XCALLIBRE Partnership Models

1. XCALLIBRE Partnership Models

2. Challenge Challenge: How to… • Prevent price and value erosion in the market, • Increase brand strength & awareness, • Increase revenue and market share, …whilst still promoting XCALLIBRE and partner profitability, partner competitiveness and joint sustainability.

3. Recommendations & Benefits • Proposal • Agents and Service Provider programs should be implemented • Xcallibre will contract directly with accredited service providers • Agents shall be remunerated by the Service Provider at their discretion • Recommend and Publish a list or end price for subscriptions and transactions to be set by Xcallibre • Benefits • To ensure Brand, Price and Value consistency across the industry • Partnership status comes with discount (and other) benefits. • Dilute work load of Xcallibre • A recommended price will ensure that competition is based on value selling and not price. Price competitiveness is not sustainable in the long term.

4. Definitions of the Distribution Channels • Network Provider – Xcallibre • Xcallibre will provide the backbone services for the entire digital pen technology process. • Our key focus will be on the ongoing development of the technology as well as the marketing and branding to support the distribution channel. • Xcallibre will build, maintain and expand our infrastructure as the demand for the digital pen technology increases. • We will be responsible for setting the recommended tariff to the market and will also act as a service provider. • Xcallibre is responsible for its own network, sales support via our service providers, marketing and customer service. • All these services listed will fall under the Xcallibre brand.

5. Definitions of the Distribution Channels • Service Providers • A service provider is any registered company or cc that provides Xcallibre Solutions to its clients directly or via registered agents. • Agents will only be contracted via accredited service providers who in turn are contracted to Xcallibre. • Accredited Service Providers will be responsible to URA, Deployment and training, client presentations and the management of its agents. • Accredited Service Providers will serve as an extension of the Xcallibre brand and its services.

6. Definitions of the Distribution Channels • Agents • An agent will serve only as a sales conduit to the client. • They will be required to prospect and qualify potential clients and establish a need for Xcallibre solutions in their business. • Agents will be required to facilitate the process of initiating and developing a relationship between the client and Xcallibre. • Contracts will be between the client and Xcallibre and NOT between the agent and client. • Agents will fall under the responsibilities of the service provider.

7. Definitions of the Distribution Channels • Clients • All clients are the end users of Xcallibre Solutions and will be contracted to Xcallibre or service providers. • No contractual obligation will exist between client and agent. • Service Level Agreements will be between clients and Xcallibre and Xcallibre will set Service Level Agreements with accredited service providers.

8. Proposed Partnership Models Network Provider/Service Provider XCallibre Xcallibre Service Provider Service Providers Service Providers Agents Agents Agents Agents Agents Clients

9. Network Provider – Xcallibre • High level presentations/quotes - Assistance will be provided to agents dealing with large corporate presentations or boardroom level negotiations • Brand development - Includes all advertising, media coverage and brand strategies • Project management - Xcallibre or an accredited service provider will provide the necessary support on each project • Marketing - All marketing material and supporting documents will be supplied to the agent. This information will also be available online • Train the trainer - Full training and accreditation will be given to service providers who in turn will provide training to the agents • Deployment - Xcallibre or accredited service provider will supply all hardware requirements and provide onsite training and support to client for the duration of the project

10. Network Provider - XCallibre • Support - Call centre support to service provider, agent and client will be provided , including onsite support agents • R & D - Service Providers and agents will be informed of any technological breakthroughs • Billing System - Itimised billing for clients • System integration - Xcallibre solutions to be integrated with clients existing IT platforms • Form enablement - Design and programming of every field in the form and adding of dot pattern will be done by XCallibre • Hardware / Licensing - All hardware and licensing of products will be done via Xcallibre • Hosting/Forms processing Solution - Development, hosting and support on the Xcallibre forms processing solution and related technologies. • Escalated network queries - All major faults on the clients to be referred to the network provider for resolution

11. Service Provider • Selecting & recruiting agents • The Service provider is required to interview and contract with potential agents • Training to agents/clients • - Full orientation and training is to be carried out by the service provider. • End user training and deployment • Full onsite training to the client • Project Management • - Oversee the entire project from start to end • Account management • - Oversee billing queries from client • 1st line support to agents/clients • Queries from agents and 1st escalation from call centre • Bill collection - Ensuring the all billing milestones on each project is adhered to by the client.

12. Service Provider • Relationship building • To ensure ongoing and further developing relationships with the client to expand project in other areas of his business. • Micro-marketing • Seeking local channel mediums to expand the Xcallibre brand eg. Local trade shows, local news publications, industry specific, etc. • Quotes • To assist an agent in preparing a full quotation to the client. • Remuneration • - Xcallibre will pay all approved commissions to the accredited Service providers only.

13. Agents • Prospecting - Always looking for prospective clients for Xcallibre. • Fact finding - Establishing the need of the client at the initial appointment • Pre-screening of client – qualify client - Ensure that this is a client that meets all of Xcallibre’s internal policies • Booking of appointments - Agent is required to ensure that all appointments are confirmed in advance • Presentations - To do initial presentation to the client. Xcallibre will assist agent with high level presentations. • Follow ups - To keep track of all pipeline business • Facilitate contract signing - An agent is also required to get all the paperwork and supporting documents from each client before starting a project • Remuneration • - Agents will receive all commissions earned from their Service Provider

14. Service Provider Remuneration Model

15. Remuneration structure for XcallibreService Providers to Agents

16. Proposed Cost of Subscriptions & Enablement • Subscriptions (Minimum 5 Pens & Minimum 50 transactions per user per month) • Three models for the usage of the Pens exists, the costs include • (Logitech IO2 Pen, Anoto & Vision Objects Runtime licences, extended warranty*, 24x7 call centre, shipping and insurance. Mobile phones and sim cards can be provided if required*) • 1. Outright purchase - Quote to be provided on request and based on volumes. • 2. Monthly lease – R450/pm • 3. 24 Month contract – R350/pm – Client owns pens & licences • Form Enablement • - Forms enablement is a once of cost and is approximately R10 000 for the first A4 page and then approximately R2000 for each subsequent page. • User requirement analysis • - This is based on hourly rates @ R450/hr • Deployment & Training • - This is based on hourly rates @ R450/hr

17. Proposed Cost of Transactions