1. Partner Assistance Reward (PAR)
PROGRAM APPENDIX
1. Overview
Red Hat’s Partner Assistance Reward Program (“Reward Program”) is designed to recognize the value delivered by certain Partners
in support of new business sales of Red Hat offerings and provides program rewards for new business opportunities registered
pursuant to this Program Appendix. To participate in this Program, Partner must be a current authorized Red Hat Partner, and must be
invited to this Program by Red Hat. In addition, Partner must actively participate in the creation, cultivation and closure of new
opportunities in order to qualify for the program rewards. Capitalized terms not defined herein are defined in the Agreement, Program
Appendix and/or Program Guide.
2. New Opportunities and PAR Rewards
Subject to the requirements set forth in this Program Appendix, for each new sales opportunity that Partner generates for Red Hat
(“New Opportunity”) Partner may be eligible for a Program Reward specified in the table below (“PAR Reward”). If the New
Opportunity qualifies for a PAR Reward, Red Hat will provide such Reward in the form of market development funds (“MDF ”) as
described in Attachment A.
New Opportunities PAR Reward*
RHEL 6%
Other Red Hat Products 10%
* The percentages are based on actual customer revenue received by Red Hat based on approved registered opportunities
brought in accordance with the terms of this Reward Program.
2.1 Eligible Offerings
The Red Hat offerings that are eligible for PAR Rewards (“Eligible Offerings”) consist of the following: Red Hat Enterprise Linux,
Red Hat JBoss Middleware, Red Hat Storage, Red Hat Network, and Red Hat's Cloud Computing Products. Eligible Offerings do not
include Global Professional Services, Global Learning Services, Global Engineerings Services, Technical Account Management
Services, or any opportunity that is an L3 SKU.
2.2 Minimum Requirements
In order to qualify for a PAR Reward, the New Opportunity must represent a value of at least ten-thousand US Dollars (USD 10,000),
and may not include any sales to (a) federal, state, local government entities or educational accounts, (b) channel partners including
but not limited to embedded partners, or (c) other entities that are not End Users.
2.3 Evaluation
Red Hat and Partner will jointly review a New Opportunity and possible qualification for a PAR Reward. Such review will be done on
the basis of sales activities typically occuring during the sales process including:
• Opportunity Plan created & reviewed with the Red Hat account team
• Presentation/Briefing(s) held with End User Opportunity Power Sponsor
• Evaluation Plan agreed to by Power Sponsor
• Establishment of a Proof-of-Concept (POC)
• Partner participation in creation of Request for Proposal (RFP) and/or Bid response
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2. 3. PAR Registration and PAR Rewards
Partner may request a PAR Reward for a New Opportunity by registering the New Opportunity in Red Hat’s Partner Portal
(www.redhat.com/partners) (“PAR Registration”) and entering the required information, including End User information and the
considered Red Hat Products with sizing. Upon receipt of the PAR Registration, Red Hat will determine at its sole discretion whether
the New Opportunity is a unique opportunity within Red Hat’s Salesforce CRM System that qualifies for the requested PAR Reward.
Such determination will be made in light of the added value that Red Hat expects the New Opportunity to represent. If the Eligible
Products are not purchased within two hundred and seventy (270) days as of the PAR Registration, the PAR Registration will expire
upon expiration of that term unless otherwise agreed in writing.
4. Term and Termination
4.1 Term. This Program Appendix including Attachment A, begins on the Effective Date and continues until the expiration or
termination of the Agreement, unless terminated in accordance with Section 4.2.
4.2 Termination by Red Hat or Partner. Red Hat or Partner may (without prejudice to any other right or remedy) terminate this
Partner Assistance Reward Program (and Partner’s participation in such Program) for any reason at any time upon thirty (30) days
prior notice in writing to the other Party.
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3. ATTACHMENT A
MARKET DEVELOPMENT FUNDS
1. MDF Structure.
For the Term of, and subject to the Reward Program, including this Attachment A, Red Hat will provide one or more
rewards in the form of MDF to the Partner based on Partner’s proof of performance for qualified expenses. The
relevant reward(s) will be applied to an MDF account set up for the Partner from which and MDF reimbursement may
be requested.
2. MDF Reimbursement Request, Proof of Performance, and Payment
2.1 MDF Reimbursement Request: The Partner may request a reimbursement from the PAR MDF account for a qualified
activity concerning Red Hat Products. The Partner will submit the reimbursement request through the Partner Portal
along with proof of performance documentation. Examples of possible qualified activities include:
a) Red Hat Education;
b) Red Hat Professional Services;
c) Customer facing events that promote Red Hat products;
d) Attendance at events such as Red Hat’s Summit;
e) Proof of Concept expenses; and
f) Marketing Campaigns promoting Red Hat products.
2.2 Proof of Performance. Partner will provide relevant documentation supporting any payment request. Red Hat
reserves the right to deny any claims where required documentation for reimbursement is not available or is
incomplete. All expense reimbursement requests must be submitted within ninety (90) days of date expense is
incurred. Red Hat will review the MDF reimbursement amount and advise Partner whether the MDF is approved. The
parties will resolve any disputed amounts in good faith and Red Hat will have the final determination of any dispute.
2.3 Payment. Once a request for MDF has been approved by Red Hat in writing, Partner will submit an invoice to Red Hat
in the amount of the approved MDF. Red Hat will pay the MDF reimbursement amount to Partner within forty-five (45)
days of Red Hat’s receipt of Partner’s proof of performance documentation and the relevant invoice.
2.4 Spending of the MDF and expiration. Any amounts of accrued MDF that remain unallocated at the end of each
Quarter will be carried forward and applied to subsequent quarterly MDF amounts. The term “Quarter” refers to Red
Hat’s fiscal calendar quarters. Red Hat’s first Quarter begins on March 1st and ends on May 31st of each year. MDF
amounts not consumed within twelve (12) months of their initial accrual will expire. The twelve (12) months is calculated
beginning on the 1st
day of the month following the month the funds were applied.
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