coverage period Optional for VLA and CLA purchase Bundled with technical support and required for MLA purchase; termed “MLA Maintenance”

© 2002 Novell Inc, Confidential & Proprietary Purchase either option any time Full-Term less expensive than purchasing Annual twice Full-Term Upgrade Protection Annual Full-Term coverage lasts from when it is purchased until the end of the current term Annual coverage lasts from when it is purchased until the end of the current annual period Start of Agreement End of first Annual Period End of Term Annual First 12 monthsLast 12 months VLA and CLA Upgrade Protection

© 2002 Novell Inc, Confidential & Proprietary VLA and CLA Upgrade Protection Available for purchase… On a per-product basis On new licenses purchased through licensing program On installed base of current licenses –Upgrade first if necessary Purchase applies toward membership level After it is purchased for a product, all licenses of the product purchased through the program should include this coverage

© 2002 Novell Inc, Confidential & Proprietary Compare: Full-Term Upgrade Protection costs less than the price of an upgrade! Upgrade Protection vs. Upgrades

© 2002 Novell Inc, Confidential & Proprietary MLA Maintenance

© 2002 Novell Inc, Confidential & Proprietary MLA Maintenance Available only in the MLA Maintenance = Upgrade Protection + technical support Bundled together in one offering/part # Provides the right to install and use upgrades of a product and technical support Required for purchase with all Novell licenses

© 2002 Novell Inc, Confidential & Proprietary Maintenance Proration Initially, Maintenance is purchased annually On follow-up orders, Maintenance may be prorated Divide annual price by 12 to get monthly price Multiply monthly price by the number of months remaining in current annual period

© 2002 Novell Inc, Confidential & Proprietary Miscellaneous Benefits

© 2002 Novell Inc, Confidential & Proprietary MLA Price Protection MLA price protection locks in pricing for the current term (“resets” upon Term renewal) Price List at renewal month locked in Applies to both license and maintenance purchases Does not apply to promotional or exception- based pricing

© 2002 Novell Inc, Confidential & Proprietary Media Media purchased separately from licenses Distributors can stock media CLA and MLA NetWare media allows open installation up to the number of licenses owned (depending on country) CLA and MLA No Charge Option One free electronic media for products on orders of 500 points /$5,000 USD or more Reseller must put media for $0 on purchase order Any additional are purchased for 3.5 points (US$35) or 1.5 points (US$15)

© 2002 Novell Inc, Confidential & Proprietary Additional CLA and MLA benefits Novell Software Evaluation Library & Support Connection One free annual subscription of each for Prime Customer of contract (the first to sign) Subscription maintained at no charge for customers who purchase at least 2,500 points / $25,000 per year Additional subscriptions at 49.5 points or US$495 (before discount) Novell DeveloperNet CLA/MLA customers receive membership discount

© 2002 Novell Inc, Confidential & Proprietary Additional CLA and MLA benefits Premium Service technical support One free subscription to Novell Support Connection per contract VLA and CLA customers receive 5% discount MLA customers receive 10% discount Novell Consulting CLA customers receive 5% discount MLA customers receive 10% discount