Want to know more about Xerox Supplies for

Want to know more about Xerox® Supplies for non-Xerox® Printers? A guide to answer all of your questions

Let´s answer all of your questions…. • Why do quality standards and manufacturing processes matter so much? • What are the risks of dealing with bargain brands? • I don´t deal in consumables. How should I go about it, and what should be my first steps? • Will my relationship with other OEMs be at risk? As an OEM, what is the position of Xerox® on the matter? • What is the rest of the market doing/thinking? 3

Why do quality standards and manufacturing processes matter so much? 1. Our objective: Peace of Mind for you and your clients 2. Trust our stringent standards for Manufacturing & Testing 3. 100% Worry-Free Printing 4. Commitment to Customers & Ongoing Monitoring 5. Environment, Health & Safety 6. Standards & Accreditations

1. Our objective: Peace of Mind for you and your clients 100% worry free printing & partnership We achieve this by: q Displaying outstanding quality, manufacturing processes and testing protocols q Setting robust processes in the unlikelihood that something goes wrong The outcomes for you are: q You wont have to deal with complaints that cost you time and risks your client relationship / business q You will have less issues and more peace of mind 5

2. Trust our stringent standards for Manufacturing & Testing High standards • Prior to each cartridge launch, Xerox® sets very high level of specifications for components, performance levels and print quality. • Change of all critical parts • Parts tested at environmental extremes (humidity, temperatures, etc. ) Strictest Quality Process in the industry • Component screening evaluation prior to production • 20 performance attributes measured analysed • Image Quality Analysis system (owned by Xerox®) • Only virgin OEM empties used Triple testing Programs • Every Cartridge is print tested • Extensive life time duration tests on samples • Xerox® Technology Centre tests random samples from customers direct 6 Xerox Success Rate: > 99%

3. 100% Worry-Free Printing • Each Xerox® cartridge for non-Xerox Printers bears a Lifetime Guarantee • Using Xerox® Cartridges does not invalidate the printer warranty • 100% free end-user technical support line • Legal Considerations – Xerox® & its Customers are protected – Xerox® respects and never knowingly infringe other’s Intellectual Property (as an OEM, this is imperative for Xerox). – Xerox® stays aware of domestic and foreign legal developments (aftermarket cartridge sales including patent infringement, permissible repair and reconstruction, trademark issues, etc. ) 7

4. Commitment to Customers & Ongoing Monitoring End-user technical support line for Xerox® supplies provides: q q q Live troubleshooting interaction with a representative. A replacement process to the end user location for defective cartridges that cannot be resolved with an agent. Service arrangement (free of charge) from service provider in the rare case of damage caused to the printer. Customer concerns are monitored and tracked continuously in order to assess field complaint rates and drive product corrective action / improvement. “Thank You. That's why we sell so many Xerox Supplies for non-Xerox Printers, good product and good support if anything does go wrong. Great customer service!” ~Received at customer support line, January 2016 8 Support Number: 1. 866. 937. 6948 (866. XEROX 4 U)

5. Environment, Health & Safety Xerox® is one of the world’s largest recyclers* Xerox® always ensures full health and safety compliance Xerox Green World Alliance Program ISO 9001 & ISO 14001 certified production facilities SDS (Safety Data Sheets) q Are produced for each cartridge, q Fully disclose the component contents, q Can be located on Xerox website. Available on demand in the US q Free of charge to the end-user & reseller q 3 Simple return options for the end-user, from individual units to pallet returns Xerox® recycles 5, 000 tons of toner and cartridges per year Xerox® reuses plastic shells q No impact on quality or performance q Major positive impact on the environment * Source: Recharger Magazine 9 Flammability is assessed by cross referencing the plastics used. EH&S 1001’s filed by the Supplier stating full contents.

6. Standards & Accreditations More details about these Standards and Accreditations upon request 10

What are the risks of dealing with bargain brands? 1. Six reasons why you should not sell bargain products & brands 2. Third Party testing – Xerox Supplies vs bargain brands (Ninestar) 3. In the news: the risks of selling Clones/New Build cartridges 4. Resellers, you may be at risk!

1. Six reasons why you should not sell bargain products & brands 1. New build/Cloned cartridges very often infringe original equipment manufacturers’ (OEM) patents - it is often illegal to sell them. 2. Even if a new build/clone cartridge does not infringe a patent, it may infringe the Intellectual Property of the OEM which is also a criminal offense. 3. False labelling (including selling new builds/cloned cartridges as ‘refurbished’ or ‘refilled’) is illegal in the US 4. Bargain brand cartridges can damage printers, meaning you may be liable for repairs or replacement. 5. Some bargain brands may contain toxic chemicals that could damage the environment or even someone’s health. 6. Independent testing has shown that bargain brand cartridge page yields can be 50% lower and have failure rates of up to 95% higher* 12

2. Third Party test – Xerox® Supplies vs bargain brand (Ninestar) (Buyers Laboratory Inc – BLI) Yield/Productivity • Xerox® yield is superior to the Ninestar stated yield ü 12% superior yield on mono cartridge & from 43% to 61% on color cartridges Reliability • Xerox® cartridges are a safe haven from the perils of selfproclaimed top quality aftermarket brands, that really aren’t top quality at all ü Ninestar cartridges repeatedly display premature expires Image Quality/Print Quality • Inferior Ninestar quality is evident in both the mono and color cartridges ü In direct comparison to Ninestar, Xerox is clearly superior 13 Example of defects on a Ninestar color print All of the Ninestar cartridges suffered from spotting and “dirty” pages

The Bargain Brand Toner Trap 14

3. In the news: the risks of selling Clones/New Build cartridges Epson sues 24 companies (11 manufacturers & 13 distributors) for patent infringement – North America (2006 – Actionable Intelligence) Lexmark sues companies for patent infringement on monochrome toner cartridges – North America (2010 – Actionable Intelligence) Canon files for patent infringement suits in: q 2006 q 2010 q 2012 (ENX Mag, 2015) 15

4. Resellers, you may be at risk! Risk #1: If an OEM takes you to court you may be liable to pay for financial damages. Your supplier is not the only one liable… Why? Anybody who imports, distributes, handles, markets, possesses, etc. , patent-infringing new-built products is liable to criminal prosecution. So you may be liable too! Risk #2: Even if you are only the reseller of the product, you still have to know whether or not a patent is infringed. Even if you checked and could not find the patent in the national register, the product may still not be patent-free… Why? Only private consumers are exempt from patent issues, but businesses are not: National laws dictate that any commercial operator must be aware of any patents on the products they trade. Patents are often hard to find, but there are thousands of them on toners. They exist on most elements of each cartridge model. Source: Actionable Intelligence – April 26, 2012 16 Risk #3:

I don’t deal in consumables. How should I go about it, and what should be my first steps? 1. Getting started in the laser supplies marketplace 2. Marketing and Sales support to optimize your sales opportunities

1. Getting started with Xerox® Supplies in the laser supplies marketplace A. Become the absolute expert on Xerox® Supplies Don’t worry! We provide you all the necessary tools B. Set up your channel and design the perfect offer for Xerox® supplies Use your expertise to bring in new clients and steadily grow your profit - cartridge after cartridge. C. Get registered in Xerox systems Register as a Xerox® Authorized Reseller and enjoy even more ways to grow your business. More tips and valuable resources to be found here. http: //www. office. xerox. com/latest/XNXBR-03 E. PDF? ts=635682229292830670 18

2. Marketing and Sales support to optimize your sales opportunities Training In-depth product training and market focused sales training. Collaterals Range brochures, flyers and calculators all available to support your sales teams. Smart Centre: Partner Portal A whole range of business resources is just a click away. Find products, collaterals, programs, etc. e. Marketing Support for your business with e. Marketing resources 19 Global Partner Program • Authorized Supplies Reseller status • Rebates • Training • Extra business opportunities • Sales & marketing tools • Special prices • Managed Product Trial, etc

Will my relationships with the OEM be at risk? As an OEM, what is the position of Xerox® on the matter? 1. We have good relationships with other printer OEM’s and also sell their supplies. Won’t this hurt our relationship with other OEM partners? 2. Why doesn’t Xerox® offer a second category of supplies for its own Xerox® equipment?

1. We have good relationships with other printer OEM’s and also sell their supplies. Won’t this hurt our relationship with other OEM partners? This is a valid point. The reality in the marketplace is that a majority of customers are now considering third party supplies as a way to save costs. If Resellers are approached by other OEM’s, they need to have a frank discussion and explain that there is customer demand for lower-cost supplies alternatives. If our Resellers don’t provide it, customers will buy from their competition. There is a segment of the market that will always buy OEM supplies, so Resellers are not being disloyal by responding to a separate market demand. If Resellers need to carry non-OEM supplies, they best do it from Xerox®, a brand whose reputation and quality they can trust! 21

2. Why doesn’t Xerox® offer a second category of supplies for its own Xerox® equipment? Printer OEMs are not all alike and neither are their products. Extensive customer and reseller research reveals that Xerox is perceived in the market as the highest quality offering – superior to that of HP, Lexmark, Samsung, Brother and others. As the highest quality, premium solution, Xerox® is targeting customers who simply expect the best. A second, less expensive, category of Xerox® supplies for its own products would create confusion in the marketplace and hurt the quality reputation that Xerox® customers have come to expect and trust. 22

What is the rest of the market doing/thinking? 1. Testimonials

1. Testimonials following a product trial: “The customer was satisfied with the technical and usage instructions. The print output displayed high speed and high quality. The managed product trial gives the customer a secure, safe and comfortable feeling about Xerox cartridges. ” “The customer was extremely satisfied and impressed with the managed product trial. In particular, the shared technical and usage instructions conveyed a reliability about Xerox, both as a company and as a brand. ” 24