Frequently Asked Questions

Frequently Asked Questions Brazil Type 5 2013 Cisco Systems Ltd. All rights reserved November 2013

Table of Contents Cisco Strategy 3 Legal & Sales Agreements 3 Customer and Partner Impacts 4 Products and Services 4 Pricing 5 Service Sales 5 Purchasing 5 Manufacturing, Fulfillment and Logistics 6 Warranty 6 Payment 6 2

Brazil Type 5 Cisco Strategy 1 Q: What is Cisco Brazil? A: Cisco Brazil is a wholly owned Brazilian subsidiary of Cisco Systems, Inc., which will sell a range of locally manufactured Cisco products. It will also be able to sell to Cisco's Brazilian partners and customers. The remaining product range and Software Subscriptions will continue to be sold by Cisco Systems Inc. The introduction of Cisco Brazil will not change Cisco's go-to-market strategy. 2 Q: When will Cisco Brazil go live? A: Cisco Brazil (Cisco Comércio e Serviços de Hardware e Software do Brasil Ltd) is due to go live on 8 December, 2013. 3 Q: What is the scope of Cisco Brazil? A: From December 8th 2013, customers and partners in Brazil will be able to purchase a range of locally manufactured products from Cisco Brazil, along with purchasing the remaining products from Cisco Systems Inc. Local manufacturing will also deliver a more streamlined ordering process, reduced cycle times and faster speed to market. 4 Q: Will the range of locally manufactured products be expanded in the future? Legal & Sales Agreements 5 Q: Will there be any changes to Legal Sale Agreements due to the introduction of Cisco Brazil? A: Yes: Partners and direct customer will need to accept an addendum to the Cisco Systems Inc legal sales agreement to include Cisco Brazil. 1-Tier Partners will need to accept a new Internet Commerce Agreement (ICA) that will include Cisco Brazil. Cisco will extend its Indirect Channel Partners (ICPs) to include Cisco Brazil beginning on December 8, 2013. Accordingly, ICPs holding Indirect Channel Partner Agreements (ICPAs) with Cisco Inc. will have their respective ICPAs extended to Cisco Brazil. All legal sales agreements will be in English but, if required, will be translated into Portuguese and made available in both languages. 3

6 Q: When will the new ICAs and ICPAs be available? A: In order to transact with Cisco Brazil, you are required to sign an updated Internet Commerce Agreement (ICA) through your Brazil legal entity. You must accept this agreement before you can place any orders with Cisco Brazil on and after 8 December, 2013. Customer and Partner Impacts 7 Q: What will change for customers and partners doing business with Cisco Brazil? A: Partners and customers in Brazil with an active Brazil Bill-To ID (BID) who buy or sell locally manufactured products will transition that part of their Cisco business to Cisco Brazil. Partners and customers located outside of Brazil but who intend to sell locally manufactured products into Brazil will require a new Brazil BID. New sales agreements with direct customers, partners, and distributors will be created for Cisco Brazil. Affected partners and customers will be contacted by their Cisco Account representative. 8 Q: What is required to be able to purchase from Cisco Brazil? A: To be able to conduct business with Cisco Brazil and place an order, you will require: Local presence in Brazil Local Legal Sales Agreement Internet Commerce Agreement (ICA) via Click to Accept Brazil Bill-to ID (BID) with all established local requirements (one BID per Brazilian state where product will be shipped) Products and Services 9 Q: If I purchase products from Cisco Brazil, can I ship those products to another country? A: No. 10 Q: Will there be any changes to service orders (contracts) when Cisco Brazil goes live? Prior to go live, service orders will be migrated to Cisco Brazil. Global service orders (with service sites in multiple countries including Brazil) will be split over two service orders (contracts) to create a single Cisco Brazil order for service sites in Brazil only. 11 Q: What product programs will be available in Brazil? A: CSPP is in scope and this will be available for Cisco Systems INC and Cisco Brazil. Partner product programs such as VIP and OIP will not be available on Day 1 but analysis is underway to bring them into scope early next year. 4

Pricing 12 Q: Will there be a product price list or currency change with Cisco Brazil? There will be a new price list for the locally manufactured products in Reais for Cisco Brazil. In the case of a price change, you will be notified 30 days in advance. Service Sales 13 Q: How will Services renewals be handled? A: All renewals for Services (excluding Software Subscriptions) with local install-site/performed-at locations will be quoted, managed and sold by Cisco Brazil after go live on 8 December 2013. 14 Q: Will partner branded, Cisco branded, and co-branded services sales be permitted through Cisco Brazil? Purchasing 15 Q: Will Cisco Brazil continue to invoice separately for products and services? 16 Q: When ordering from Cisco Brazil, what currency should Purchase Orders be in? A: All Cisco Brazil Purchase Orders will appear in Brazilian Reais. 17 Q: Can I use the Bill-to IDs (BIDs) and Ship-to IDs (SIDs) that are used with Cisco Systems, Inc. today? A: The Cisco Systems, Inc. BIDs/SIDs will remain valid to track orders placed with Cisco Systems, Inc. For all orders placed with Cisco Brazil, a Brazil BID and SID will be required for pricing, quoting, ordering and invoicing through Cisco Brazil. There will be two sets of IDs, one for Brazil and one for Cisco Systems, Inc. 18 Q: Will the BID be the same for products and services? A: You have the option of having a single BID for both products and services, or if required, you can have a separate BID for each. 5

19 Q: Can I order standalone services from Cisco Brazil? 20 Q: Can I order non-locally manufactured products from Cisco Brazil? A: No. Manufacturing, Fulfillment and Logistics 21 Q: Will there be any changes to invoices? Cisco Brazil will produce invoices (Nota Fiscal) for locally manufactured products in compliance with local requirements. Non locally manufactured products purchased through Cisco, Inc will continue to be invoiced by Cisco, Inc. 22 Q: What are the delivery options for Cisco Brazil? A: All deliveries are Partner routed (opt-out). 23 Q: Can partners select a customer site as a ship-to, instead of their own address? A: No, deliveries are only possible to the ship-to addresses associated with the bill-to address. 24 Q: Are there any changes to Services invoices? Services will be subject to a different fiscal invoice (Nota Fiscal) format (regulated by the municipal authorities). Warranty 25 Q: Will the warranty for products remain the same when operating under Cisco Brazil? A: Standard Warranty will be offered for products sold by Cisco Brazil, in line with standard warranties for the same product families offered for Cisco Systems, Inc. products. Payment 26 Q: Will my payment terms for Cisco Brazil be the same as Cisco Systems, Inc.? 6

27 Q: How will payments be remitted? A: All payments must be remitted in alignment with the Sales Invoice. 28 Q: What currency will payments to Cisco Brazil be made in? A: Payments must be made in Brazilian Reais. 29 Q: What payment method will be accepted for products and services? A: Partners will be able to process payment via wire transfer and Boleto. 7