Item 26 - Agreement with Allied Network Solutions, Inc. for Adobe Software and Subscription

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SOLICITATION # CH16012 Carahsoft's competitors closely monitor this market, and regularly attempt to gain financial and other information about Carahsoft and other competing vendors. Allowing Carahsoft's competitors access to this compilation of financial data by releasing it in response to a public records request will damage Carahsoft's competitive position because it will provide competitors insight into Carahsoft's financial structure, including compensation, overhead costs, rental rates, profit margins and the like. Indeed, allowing insight into compensation may violate individual employees' expectations of privacy. Once competitors have this access and insight, they can use it to undercut Carahsoft in the marketplace, damaging Carahsoft's business with its customers and its suppliers, and inflicting economic hardship upon the Company. For these reasons, Carahsoft does not itself disclose its Audited Financial Data except when required by law to do so. For example, Carahsoft discloses its financial information in filing its periodic tax returns —disclosure of which is prohibited by applicable state and federal law. In this regard, we note that Carahsoft is a privately owned company. Therefore, Carahsoft does not publicly report its financial results to the United States Securities and Exchange Commission. 3. Carahsoft uses reasonable efforts to maintain the secrecy of its Audited Financial Data. The third part of the Utah Uniform Trade Secret Act's test for trade secret treatment is whether the information "...is the subject of efforts that are reasonable under the circumstances to maintain its secrecy." Utah Code § 13-24-2(4)(b). Carahsoft satisfies this test because it takes reasonable steps to maintain the secrecy of its financial information As noted above, Carahsoft is a privately held company and therefore does not report its financial results publically to either its shareholders or the Securities and Exchange Commission. This is in contrast to public companies such as IBM or AT&T who report financial results quarterly as a matter of public record. Even within Carahsoft's business operations itself, Carahsoft's management strictly limits disclosure of this information to a few carefully selected employees, and then only on a "need to know" basis in connection with their work assignments. Indeed, each Carahsoft employee signs a Confidentiality Agreement agreeing not to disclose this information. Conclusion Based on the forgoing, Carahsoft believes it has demonstrated that its Audited Financial Data, Consensus Assessments Initiative Questionnaires, and Cloud Controls Matrix are trade secret as defined in Utah Code § 23- 24-2 . It is a compilation the content of which affords Carahsoft a competitive advantage. Carahsoft's competition cannot readily discern it by proper means. Moreover, Carahsoft itself treats this information as a trade secret even within its own business operations. Should there be a public records request for this information, Carahsoft respectfully requests that the State afford Carahsoft's requested confidential information and documents trade secret protection in accordance with Utah law and deny the request. In the event that the State determines to release the requested confidential data, Carahsoft requests that you notify us promptly so that we may provide further justification for trade secret protection of this confidential data. carahsoft 184 carahsoft