Standard Models. Hotel software is typically priced in one of two ways: 1. A monthly recurring fee per-key (also called pay-per-room). Charges are usually on a tiered basis depending on the size and complexity of the hotel; however, an average fee is about $120 per room per month. 2. A one-time license model, also per-room priced, with an average price of a complex system being around $5,500 per room. In this model, the provider charges an annual maintenance / upgrade support fee varying from $50 to $200 per room annually. Additionally, in this model, the hotel is also charged an installation and training fee. When hardware is necessarily installed with the software (rather than it being generic server or PC based), it either is included in the recurring fee model at no additional charge or it is sold (in the one-time license model) at a margin typically of only 5% to 7% . Opportunity cycles. As noted above, an average casino-hotel greenfield project spends $120,000 to $175,000 per key (room). A typical hotel renovates every seven years; establishing a natural sales cycle for in-room improvements. That cycle is disrupted periodically when sufficient market-demand requires new products more immediately. Recent-history examples of such disruption include flat screen televisions and high speed internet; consumer expectation for each developed before many properties were even halfway through their every-seven-years renovation cycle. Our model. Like the hospitality industry expectation for most technology solutions, we are a per-key fee model. As a combination of software and in-room hardware, we are necessarily on the “premium” side of that pricing model. Our two pricing models follow.

These models are enriched by a cafeteria-style selection process of additional features that may not be apropos for every property but may be essential for others. Our revenue models are designed specifically to ape the technology models already recognized and in use within the hospitality industry. Traction, Marketing / Sales Strategy, & Growth We are one of the very few start-ups that begins with sales agreements and a multi-million-dollar television roll-out to promote our system. Instant Pre-Sales. Two of our three founders are principals of the high-profile casino-hotel-resort development company, Gary Green Gaming, Inc. with multiple pending greenfield new hotels on their plate; each to include SmartRooms©. With one of their high-profile projects tentatively slated to be announced in a press conference with the President of the United States (Gary Green’s former employer), SmartRooms© is on track to be prominently featured. As soon as the product is ready and those casinos are financed, SmartRooms© will be installed with the 2017 construction of the 250-room “Down The Shore” casino-hotel-resort on Atlantic City’s Boardwalk, the 200-room “The Mississippi Music Exploratorium” casino-hotel-resort on the Gulf Coast of Mississippi, and the 500-room Elem Pomo Tribal hotel-casino-resort on the San Francisco Bay, as well as other upcoming projects being vetted. This represents an initial order of 1,000 rooms with guaranteed installation, and consequently immediate authenticating valuation of the company … as well as the intangible value of such high-profile proof-of-concept. National Television Exposure. Our co-founder, Gary Green, has been engaged to host a 2017 national broadcast network television series called “Casino Rescue.” The premise of that show (as described by the production company, Frogwater Media) is: “Ex Donald Trump titan and casino expert Gary Green, turns down-and-out casinos, into amazing cash cows. Gary and his team transform perennial money losers into shining beacons of business. Every week they tackle the hard issues using 30 years of gambling science and know how to bring life back to a casino.” The show is similar in format to “Restaurant Impossible,” “Bar Rescue,” and other reality series of that genre. Among the rescue-rehab tools that Gary Green will feature on national television will be the inclusion of SmartRooms© to help turnaround the troubled properties. More than merely a purchased commercial, this will be multiple-times-per-episode featured product placement highlighting features of SmartRooms© enabled hotels. This represents tens of millions of dollars advertising value for our product; unheard of for a tech startup. Sales Strategy, & Growth. Additionally, our CEO, Buddy Levy, is the former in-house counsel for the Seminole Tribe of Florida’s business committee and still maintains a close relationship with the Seminole and many other Tribes nationwide. Buddy J. Levy was part of the initial funding and management group that built the Tribe’s Tampa Florida casino-hotel-resort (today the Seminole on the worldwide Hard Rock Café brand of restaurants, hotels, and casinos). That and other Tribes are currently in the early stages of hotel expansions and upgrades; and we have the “foot-in-the-door” to introduce SmartRooms© to those properties. Hands-on Industry Exposure. In addition to those “out-of-the-gate” instant sales, we have developed initial sales strategies. As noted earlier, there are 235 hospitality industry trade shows annually in the USA (including regional shows for casinos, others for hotels, others for resorts, special regional shows for Tribal resorts, etc.). Though displaying at all of those shows is not effective, key shows have proven to be a magnificent way to roll out new product sales. • We have found that one of the most effective product introduction ever presented to the hospitality industry was Sheldon Adelson’s pre- construction introduction of his Venetian Hotel & Casino Resort in Las Vegas. He created a mobile (on wheels) tradeshow booth that was a full-size model of a suite in his proposed hotel; potential customers at convention-buyer shows across America were able to walk through what a room would be like, sit in the furniture, and experience the “wow factor” of what a stay at his resort would be like. • SmartRooms © will employ that same methodology. We intend to create a generic working hotel room model in a small-trailer / trade show booth format where hotel buyers can interact with a fully functional version of SmartRooms©. Potential buyers in the hospitality, architectural, construction, and development worlds will be able to experience how SmartRooms© will work in their own properties. We will enhance that trade-show strategy at many locations with celebrity book signing appearances by our co-founder Gary Green, who not only is the star of the television show but also a Pulitzer-nominated best-selling author. (Represented by Hollywood uber-agency CMA, for several years Gary Green has appeared as a celebrity spokesman for slot machine companies and other hospitality-industry clients. Those companies have learned that Gary’s appearance at their trade show booths garners a flow of trade-media and industry buyer traffic.) His appearances for SmartRooms © will be enhanced further by the buzz surrounding the release of his new book (on Indian casinos) which is slated to ship later this year as a New York Times bestseller. This will be especially effective for SmartRooms© at hospitality trade shows specific to the Native American Indian sub-vertical. Sales. Our sales materials will include custom videos of the product in action (punctuated by clips from Gary Green’s television series’ feature of SmartRooms© in combination with targeted inside sales reaching out to our founders’ network of developers, hospitality architects, operators, Tribes, chain operators, management companies, and other key industry players. Our substantial experience in high-end enterprise software sales tells us that customers only rarely move forward with a purchase solely through inside sales strategies. It is equally known that an effective field (outside) sales team is a costly endeavor requiring salaries, commissions, and costly infrastructure. Therefore, we have elected to use (at least initially) a manufacturer’s representative company as our outside sales channel; this avoids the overhead, personnel costs, and salaries. Manufactures representative companies in general have their own culture and areas of focus. Within that world and specific to the building trades there is a discipline known as MRO sales (maintenance, repair, and operations). These procurement after-market companies (like Sonepar, Wolseley, Rexel, Wurth Group, W. W. Grainger, etc.) focus on construction, rehab project and technology-specific products for their networks of thousands of customers. SmartRooms© is an ideal match for their portfolios, which, according to Technavio (the leading global technology research and advisory company) are constantly looking for new products for their client bases. Almost universally, these MRO distributors charge a flat 4% commission with no other fees or expenses from the manufacturer. Their networks and that low commission figure represents a substantial savings over operating a full service sales organization ourselves. Future Expansion & Growth. Recognizing the power of weekly exposure on national television and the celebrity factor, as well as the reach of the MRO networks, we intend to look toward a future version of SmartRooms © adapted specifically for other commercial applications (offices, warehouses, etc.) and eventually entering the already-busy home use market. For the latter, Gary Green’s agent maintains an open relationship with home-shopping; channels we believe that once SmartRooms© is nationally recognized, from “Casino Rescue” and from high-profile hotel industry adoption, a consumer version becomes a natural fit for home- shopping television.