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Marketing Bulletin Lexmark 2016 Supplies Advantage Program for Independent
Dealers selling Lexmark Supplies and Genuine Lexmark Parts.
Lexmark's 2016 Supplies Advantage Program is designed to
incent and reward your business for selling Lexmark Toner
Supplies and Genuine Lexmark Parts purchased from Lexmark
Authorized Distributors.
Changes to the program are highlighted with a black line in the
margin alongside the change. The payout percentages have not
changed from the 2015 program.
The main change is a new name for the program and inclusion
in the Lexmark Global Channel Program.

Program Highlights • Independent Dealers with 2015 net purchases of $50,000 or greater in Lexmark Toner Supplies purchased from Lexmark Authorized Distributors are eligible to join the Supplies Advantage Program for Supplies and Parts. • Rebates can be earned for select Lexmark branded Toner Supplies and Genuine Lexmark Parts purchased from Lexmark Authorized Distributors by meeting assigned revenue targets. • The intent of the program is to reward the dealer for protecting and growing Lexmark Toner Cartridge and Parts revenue. • Supplies Advantage rebate is not intended to "subsidize price" in an effort to win business from a • Earned rebates may be redeemed toward the purchase of Lexmark printers. 2016 Supplies Advantage Program for Business Supplies "At A Glance"
Performance Rebate:
Of Assigned 2016 Quarterly Toner Supplies Net Purchased Business Supplies Purchases >75% 100% 110% Note : 2016 Business Supplies Targets are available from your Lexmark Territory Sales Manager Revenue Attainment On 2016 Toner Supplies Net Purchased Revenue Attainment Bonus to be Paid on Quarterly Toner Net Purchased Revenue * Compliant Cartridge Bonus for Minimum Target Attainment. Must sell only Genuine Lexmark Parts and Lexmark Supplies to be eligible On 2016 Toner Supplies Net Purchased Revenue * See Attachment for a complete list of eligible Toner Supplies included in the 2016 Supplies Advantage Program.
2016 Supplies Advantage Program for Genuine Lexmark Parts "At A Glance"
Performance Rebate:
Genuine Lexmark Parts $50K $100K $200K+ On 2016 Genuine Lexmark Parts Net Purchased Revenue * See Attachment for a complete list of eligible Genuine Lexmark Parts included in the 2016 Supplies Advantage Program.
Refer to the list of all Toner Supplies and Genuine Lexmark Parts part numbers and the revenue credit schedule used to measure purchase objectives to determine qualification for rebates. Sell-in reporting received from Lexmark Authorized Distributors will be aggregated and used to measure Net Purchased Revenue attainment vs. targets. Your Lexmark Territory Sales Manager (TSM) will perform various audits and use other methods to confirm Toner Cartridge and Parts loyalty. Lexmark in its sole and absolute discretion will make the final determination as to whether the requirements of the 2016 Supplies Advantage Program have been satisfied. All Independent Dealers must return a signed copy of the Program Enrollment Form to your Lexmark Territory Sales Manager to participate in the 2016 Supplies Advantage Program. * Net Purchased Revenue is less rebates and returns. 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers

Terms and Conditions These conditions are an express obligation of receiving any performance rebates. In the event of non-compliance, intentionally, of these conditions or any other conditions of this Supplies Advantage Program participating dealer shall lose any future performance rebates immediately upon Lexmark's discovery of such violation unless otherwise agreed in writing by Lexmark. In addition, participating dealer shall immediately refund any performance rebates paid to participating dealer in the month(s) in which the condition(s) was/were not met. Failure to insist on strict performance of any and all of the conditions of this Supplies Advantage Program shall not operate as a waiver of Lexmark's rights to insist on strict performance in the future. Reservation of Rights – Lexmark reserves the right to: • Modify or withdraw the terms and conditions (attached) of the Supplies Advantage Program immediately upon written notice. • Select the month against which product returns will be deducted. • Audit compliance with the terms and conditions. • Modify targets to reflect the movement of an end user account of $10,000 annualized cartridge revenue or more from one reseller to another. • Lexmark and its fulfillment companies shall not be liable for any injury, damage, loss, expense, accident, delay, inconvenience or irregularity arising from the use of any funds earned in the program. • Reject a transaction or disqualify any dealer from participation in this program, should Lexmark determine in its sole and absolute discretion that there has been non-compliance with any applicable terms and conditions or for any other reason deemed appropriate by Lexmark.
For Independent Dealers to be eligible for the Supplies Advantage Program:
• Dealers must have purchased in 2015 a minimum net total of $50,000 in Lexmark Toner Supplies
directly from a Lexmark Authorized Distributor or be granted an exception from Lexmark sales management. Proof of eligible Lexmark Toner Supplies and Genuine Lexmark Parts purchases will be based on reporting from Authorized Distributors to Lexmark. If you have any questions on whether you are purchasing from an Authorized Distributor, see the Authorized Supplies Distributor List. For any change to these reports, you must contact your distributor and have your distributor amend its report to Lexmark. • Supplies Advantage dealers may not be a Lexmark Authorized Supplies Dealer (ASD) (eligible to purchase direct from Lexmark) or be owned by or be a subsidiary of a Lexmark Authorized Supplies Dealer, Wholesaler, Lexmark Authorized Parts Distributor or a Lexmark Parts Distributor. Dealers who purchase Lexmark Toner Supplies and Genuine Lexmark Parts for resale to other dealers are not eligible to join the Supplies Advantage Program. • The participating dealer is also expected to honor ALL Lexmark obligations including the marketing of Lexmark Supplies and Genuine Lexmark Parts for resale only in the United States, and the obligation to not purchase and/or sell gray market (i.e., Lexmark Supplies and Genuine Lexmark Parts originally sold by Lexmark for use outside of the United States) or counterfeit supplies or parts. Dealer will use reasonable commercial efforts to not target, market and offer to sell or sell, Compliant Cartridges, to customers that are using Lexmark Branded New or Remanufactured cartridges. Lexmark shall determine in its sole and absolute discretion whether such goods qualify as gray market or counterfeit supplies or parts. 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers

• The Supplies Advantage Program is designed to foster sales and marketing teamwork and to that end, the participating dealer agrees to respond in a timely fashion to Lexmark sales representative phone calls and/or emails as well as requests for sales meetings, training, education, planning sessions or strategy sessions designed to identify 3rd party competitive winback opportunities. If sales training or education is provided by a Lexmark sales representative, the Dealer agrees that at least 75% of eligible sales/marketing/staff personnel for that particular location will be in attendance. • Dealer agrees to have all members of its sales organization complete annually the Supplies Advantage Training Modules identified below. There are four Supplies Advantage Training Modules that cover the following subjects:  Best Together & Supplies Loyalty  Product Training (emphasis on Unison toner) – Multi-part Print System - Video  Sustainability  Regionalization and Serialization I-Learn modules accessible through PartnerNet • Dealer must fulfill all terms and conditions set forth in any Lexmark special bid contracts. Dealer is also reminded that the "Return Program Cartridge" conditions are an essential part of the Return Program Cartridge offering. For this "up-front rebate" from Lexmark, the user agrees that this Cartridge will be used only once and that the empty Cartridge will be returned only to Lexmark for remanufacturing and recycling. By selling this Return Program Cartridge, you, the Dealer, likewise are agreeing to comply with these terms and conditions – and as a participating Dealer expressly agree to return an empty Return Program Cartridge only to Lexmark if one comes into participating Dealer's possession or possession of an agent, affiliate, subsidiary or contractor of Dealer. In addition, participating Dealer expressly agrees that it, or any of its subsidiaries, affiliates or agents, shall not sell or otherwise market repair, used or remanufactured Lexmark Return Cartridges. Regular-price cartridges without the single-use restriction are available for those customers who do not choose the Return Program Cartridge with its terms. • Dealers must provide a copy of their current blank letterhead or a copy of a blank invoice and the Dealer Federal Taxpayer Identification Number for accounting purposes. These conditions are an express obligation of receiving any performance rebates. In the event of non-compliance, intentionally or unintentionally, of any conditions of this Supplies Advantage program, a participating dealer shall lose any future performance rebates immediately upon Lexmark's discovery of such violation unless otherwise agreed in writing by Lexmark. In addition, in such event, the participating Dealer must also immediately refund any rebates paid to the Dealer in the month(s) in which the condition(s) was not met. Failure to insist on strict performance of any and all of the conditions of this Supplies Advantage program shall not operate as a waiver of Lexmark's rights to insist on strict performance in the future. • 2016 Toner Supplies and Genuine Lexmark Parts quarterly purchase targets will be established by Lexmark using 2015 sell-in data provided by Lexmark Authorized Distributors plus current plan uplift. Credit for purchases of Supplies Advantage eligible Toner Supplies and Genuine Lexmark Parts will be made according to the revenue credit schedule shown in the 2016 Product List. Applicable Special Bid credits and returns will be deducted from the revenue credited in the month the credit is calculated. • Your specific 2016 purchase targets will be provided by your Lexmark Territory Sales Manager. 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers

• Attainment will be measured quarterly and Supplies Advantage Performance rebates will be paid quarterly on the following schedule. (Any rebate less than $50 will be held until the amount is greater or the Dealer leaves the program, whichever occurs first.) Measurement Period
Payment Period
Quarter 1 (January – March) Quarter 2 (April – June) Quarter 3 (July – September) November 30, 2016 Quarter 4 (October – December) February 28, 2017 • Supplies Advantage Performance rebate claims for incorrect payment, must be submitted within six months from the date of the incorrect rebate payment. Any claims for Supplies Advantage Performance rebates after six months from the date of the product shipment are expressly waived. Supplies Advantage Performance rebate claims for incorrect payment must be made to Lexmark in writing. No further Supplies Advantage Performance rebates will be due and owing for any purchase of eligible Lexmark Toner supplies or Genuine Lexmark Parts upon the effective date of termination or expiration of this program except for those Supplies Advantage Performance rebates earned prior to the effective date of termination or expiration of this program. • To qualify for the Lexmark Compliant Cartridges bonus, the Dealer must offer only new Lexmark- branded cartridges, Lexmark-branded cartridges remanufactured by Lexmark, 3rd party remanufactured cartridges produced from Lexmark Regular (non-Return Program) Cartridges, or non-Lexmark branded Compliant Cartridges purchased from the Authorized Compliant Distributor list. Purchase of toner supplies and parts from Compliant Distributors will be reviewed quarterly. Compliance with the foregoing obligation will be determined by Lexmark in its sole and absolute discretion. • Dealers above $250,000 in Lexmark toner supplies revenue must provide a business plan. All participating dealers must provide monthly sell-thru reports within 30 days of the close of each month in order to qualify for any rebates. The preferred process for this data exchange is via EDI. Failure to submit monthly reports on time will result in the forfeiture of any rebates that have been earned in the Program. If a Dealer does not currently have EDI capability, the Dealer must forward sell-thru reporting monthly via an Excel spreadsheet. Sell-thru information must include, at a minimum, transmission date, transaction date, or invoice date, sold to name, sold to address (street, city, state, zip), invoice number or order number or purchase order number, ship to name if different from sold to name, ship to address (street, city, state, zip) if different from sold to address, Lexmark part number and quantity sold, shipped or returned. • If a Dealer does not take ANY Lexmark product into their inventory and instead uses a Lexmark Authorized Distributor to drop ship directly to the Dealer's end user, then the requirement of Dealer monthly sell-thru reporting is waived. The Dealer must communicate to their selected Lexmark Authorized Distributor that the Dealer authorizes the distributor to provide end user ship to information to Lexmark. If the distributor does not provide the end user ship to information then the requirement remains with the Dealer. • A dealer's participation in the Supplies Advantage Program may be terminated with or without cause at any time immediately upon notice to the dealer. In no event shall Lexmark be liable for 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers any lost profits, loss of savings, or incidental or consequential damages, special damages, indirect damages or punitive damages arising out of, or relating to this program. Lexmark also reserves the right to modify Supplies Advantage targets to reflect the movement of an end user account of $10,000 of annualized supplies and/or parts revenue from one dealer to another. • Dealer agrees to allow Lexmark to perform onsite inspections (for cause and with notice) of Lexmark product inventory and Lexmark Toner Supplies and Genuine Lexmark Parts sales records during 2016. • Toner Supplies and Genuine Lexmark Part numbers announced in 2016 will be included in the 2016 Supplies Advantage Program. • You may choose to receive earned rebates on program attainment in the form of cash, or uplift the earned rebate dollars by 30% towards the purchase of new Lexmark mono or color laser printers at the current Lexmark Web price. The printers must be ordered directly from Lexmark by providing written confirmation to your Lexmark Territory Sales Manager. Lexmark will absorb any applicable sales/use taxes, shipping and handling. • The list of eligible printers will be provided at the time the rebate is processed as the Lexmark product line may change over time. Printers must be ordered on a single order and one shipment will be made directly to your location. • Example: Quarter target attainment @ 1% results in a rebate equal to $1,500.00. You can take the $1,500.00 in the form or cash or $1,950.00 towards the purchase of Lexmark laser printers directly from Lexmark at the current Lexmark Web price. • The terms of this program shall be governed by, and construed in accordance with, the laws of the Commonwealth of Kentucky, without giving effect to its conflicts of law provision. Any Supplies Advantage dealer that chooses to participate in this program hereby consents to the exclusive jurisdiction and exclusive venue of the federal, state, and local courts located in Fayette County, Kentucky for any and all matters arising from or relating to the program. 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers

2016 Sell Thru Reporting Requirements Sell thru detailed requirements for Supplies Advantage Program
Field Name
Field Description
Reference code and Partner used when Invoicing their customer Day the Partner invoiced their customer Day the Partner shipped the product to their customer Lexmark Material Number Lexmark Product Reference Code Quantity Shipped/Returned Number of Units the Partner has shipped to their customer or had returned from their customer Ordering Party Company Name Name of the Entity the Partner Sold the Lexmark product to Ordering Party Address Address of the Entity the Partner Sold the Lexmark product to Ordering Party City City of the Entity the Partner Sold the Lexmark product to Ordering Party State State of the Entity the Partner Sold the Lexmark product to Ordering Party Postal Code Postal Code of the Entity the Partner Sold the Lexmark product to Ship to Company Name Name of the Entity the Partner Shipped the Lexmark product to Address of the Entity the Partner Shipped the Lexmark product to City of the Entity the Partner Shipped the Lexmark product to State of the Entity where the Partner Shipped the Lexmark product. Ship to Postal Code Postal Code of the Entity where the Partner Shipped the Lexmark product. 2016 Inventory Reporting Requirements Lexmark Material Number Quantity on Hand
Company Name 0f the Lexmark Part Number Month/Day/Year when the Partner reporting data was caputred, "As Of" physically has in 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers

Submitting your Data If you plan to submit your data via EDI please advise your TSM and you will be provided instructions to get your IT team and our Lexmark IT team connected to share the data. If you are submitting as a flat file (non EDI) please contact you TSM who will provide a template to forward your data to: [email protected] 2016 Lexmark Business Plan Executive Overview (Sample Plan and Data)
The XX Dealer Company vision is to provide comprehensive technology solutions that allow organizations of
any size to improve competitiveness, gain better control over computing environments and reduce total
computing costs. Over the last 20 years, that vision has remained the same, although the services the XX
Dealer Company offers have grown substantially.
XX Dealer Company employs approximately 100 individuals, more than half of whom are sales representatives,
and maintains regional Sales and Distribution facilities in _, and
_.
2016 Total
2016 Total
2016 Competitive
2016 Business
2016 Total
2016 Total
LXK Supplies Business Supplies Business Supplies
Supplies (Toner)
LXK Printer Forecasted Printer
2016 Initiatives – Describe the initiatives and supporting actions to increase Lexmark's Business Supplies
(toner) revenue and/or Sell-thru. List as many initiatives and supporting actions as needed.
Initiative 1: Increase Business Supplies Revenue by xx%.
Actions to Support Initiative
Conduct executive call to gain agreement to introduce TSM to sales team
Acquire list off XX Dealer Company's sales team
Gain agreement to conduct monthly and/or ongoing communications
program to include email blasts, emails, phone calls and attend select sales
Schedule and roll out an in-house sales rep Supplies Training Program
Launch Lexmark's Supplies Advantage Program to sales representatives
Launch a Joint Call Program to win back third party reman business
Identify and close 5 winback opportunities
Initiative 2: Increase Supplies Loyalty by xx%.
Actions to Support Initiative
16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers

Initiative 3: Increase Hardware Revenue by XX %
Actions to Support Initiative
Present Lexmark Printer programs. Train and eductate on program details.
Create printer sales srategy and execute.
Conduct hardware lunch and learn sessions for sales reps.
Schedule and roll out an in-house sales rep Supplies Training Program
Initiative 4: As Required
Actions to Support Initiative
Initiative 5: As Required
Actions to Support Initiative
Lexmark Sales Representative
16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers
2016 Program Enrollment Form
Supplies Advantage Terms and Conditions must be signed and returned to your Lexmark
Territory Sales Manager or to Lexmark HQ by March 31, 2016.
As a Lexmark Supplies Advantage participant, I authorize all Authorized Lexmark Distributors
I source my Lexmark products from to share with Lexmark the same data referenced in the
program document as 2016 Sell Thru Requirements
I agree to stated Terms and Conditions and wish to participate in:


Supplies Program
Parts Program

Dealer Name
Name (print)
Authorized Signature _
Dealer Federal Taxpayer Identification Number:
Blank Letterhead or Blank Invoice Included
Email along with a blank letterhead or invoice to your Lexmark Territory Sales Manager.
Supplies Advantage members with revenue over $250,000 are required to complete a business
plan which should be emailed to their Lexmark Territory Sales Manager.
Note: Blank letterhead or invoice is only required if you are a new Supplies Advantage
member or if your business address has changed.
Decline participation in the 2016 Supplies Advantage Program
please initial on the line and email back to your Lexmark Territory Sales Manager.

16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers Quarterly TSM and Partner Sign off sheet for Toner Loyalty, Sell-Thru & Inventory Reporting and Annual Education Training Dealer Name _
Check boxes
below Yes or
Validation
Confirming for this quarter that the above Dealer sells only Lexmark Toner
or Lexmark Compliant Toner and is eligible for all Compliant Bonus payments
for Toner Supplies.
Confirming for this quarter that the above Dealer only purchased Supplies from
a Compliant Distributor.
Confirming for this quarter that the above Dealer has provided monthly sell-thru
and inventory reports within 30 days of the close of each month and if drop
shipments were made directly from a Lexmark Authorized Distributor to the
end user the Dealer confirms the Lexmark Authorized Distributor has provided the
sell-thru information directly to Lexmark.
Confirming that all Dealer sales employees have completed the annual I-Learn
Supplies training modules available through PartnerNet

Circle which Quarter Point is being recorded (1, 2, 3 or 4)

_
Lexmark Sales Representative Dealer Representative 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers E-mail a scanned signed copy to Beth Etherington in Lexington

Authorized Supplies Distributor List – Headquarter Locations
Authorized Supplies Distributor List - Headquarter Locations
AZERTY INC
1595 Meadow Wood Lane 5 Research Park Drive Orchard Park, NY 14127 St. Charles, MO 63004 CAROLINA WHOLESALE DBA
ARLINGTON INDUSTRIES
INGRAM MICRO
1616 Lakeside Drive 1600 East St. Andrew Place 3797 Spinnaker Court Waukegan, IL 60085 Santa Ana, CA 92075 Fremont, CA 94538 800-756-5888 (West)800-456-4822 (East) DIGITEK COMPUTER PRODUCTS
MARKET POINT
S.P. RICHARDS CO.
44258 Mercure Circle 115 Summit Drive Suite 100 6300 Highlands Parkway D&H CORPORATE HQ
TECH DATA
2525 North Seventh Street 5350 Tech Data Drive Clearwater, FL 33760 Harrisburg, PA 17110-0967 ELECTRONIC BUSINESS
PARTS NOW
1408 Versail es Road 3150 Pleasant View Road One Parkway North Blvd Lexington, KY 40504 Middleton, WI 53562 Deerfield, IL 60015 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers Administrative information Trademarks 2016 Lexmark International, Inc. All rights reserved. Lexmark and the Lexmark logo are trademarks or registered trademarks of Lexmark International, Inc. or its subsidiaries in the United States and/or other countries. All other trademarks are the property of their respective owners. 16-xxx Supplies Marketing Bulletin Section 10.0 Independent Dealers

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