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 XcallibreBenefits 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 XCallibre Network Provider/Service Provider Xcallibre Service Provider Service Providers 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 1 st 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 EntityNumber of active pens Total number of transactions per month % Transaction Commission % Enablement & Subscription Commission Gold SPany 20%10% Plat SP (Upfront Volume Commitments) TBD 30%15%

15. StatusNumber of active pens Total number of transactions per month % Transaction Commission % Enablement & Subscription Commission Bronze Agent1 – 1991 – 49 99910%3% Silver Agent200 – 99950k – 199k15%6% Gold Agent1000 - 4999200k- 999k20%9% Remuneration structure for Xcallibre Service 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. 1.2. Monthly lease – R450/pm 2.3. 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 Number of transactions per monthCost of each transactionBundle cost 1000R5R5000 5000R4.5R22500 10 000R4R40000 20 000R3.5R70000 30 000R3R90000 N.B Corporate rates are cumulative and based on combined projects... N.B. – for volumes exceeding 30 000 transactions rates will be provided on request N.B A transaction is classified as a single sided A4 page, each subsequent page is considered an additional transaction. An A3 page will be considered the same as two A4 pages, therefore 2 transactions