<Q George Walsh>: Okay, good. Mark, you mentioned possibly looking at either you
mentioned your headquarters. I dont know if you mean an expansion, or looking for a new location,
or a new lease. Can you just elaborate on that a bit?
<A Mark C. Layton>: Yes, were operating at capacity or maybe above in terms of our office
space at this point in time. Weve been in the current facilities that were in here for over 20
years at this point. So we have a bit of a tired infrastructure in terms of the office space in
here that needs to be addressed as well. But the biggest issue really is just to be certain that we
can provide the capacity for our people to be able to work. So were evaluating all the options.
Staying here, we might relocate somewhere close. It will just depend on what kind of offers we see
from the various landlords and municipalities that are interested in our presence.
<Q George Walsh>: Okay. Well, is the market down in that office space is such that youd
be in a good position to make a deal or just curious of the real estate market?
<A Mark C. Layton>: Yeah, wed not expect any other than maybe some one-time expenses
related to the moving, well expect that well be at or better than our current rental rates in the
things that were doing. The real key for us, particularly in a call center area is that, we have
seen an ability to be able to negotiate and some things that were working on. More flexibility for
us to be able to expand and contract to the extent that we get new client deals or they have
immediate needs for space, or as does occasionally happen in there, we lose a client relationship
for whatever reason. We dont want to be in a situation where we are tied down with a lot of excess
capacity or not able to or boxed in and not able to grow quickly with that. So fortunately here
in Dallas, the real estate market is such, particularly in the downtown sector where there is a lot
of opportunity and a lot of supply for us to be able to work with and landlords that are willing to
work with us on the terms that we want.
<Q George Walsh>: Okay very good. And just in reference to the previous question asking
about clients and landing the big clients. In terms of the definition that you are using for
pipeline, can you just put the timeline associated to that when you put something in the pipeline
as you define it there?
<A Mark C. Layton>: Yes so basically over $50 million is one year of our clients projected
as our client gives us their projections for gross merchandise revenue, if you will, and then we
lay our fees against that. So that over $50 million, if we were to win at all, wed expect in one
year to book $50 million of service fees on that one year. Now typically, the contracts are in the
three to five-year range that we see. So the actual win value is probably at least three times the
amount in terms to the extent that if we can win all that business.
<A Thomas J. Madden>: And that $50 million includes outstanding proposals that have
actually been provided to the client based on a specific request for them for a solution being
<A Mark C. Layton>: Right. Yes, we dont include anything in the pipeline that hasnt been
<Q George Walsh>: Okay. So its a proposal. So its something thats at that theoretically
one year point as you were talking about before. Thats where its moved along, its a proposal
that still you know the max would be a decision made within a year. Is that reasonable?
<A Michael Willoughby>: Yeah. When youre talking about businesses thats already been
proposed, thats well within that one-year sales cycle.
<Q George Walsh>: Okay.
<A Michael Willoughby>: We would look at probably an average of two to three months
remaining from that point of proposal to a decision.