INLAND BUSINESS SYSTEMS 1500 North Market Blvd. Sacramento, Ca. 95834

1. Validation and Findings Designed specifically for: INLAND BUSINESS SYSTEMS 1500 North Market Blvd. Sacramento, Ca. 95834 Email: azhivago@igoinland.com

2. June 8, 2012 Mare Island Technology 3 Positive Place Vallejo , California Dear Mr. Smith, Inland Business Systems, a Xerox Company, specializes in office technology workflow assessment and optimization. We have been committed to our customers since 1977. We are uniquely positioned to help organizations understand true cost breakdown, asset deployment, usage patterns and volumes that result in the co-authored development of sustainable work practices and monitoring of workflows for continuous improvement. We have successfully led companies as well as small organizations - in every industry from healthcare to education - to achieve better financial results, improve operational efficiency and reduce environmental impact. I would like to thank you for allowing us the opportunity to assess your office workflow and learn more about your company culture, mission, challenges and opportunities involved in your organization. We have evaluated your workflow and have developed the following analysis and recommendations that represent the combined efforts and consensus of both Inland Business Systems andMare Island Technology. Our objective is to provide Mare Island Technology with an unsurpassed solution and build a reliable partnership with your company. We hope that the thoroughness of this proposal will confirm the certainty that our partnership will be beneficial for you and Mare Island Technology As you review the following information, please feel free to contact me with any questions. I may be reached at 925.752.3167 or by E-Mail atazhivago@igoinland.com . Thank you again for your time. Sincerely, Annaliza S. Zhivago Senior Major Consultant

3. Inland Business Systems (IBS) will serve as a consulting partner for Mare Island Technology on two initiatives: • Assess Mare Island Technology entire workflow infrastructure. The IBS 360° Assessment will deliver clear visibility into how well your company culture aligns with your business process initiatives. It will also evaluate technology deployment, usage patterns and volumes, overall cost of ownership, general workflow practices, process administration and sustainability practices. • Design and implement a long-term strategy that meets your current objectives as well as your future initiatives and goals. • This proposal was developed to help Mare Island Technology achieve the following goals and future goals: • Build a relationship with one vendor that can handle all hardware, software and other collaboration needs. • Design and implement a long term strategy that addresses your current objectives and long term goals. • Identify all of the direct and indirect costs associated with technology acquisition, operation and maintenance. • To obtain a solution that provides detailed tracking and accounting of normal business printing that will provide information to your banner financial system, for accounting purposes.

4. IBS 360°™ is a revolutionary review that measures the core areas required to achieve true workflow optimization. It is a multi-source, co-authored approach that delivers a comprehensive snapshot, providing clear visibility into a Company’s core business areas. Integrated reporting tools deliver concrete, actionable guidelines for complete alignment between your technology and business process initiatives. Company Culture How well your company culture aligns with your technology investments and business process initiatives Sustainability Practices Key factors have been identified and associated with the overall cost ofownership Technology Deployment The right numbers and right types of assets are in the right locations Process Administration Processes are streamlined and automated according to internal, state and federal requirements Usage Patterns And Volumes Assets are being utilized at or near capacity Workflow Practices How efficient and effectively information flows and communication occurs Overall Cost of Ownership Key factors have been identified and associated with the overall cost ofownership

5. Company Culture • Mare Island Technology invests a significant number of employee hours getting various toner types for multiple printer models, using multiple budgets. • Users have added printers at will and have started to use them as their main print devices resulting in high toner cost, underutilizing the current multi functions that are in place. • Currently Mare Island Technology uses multiple vendors/drivers/models/supplies for various output devices resulting in multiple invoices and points of contact. • Mare Island Technology is paying approximately $43,483.08 a year to their copier and printer fleet. This is not including the cost of HP printer labor and cost of replacing the printer if it cannot be fix.

6. Technology Data Collection Process • All known devices were touched and meter reads were obtained twice by trained IBS staff. • Volumes were accurately measured by device over the time of the assessment and compared against actual invoices to verify accuracy. • Interviews were taken with users where applicable. • Financial data was obtained by auditing purchases.

9. Current Scenario MFD’s (Copiers) TOTAL MONTHLY EXPENSES: $ 3,623.59 • Mare Island Technology currently: • Produces 150,000 total pages per month on KM 1050e black and white. • Produces 8,000 black and white pages and 1500 color pages from Xerox 7675. • Utilize 47 HP printer units deployed consisting of: • 4 color laser jet = produces 1,500 color prints • 43 black and white =produces 25,000 b & w prints • Utilize 4 stand alone fax machine

10. Proposed Solution • Xerox D110, Xerox 7545 with Print Management on 47 HP Printers • Inland Business Systems proposed the following: • Install XEROX D110 to replace KM1050e • Include an offline folder to be utilize by the office • Include 150,000 b &w copies/print per month • 2. Install XEROX 7545 with fax to replace Xerox 7675 • Include 8,000 b & w copies/print per month • Include 1,500 color copies /print per month • 3. Put all 47 HP Printer in Smart Print Program at low cost • Include 25,000 b & w prints • Include 1,500 color prints

11. Xerox Solution will save Mare Island Technology $ 5,362.68 annually!

12. Savings Per Year : $446.89 x 12 = $5,362.68 see pg. 10 Plus additional Savings ---$2,923.59 if equipment will be upgrade in June . 1st Monthly will start in August that will save MIT $2,923.59 for the month of July. This will include no financial obligation to MIT to pay the remaining lease for the current copiers.

13. EDUCATION SOLUTIONS • We offer innovative solutions that enhance the learning experience of students while enabling better management of resources. • Cost Tracking and Access Control • Our solutions make it easy for schools- to recover campus-wide print and copy costs, make printing convenient without compromising security, and encourage responsible printing. • Through our workflow solutions, schools can easily track, analyze or charge for every page output by any student, faculty member, staffer or guest on any desktop printer, network multifunction printer, or walk up copier. School can track the amount and type of output be device to determine how to optimize its device fleet. • Cost Effective Color Printing • Our solid ink technology enables educational institutions to take advantage of high impact color for pennies, often for no more than it costs to print black and white. The unique three-tiered meter plans classify documents based on the actual amount of color used—no more paying for full-low color documents. This provides the best of both worlds greater impact and less cost. • Environmental Sustainability • Solid ink also enables more environmentally responsible printing. • Less waste, non-toxic ink, less packaging requiring less energy to transport, and less energy required by the device, all contribute to reducing a school’s carbon footprint– saving the environment and providing another important lesson to students • . • Increased productivity • Lets user print documents anywhere, anytime. Virtual access to all documents for printing. • Unconscious Connectivity. • Ability to print inside & outside firewalls. • Reduce waste • Allows user to print the latest version at the latest possible moment. • More convenient with USB KIT • Print what you need, were and when you need it. .

15. IBS Contacts