Although each opportunity is different, there is a basic formula we utilize to approach new development. For existing development, the same concept is used however, it is applied in a different order with different timing.

1. Introduction to Group

   • referral by existing clients

   • referral by reputation

   • referral by web site

   • referral by existing users

2. Initial Meetings

3. Feasibility Study Engaged
   

   • AAI Standard Fee $19,500

4. Viability Determined (Project proceeds or terminates)

5. Consulting Contract Established

   • current price range $60,000 - $100,000 new pricing three percent (3%) of construction costs

   • includes subsequent management contract – will not offer consulting only deals.

6. Management Contract Engages

   • current price structure

     • single pad – $75,000 + 25% over break-even

     • twin pad - $125,000 + 25% over break-even

     • tri pad – $150,000 + 25% over break-even

In select transactions, Advanced Arenas assumes the role as owner in addition to that as manager. These would be the “cream of the crop” transactions where our experience and expertise indicates a structure that possesses an extremely high probability of success. The bottom line remains that a management contract is excellent cash flow and that we will look to expand our earnings in any particular deal via ownership when the following exist:

• Strong demographics;

• Excellent pre-sold user commitments;

• Fair debt terms and leverage;

• Good partners, if any;

• Strong local support;

• Insulation from competition; and

• Excellent returns based on mid-level expectations in projections