Market Defined

The Company has identified an industry, which it has branded the Member Based Organization (MBO) market. It is made up of a large cross section of established and recognized organizations, which we calls Verticals. By definition one can easily recognize various MBO verticals, such as health and fitness clubs, frequent flyer organizations, shopping clubs, community associations etc. These all represent verticals within the definition of the MBO market.

Through extensive market research the Company has expanded the MBO market well beyond the recognized verticals. Common attributes, which exist among identified MBO markets, have defined the expansion of the potential market for the Company.

The Company believes that there are five common features, which identify an organization or an industry as a targeted MBO market. The characteristics include:

• Organization – There needs to be a formal organization. Typically, this will be a company, charitable organization or a formalized group.
• Service – The organization will provide services.
• Member – The member is defined as the person, company or other group to which the service is provided.
• Contract – There will always be a contract, either formalized or implied, between the organization and those who are provided a service.
• Recurring Payment – the member pays for services provided. Examples are membership dues, contributions, or association dues. These payments are typically recurring on a periodic basis, such as weekly or monthly.

There are virtually hundreds of organizations that could be included as MBO markets. With respect to:

• Children – Daycare organizations, private schools, after school activities, swim clubs, boy scouts, girl scouts, parenting clubs, pediatric practices, county sporting associations, YMCA, specialty stores.
• Private golf and country clubs.
• Professions – Associations related to business classifications such as accountants, lawyers, doctors and engineers.
• Housing – Homeowner associations, condo associations, property management, rental companies, self storage, home improvement organizations, government housing authorities, taxing authorities, and senior living communities.
• Health – Medical organizations and practices, wellness centers, hospitals, clinics, rehabilitation centers, assisted living, nursing homes, health insurance companies, and life insurance companies.