REPLACE. REPAIR. RECYCLE.

eReplacements was started in 2004 as a co-manufacturer and distributor of replacement power and imaging products. Our products are aftermarket “replacements”, both new and remanufactured, for expensive OEM products that need to be constantly refreshed and renewed, thereby offering the consumer a green, economical choice when looking for a replacement battery, lamp or toner cartridge.

Because our parts are replacing a consumable that has reached the end of its life cycle, over time there are hundreds of thousands of used parts that need to be properly recycled or they may end up in our landfills. As part of eReplacements growing sustainable solutions efforts to control e-waste, in 2010 we introduced innovative recycling solutions to our customers for their used consumable parts.

In early 2012, eReplacements expanded its green initiatives as it moved into repair and asset recovery/asset management solutions for discarded e-waste, specifically focusing on digital and mobile devices (i.e. smart phones, tablets, MP3 players).

We are privately owned with headquarters and distribution in Dallas, TX with a sales and customer service office in San Diego, CA.

Company History and Organization

OUR MANAGEMENT TEAM:

Tom Peck, Founder and President

Kyle Jundt, Executive Vice President Herb Roberts, CFO

Sean Martinez, Purchasing Manager

Primo Reyna, Warehouse and Production Manager

Alicia Arduini, Marketing Manager

REPLACE

eReplacements

REPAIR

RECYCLE

eReplacements customers include a combination of large national distributors, IT resellers and VARs, ecommerce retailers, brick and mortar retailers, service companies and insurance companies (extended warranty repair or parts replacement). The following are some of the primary customers of eReplacements:

Partners / Resellers

Sustainable Life Cycle Solutions for the Digital World

Battery Solutions Adapter Solutions Lamp Solutions

Repair & Refurbished SolutionsInk & Toner Solutions

eReplacements is a leading provider of high quality replacement parts, recycle solutions and repair solutions for consumer electronics, imaging, digital and mobility products. Our solutions help resellers, service companies, retailers, corporate, government and educational customers extend and maximize the value of their IT assets.WE DO NOT SELL TO THE GENERAL PUBLIC.

eReplacements knows how difficult it is for our customers to gain new customers and maintain existing ones. We feel that we are representing your company when we ship your customer our products which is why we offer several value-added services that go beyond just selling parts. We are not just another manufacturer and “box mover” and we know that you need to sell your customer more than just parts. We can design and tailor programs to continually promote your company to your customers to help keep them loyal and generate repeat business. Here’s how:

Product FinderDon’t know the part number you’re looking for? Our product configurators allow you to quickly find the part you need by using an intuitive drop down user interface to search by product type, manufacturer, model and series to find the exact parts you need. Click on the “Product Finder” link on the top left side of our webpage to see how it works.

This configurator can also be customized to be placed on your OWN website to help your customers find the products they need and give you a professional image. There is no cost to you for using this service, requires minimal IT resources and there is no need to update any product information.

Private LabelingPromote your company on every toner product we ship to your customers. We have the ability to add a custom label or “wrap” with your company logo and contact info on our product boxes. This creates brand awareness and keeps your company name top of mind each time your customer reaches into the supply cabinet for replacement toner.

Blind Drop Ship LabelsWe can customize each of your shipping labels and packing slips to contain your company logo and contact information. Your customer thinks the product is shipping from you.

Private BoxingFor our larger customers, we can ship our product in your own custom box. We will print and warehouse your boxes and insert any of our products into your custom box to blind drop ship to your customers.

Promotional Product InsertsA good way to keep your customers loyal is to provide them with promotional giveaways. Customers always love receiving a thank you gift with their purchase and it’s a great way to keep them coming back to you again and again. We can warehouse and insert your customized giveaway into any and all products we ship to your customers. Some examples of successful promotional giveaways include: M&Ms, golf balls, gift cards (Starbucks, Best Buy, Visa), t-shirts, etc.

Custom FlyersWant to promote a monthly special to your customer base? Get paid by marketers who want to advertise their message to your customers. We have the ability to insert your custom flyers into every box we blind drop ship to your customer. Just provide us with the material and we’ll make sure to get your message out there.

Replacements Parts and Beyond

Order Placement & Customer Service

No matter how you place your order, our order confirmation process is automated through shopping cart and EDI systems. When a Sales Order is generated in our system we automatically e-mail the customer letting them know that we received their order and it is being processed. When the product is shipped, our system automatically retrieves a tracking number from the shipping carrier, enters it into our shopping cart system and automatically sends an e-mail to the customer with the tracking number information.

We have 4 full time customer support agents. This support team is available 7:00 a.m. - 5:00 p.m. PST.

We currently monitor standard call center metrics, such as call time, wait time, call conversion, sales conversion, abandonment rates, and revenue metrics. Our VOIP technology has extensive reporting capabilities that allows us to accurately measure our call center effectiveness.

ACKNOWLEDGE - Acknowledge customer’s concern and the importance of his/her complaint.

DOCUMENT - Inform customer that the information is documented in the complaint database.

ID - Give customer complaint ID/RMA number. RESOLVE - If the issue cannot be resolved on the current call, inform the

customer of the complaint resolution process and that their information will be forwarded to the responsible person for investigation and analysis.

REMIND - Remind customer of all returns and guarantee policies when appropriate.

ENFORCE - Offer alternate solutions to avoid future incident. THANK YOU - Thank customer for taking the time in communicating the

concern and inform the customer of the amount of time it will take to resolve their issue if the complaint has not been rectified (24 hours).

We offer several different ways to place your order ranging from traditional methods to state of the art methods such as: Call In Fax E-mail Website Client Portals* FTP SOAP EDI

*Place orders and view fill rates, tracking numbers, cross reference information, order totals, RMA status, pricing, etc.

Warehousing, logistics and shipping from our centrally located Dallas, TX warehouses (12K sf). All orders and blind drop shipments can reach either coast in 2-3 days ground. In addition, we have distribution partners who stock our products in 5 strategic locations throughout the country so you know you will get your order fast.

We invested heavily into a warehouse and inventory management system and a carousel picking system. The WMS is linked in real time to our website so when an order is received, it is allocated and the quantity decremented from the website. This ensures the most accurate inventory levels possible.

The carousel picking system provides us speed, accuracy and efficiency in picking orders, reducing mis-picks and mis-ships. Every item that gets picked receives a bar code label containing the order number and part number. This bar code is scanned upon shipping and carrier codes on the package are scanned to double check that the correct item is being shipped to our customer.

We run small physical inventory counts every day using our new automated carousel picking system which equates to 5-6 full inventory counts per year.In-stock items will ship same day if the order is received by 5:00 p.m. CST and next business day if received after this time. No minimum requirements per order.

We currently do hundreds of blind drop shipments a day and over 1,000 shipments per day total. We are very experienced with shipping (and importing) internationally and routinely complete cross-border shipping documentation and customs forms for our customer’s shipments.

Warehousing & Fulfillment

Stock Out Process

We are always forecasting and planning ahead but in the event of stock outs, we have an experienced sourcing team on hand. Our sourcing team would first utilize our vast network of domestic suppliers to find a source for an out-of-stock product depending on needed delivery time. Most domestic sourcing orders can ship out same day or next business day direct from our suppliers as a drop ship.

If we cannot locate the product from our domestic suppliers, we will attempt to source it from our Asian vendors but this lead time would take 1-3 weeks, depending on the part and vendor and if the battery needs to be tooled by

our manufacturing partners.

We use our own forecasting tools for demand forecasting and inventory management. We base our forecasting on previous 4 months sales for each sku to ensure we always have the proper amount of product in stock.

Our target is for 6-8 weeks of inventory on hand, depending on the sku and the fulfillment contract with the customer.

Demand Planning

Product Quality Guarantee

IP IN

TELLECTUAL PROPER

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• INT

ELLECTUAL PROPERT

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Testing Equipment• Laptop Battery Test Machines – determines cell imbalance,

remaining charge cycles, etc. • Multi-meters - tests electronic integrity of ac adapters• Lamp testers - tests the brightness and focus of lamps• Light Engines - tests fitting integrity of lamp cages• Laptops and Bottom Cases - tests fitting integrity of laptop batteries• Printer whole units and densitometers – tests the quality of toner cartridges

Consumer Data Privacy (CDP)Protection of consumer’s private data is of the utmost importance to us at eReplacements. We know that one of the main reasons why consumers do not trade in their old electronic devices is because they are concerned about the potential release of their private data. We ensure that every product we repair is permanently and safely wiped of all consumer data using the latest data wiping techniques.

e-Waste ComplianceWe adhere to a strict “zero landfill” policy at eReplacements. Any unused parts from our IT Assets get separated and sorted by commodity (plastic, metal, glass, etc) and are sent to one of our certified downstream R2 recycling partners for proper disposal and recycling.

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ARANTEED

ISO 9001:2000 Q U ALIT Y

ISO 14001

The quality and integrity of our products and company is paramount to us at eReplacements. The following credentials and certificates demonstrate how we stand behind the safety and craftsmanship of our products as well as the ethical standards of our company and employees.

eReplacements is focused on bringing the best of breed products to our customers that meet the highest level of quality, environmental and intellectual property standards. This guarantee outlines that quality commitment to you. eReplacements also wants to assure our customers that all of our products are in 100% compliance with all intellectual property and patent laws with the original equipment manufacturers (OEMs). All of our products are 100% post tested in the factory after manufacturing to ensure quality. In addition, products are randomly inspected and tested for quality, fit and integrity when they arrive in our warehouse. We have invested in many pieces of test equipment to allow us to perform our random inbound product testing as well as testing 100% of RMAs. If an eReplacements supplied product damages your customer’s device, eReplacements will repair or replace any part(s) or device that has been deemed by a technician to have been damaged by our product’s use.

Battery Solutions

Safety Features:IC must be TI BQ20Z chipset or higher which controls the following protections. • High/low temperature shut off protection• Thermal runaway protection• Overcharge shut off protection• Over discharge shut off protection• Cell imbalance shut off protection

Factory Inspection: We use our own inspectors to ensure the products are being made to our specifications.• In-Process Quality check• Material check • Random sampling and testing of each sku.• Pre-shipment Inspection• Certification verification checks

Warehouse Inspection: Upon receipt into our warehouse we randomly sample each sku.• Opening packs to verify cells and chips being used.• Full life cycle test on our battery tester• Form and fit functionally test on test beds• Verification on certifications that factory uses

We offer our customers a variety of compatible batteries for Laptops, Cell Phones, Power Tools, Utility Vehicles, ATV’s, Barcode Scanners, Cameras, DVD Players, Game Systems, Emergency Lighting, GPS, Motorcycles, MP3 Players, PDA’s, Watercraft, Printers, Scooters, Security Systems, Snowmobiles, Two-Way Radios, UPS Backups, Wheelchairs and more .

All of our Battery manufacturing partners are ISO 9001 certified. Laptop Battery plastic casings are made of RoHS standard ABS materials. These are used due to size/toughness requirements. Fire-retardant “P Zero” plastic materials are used to produce all of the casings for our laptop battery packs. The assembly environment is ISO 9901-2000 qualified with a standard semi-automatic assembly line in an air-conditioned and ventilated production facility. Our vendors’ production plants meet European RoHS standard with pollution-controlled production as well as ISO: 14001 environmental standards. No pollution goes into the environment.

100% of all cells are put on “burn in” and testing machines prior to pack assembly to ensure there are no defects with the cells. We use only Korean or Japanese UL certified cells (Samsung, LG or Panasonic). We never use refurbished or reclaimed cells. All assembled packs are fully tested for functionality post-production and also go through a full charge cycle and discharge testing period before they are boxed. Once our product reaches our dock in Dallas, batteries are randomly selected and inspected in our QC Department before it goes into inventory.

AC Adapter Solutions

All of our AC Adapter manufacturing partners are ISO 9001 certified and UL certified. Our vendors’ production plants meet European RoHS standard with pollution-controlled production as well as ISO: 14001 environmental standards. No pollution goes into the environment.

Factory Inspection: We use our own inspectors to ensure the products are being made to our specifications.• In-Process Quality check• Material check • Random sampling and testing of each sku• Pre-shipment Inspection• Certification verification checks

Warehouse Inspection: Upon receipt into our warehouse we randomly sample each sku.• Opening brick to verify materials being used• Test charge using multi-meter• Form and fit test on test beds• Verification on certifications that factory uses

We hold of our manufacturing partners to the specific quality requirements we have for all laptop adapters we sell.• Sealed for protection against moisture and high humidity • Filters and protects from voltage spikes or surges • Internal safety features protect your device from electrical hazards • Low voltage shut down protection • Over voltage shut down protection • “Short Circuit” shut down protection • Over temperature shut down protection • Automatic reset after shutting down

We offer our customers two types of high quality lamps for TVs and projectors.

Our “OEM” lamps are made using a compatible housing and the original bulb that was used by the manufacturer – Osram, Philips, Ushio or Phoenix. These manufacturers are known around the world for high quality, bright, long lasting bulbs with defect rates of less than 1%.

Our “compatible” lamps are made using a compatible housing and a high quality generic bulb. These lamps have defect rates slightly higher than the OEM (2-3%) but offer very high quality and bright lamps at a competitive price.

Factory Inspection: We use our own inspectors to ensure the products are being made to our specifications.• In-Process Quality check• Material check • Random sampling and testing of each sku.• Pre-shipment Inspection

Warehouse Inspection: Upon receipt into our warehouse we randomly sample each sku.• Inspect bulb to verify materials being used.• Lumen output• Voltage check• Marking check• Form and fit test on test beds

Compatible Lamp Solutions

OEM Lamp Solutions

eReplacements is one of only two authorized Philips projector lamp distributorsin the US. Our OEM projector lamps are made with a compatible housing and the original OEM bulb inside (Philips, Osram or Ushio). These lamps, made with the same bulb used by the OEM, offer several advantages over our more economical compatible projector lamps including:• Longer Lasting (2500+ hours vs. 2000 hours)• Brighter Bulbs (up to 20% more lumens output)• Lower Defect Rates (less than .5% vs. 2-3%)

We assemble each OEM projector lamp in our Dallas warehouse. Each lamp ismade to exact OEM specifications and is thoroughly checked and inspected:• Raw material inspection.• In-Process quality check on assembly process• Form, fit and function test on actual projectors post assembly

POWERED WITH A

BULB

• Professionally data wiped 2 times• Factory reset to original settings and update to latest iOS• All buttons tested and functional - home, volume and power buttons• Headset jack tested and functional• Microphone tested and functional• Speaker tested and functional• Touchscreen display is bright and tested to be fully responsive• Front and rear cameras tested and functional• No water damage

eReplacements offers professionally refurbished products and repair services on select consumer electronics. For our refurbished Apple “I” devices (iPhones, iPads, iPods, MacBooks, iMacs), for example, our thorough repair and testing process includes the following steps::

Consumer Data Privacy (CDP) is of the utmost importance at eReplacements. To allay these privacy concerns, eReplacements maintains the highest standards of data removal, wiping each device first upon receipt into our warehouse and again after being repaired.

Repair and Refurbished Product Solutions

Repair, Refresh, Renew

Asset Recovery/ManagementWhen a retailer, insurance company or reverse logistics company is faced with consumer returns that cannot be returned back to the manufacturer, they often turn toward various liquidation channels for an ROI. These channels include auction sites, brokers, and liquidation companies.

Warranty FulfillmentMany manufacturers, retailers and insurance companies offer extended warranties on the new devices they sell. When these devices break during that extended warranty period they may be forced to replace that broken device with a costly new one. Our repair solution can restore the broken devices to “like new” condition thereby reducing the cost of warranty replacements.

Advance Exchange ProgramOur advanced exchange program allows customers to receive a working replacement product without having to wait to have their original product repaired and sent back to them. With today’s smart phones becoming an extension of ourselves, it’s hard to imagine living without them for more than one day. This helps our customers to bring higher levels of customer satisfaction to their customers.

Renewed ProductsWe offer a broad line of “like new” remanufactured Apple iPhones, iPads, iPods, MacBooks and iMacs that have been expertly repaired and renewed by our bench technicians. This allows customers to save significantly over buying new.

Factory Inspection: We use our own inspectors to ensure the products are being made to our specifications.• In-Process Quality check• Material check • Random sampling and testing of each sku.• Pre-shipment Inspection• Certification verification checks

Warehouse Inspection: Upon receipt into our warehouse we randomly sample each sku.• Opening cartridge to verify materials being used.• Full Test print• Form and fit test on test beds• Verification on certifications that factory uses

If any eReplacements supplied laser toner cartridge damages your customer’s imaging device, eReplacements will repair or replace any part(s) or printer that has been deemed by a certified technician to have been damaged by our product’s use.• Post-test print 100% of every cartridge• Dedicated employees perform all testing in factories• Detailed testing of at least 6 cartridges or 4% of sku production batch• Strict print quality testing and monitoring at different page counts• ZERO tolerance for defects - lot rejected for 1 defect• Packaging and box improvements reduce shipping damage• Continuous process improvement using field return data

Ink & Toner Solutions

Our remanufactured laser toner cartridges are co-manufactured in factories that are ISO 9001/14001 certified. All laser toner cartridges sold by eReplacements are guaranteed to perform equal to or better than the original equipment manufacturer (OEM).

eReplacements Grapevine, TX facility is R2 Certified by SERI, the Sustainable Electronics Recycling Initiative. This means we are a Responsible Recycling facility for electronic waste. Here at eReplacements we are committed to Replace, Repair and Recycle electronic waste responsibly.

There are large amounts of electronics with toxic substances in them being thrown into our landfills everyday. To help reduce the harm to human health and the environment, we take these used electronic devices, repair them in our R2 Certified facility and give them a second life. This is our Recycling Solution.

The R2:2013 Responsible Recycling standard is a set of processes, safety measures and documentation requirements for businesses that repair and recycle used electronics. As a R2 Certified facility we demonstrate these standards:

• A monitored Environmental, Health & Safety Management System• Commitment to Responsible Management Strategies for E-Waste• Compliance with Applicable EHS and Data Security Legal Requirements• Protection of Worker and Public Health and Safety and the Environment• Proper Management of Materials That Have Potential EHS Impacts• Proper Handling of Equipment and Components Intended for Reuse• Tracking of Materials that Pass Through the Facility• Data Destruction Procedures• Proper Material Storage• Maintenance of Facility Security Program• Demonstration of Financial Responsibility• Utilization of Appropriate Transport Practices• Documentation to Prove Conformance

R2 Certified

Innovative Recycling Solutions

Responsible recycling of all the products we sell.The products eReplacements co-manufacturers usually replace the original equipment manufacturers part such as a battery for a laptop, a lamp for a TV or projector or a printer toner cartridge. These products may contain material that is hazardous to landfills and our Earth.

eReplacements prides itself on being environmentally conscious with a zero landfill policy which is why we offer our customers several different ways to recycle the replacements for the products that we sell to help keep our planet green.

Batteries contain harmful amounts of lithium and/or lead and therefore must be recycled. For recycling of batteries, we have a partnership with www.Call2Recycle.org to recycle our customer’s used batteries for free at major retail stores across the US. Customers can simply visit our partner’s website to find a recycling location near them to drop off their used batteries.

Projector and TV Lamps contain traces of dangerous mercury which are harmful to the environment. Every lamp we sell comes with a pre-paid label for a customer to ship back their used lamps to us where we will recycle them at no charge. In addition we offer customers a link to our lamp recycling page so that they can have their customers print out a pre-paid label for free to ship their lamps back to us. We recycle all of the parts of the lamp, reusing some of the housings when we can and sending other components like the used bulb and discarded metal and plastic to our approved R2 certified downstream vendors who properly recycle the used bulb.

Recycle Lamps For Credit Our new lamp recycling program helps keep used lamps out of landfills. Send us your used lamps and we will give you credit ($3-$5 per lamp) towards future replacement lamps purchased from eReplacements. Make money and earn repeat business while helping the environment.

Toner and Inkjet Cartridges we sell are remanufactured, meaning a used toner or ink plastic cartridge is recycled and remanufactured using all new parts and new toner or ink. Our remanufactured cartridges are already “green” because they have prevented the manufacturing of a new plastic cartridge which uses more than 2 quarts of oil in the process. We offer free recycling labels for our customers who want to ship back bulk shipments of our used toner and/or ink cartridges so we can continue the life cycle of that cartridge and prevent it from ending up in our landfills.

IT Assets unused parts get separated and sorted by commodity (plastic, metal, glass, etc) and are sent to one of our certified downstream R2 recycling partners for proper disposal and recycling. These partners will supply us with official Certificates of Destruction (COD) that we can provide to our customers upon request. eReplacements’ R2 partners today include Round2 (www.round2.net) and Universal Recycling Technologies (http://www.urtrecycles.com/).

REPLACE

eReplacements

REPAIR

RECYCLE

A Stress Free Return Process:Returns can be processed online via our website or they can be sent over via FTP or EDI files. We also provide an RMA portal on our website for all of all our customers where they can track the entire RMA process from receipt in our warehouse to testing to credit/replacement given.

• The customer also contacts one of our CSR’s and requests a return and a return authorization (RMA) number is provided for tracking purposes.

• The return is received in the warehouse and inspected.• Upon approval a credit is issued or a replacement product is shipped.• Defective products are sent back to the assembler for credit and review.

All RMAs are tracked internally using our proprietary RMA portal. Once an RMA number is assigned, a customer can track the progress of their RMA from receipt into our warehouse, to testing to credit. Upon completion of each step of the RMA process, the customer is sent an e-mail. From when the RMA arrives into our warehouse to when credit is given is usually about 3 business days. We run monthly reports from our RMA portal to track the average days to process RMAs as well as return reason codes so we can work with our manufacturers to fix systemic

problems.

Warranty and RMA ProcessWARRANTY SERVICE

PRODUCT WARRANTY COVERAGE

Refurbished Tablets 1 Year Warranty

Refurbished Phones 1 Year Warranty

Refurbished Laptops/Notebooks 1 Year Warranty

Projector Lamps 6 Months Warranty Compatible Lamps1 Year Warranty OEM Lamps

Batteries 1 Year Warranty

AC Adapters 1 Year Warranty

Ink & Toner Cartridges 1 Year Warranty

30 DAY WARRANTY FOR CREDIT

IT Systems

Our systems include two Linux database servers running MySQL, one to hold marketing data and the other to hold order data; one Linux Webserver running the eReplacements Website (Zencart), and seven Windows servers handling:

• Physical Inventory (Dovetree)• Accounting (SAGE)• eMail services (Windows Exchange) • Production Data (Microsoft SQL Server) • Automated tasks (Network Automation’s Automate) • Shipping (Interapptive’s Shipworks) • Automated Order Processing (Softshare ECS and Delta)

We also have a SonicWall Firewall running a VPN to support research and develop-ment among telecommuting engineers. Our customer facing hardware is kept in a controlled environment at a third party data center.

The PSFTP protocol uses SSH so that all communications over the network are implicitly encrypted and decrypted on the fly. We have recently developed the

capability of using PGP (through the PGP encryption program).

All critical data including customer data, parts, pricing, website hosting, and financial information are stored in a secure co-location facility hosted by InteleNet in Irvine, CA. This facility boasts fully redundant power with diesel generators for backup, diverse paths and providers for Internet access, and automated, reliable security services.

Disaster Recovery

Insurance

We have a $10 million insurance umbrella.

Some key security features of this site include:• Onsite security personnel 24x7x365 • Onsite 24x7x365 Network Operations Center, which monitors all

external and internal security • Closed circuit television security system throughout the data center • Combination access card and photo identification system required to

gain access to facility

In addition, the company has a fully functional sales and customer support office in Dallas, TX that would be used to support our customers in case of a disaster in Southern California.

REPLACE REPAIR

RECYCLE

SALES OFFICE16885 West Bernardo Drive, Suite 370

San Diego, CA 92127

DISTRIBUTION CENTER600 E. Dallas Road, Suite 200

Grapevine, TX 76051

Toll Free: (888) 396-1209 • Phone: (714) 361-2652 • Fax: (214) 501-5106 • www.ereplacements.com