Intelligent Office 1995 began in Boulder, CO 1999 began franchising 50 franchised locations North America open 5 Corporate locations 43 franchisees 8 locations in site selection: Boise, Chicago, Jacksonville, Long Island, Minneapolis, Princeton, Toronto

Intelligent Office – the business A la carte business services Executive suites Telecommunication services Calendar management Appointment confirmation Credit card processing Outbound cold calls ANYTHING a full time receptionist could do Prestigious business address Mail collection

The Competition Executive Suites (Regus) Answering Services (Dakotas, Philippines, India) Postal Outlets (UPS Store, Mailboxes, etc.)

Intelligent Office Professionalism Communications Technology Economies

Cultural Trends Administrative cost efficiencies 40 million SOHO (small office/home office) enterprises in the U.S. Office Business Centers and the green movement Telecommuting and enhanced productivity 8% growth last 2 years

Who needs Virtual Offices? Small Businesses Sole proprietorships Home-based business owners Entrepreneurs Independent Contractors Mobile Professionals Self-employed individuals Consultants Regional and satellite offices Business professionals who have no office staff support Almost anyone!

What is the US Market for Virtual Offices? Total Businesses in US 27M Non-Employer Businesses 20M Employer Businesses 1-9 Employees 4M That is all Small Business! *Based on Census 2012

Top 10 industries to use Virtual Offices? Financial Legal Insurance Real Estate / Brokers Consultants Health Technology Retail Construction, services Entertainment

Why Intelligent Office is a great business? Quality of Life High Margins Labor Controlled Comprehensive Technology No Bad Debt No Inventory No Perishables No Ongoing Capital Requirements INTERESTING – franchisees are small business consultants!

$59K franchise fee and marketing and training fee Business investment $59K franchise fee and marketing and training fee $150K build out (~half franchisee, half landlord) Class A – all relative 4400 square foot turnkey project Furniture Fixtures Technology $150K working capital $350K to $400K total

Cost side EXPENSE ASSUMPTIONS Rent $10,000 ~$27 rpsf and 4400 sf Sales Coordinator $3333 ~$40,000 base Intelligent Assistants $3380 ~$13/hr @ 1.5 Marketing $5000 Royalty ~$25,000 5%

Income side (from item 19)   Average Sales High Low Top 25% $71,302.69(2) $130,573.34 $52,000.42 Top 50% $58,414.30(3) $37,129.22 (1) The total number of outlets whose franchised businesses were located in North America, were in operation as of December 31, 2013, had been in uninterrupted operation for at least 12 months, and were not company-owned, was 46. The total number of outlets (including company-owned outlets) in North America as of December 31, 2013 was 54. (2) The total number of outlets in the top 25% was 11. This is the set of outlets used to calculate the stated average. Three of these outlets (or 27%) had average monthly sales volume above the stated average. (3) The total number of outlets in the top 50% was 23. This is the set of outlets used to calculate the stated average. Eight of these outlets (or 35%) had average monthly sales volume above the stated average.

Intelligent Office support Site selection Turnkey 4 weeks training Hiring of sales coordinator Role/skills Receptionists

Success 55 locations open 8 in site selection 1 closure in 15 years of business

Day in the Life 0-24 Months: 24 months + Active networking setting culture 24 months + New Intelligent Office New business Many options

Territory Opportunities everywhere 250,000 population and up Capitols (lawyers, lawyers, lawyers) ----------------------------------------------- .5 to 5 mile radius Clients from everywhere – member of all 1 Intelligent Office every 500,000 people (Denver 5, DC 7, Toronto 14)

Vision 65 locations by end of 2014 100 locations by 2017 350 locations by 2024 International Master Licenses available (Canada)