This document outlines the business model for Physical Activity Pharmacy dba ExerWellness Community, which connects individuals to local fitness professionals and wellness programming. It aims to address the problems of lack of exercise prescription and a focus on sickness over wellness in healthcare. The model generates revenue through setup fees for wellness platforms, monthly member subscriptions, and a share of data sales. It will pilot in Central Oregon by matching individuals to wellness programs through employers, leaders, and clubs.

1. Physical Activity Pharmacy
dba ExerWellness Community
Business Model Overview
Judy Shasek
PA Pharmacy – Founder/CEO

2. PROBLEM:
• Exercise is the most cost-effective medicine
• Exercise is not being prescribed
• Current healthcare is actually “sick care”
• Individuals are frustrated and want a solution they can “own”
Physical activity powers prevention
PREVENTION
can create cost savings and greater ROI
for all stakeholders
Confidential August 9, 2012 2

3. Market Landscape
Compared with active individuals,
a sedentary lifestyle costs
$1500 more per year for healthcare-
Quality of life “costs” are more subtle
• What matters to people?
• Quality of life
• Increased productivity
• Reduction in use of medication
• Healthcare cost savings
Anderson LH, Martinson BC, Crain AL. Health care charges associated with physical inactivity, overweight, and obesity. Prev Chronic
Dis 2005;2:A09.
Confidential August 9, 2012 3

4. SOLUTION:
Connecting individuals to local fitness professionals,
cost effective programming, social network support
and community wellness culture change
Original concept changed -
Driven by individual and community need
Confidential August 9, 2012 4

5. How it Works…
Database of Hyper-Local Programs and Professionals:
Accredited professionals / wellness destinations
1 2 3
M
W
T
T
F
ExerWellness Hyper-Local Support Measure Outcomes
Diverse physical activity Match individuals and
Health & user experience
options available for all ages wellness communities
results and data
and conditions both online and real-world
Confidential August 9, 2012 5

6. What is the business model?
Social Currency
Social Networks
1 2 3
PA Pharmacy PA Pharmacy
Local Community Consumer- User
Connection CommonSenses Clients - Community
Devices And Sponsors
sensors ActiveSenses
Local
ExerWellness
Subscription fees
Administer & Revenue share Leaders &
Wellness Manage Sales of data Destination
ExerWellness
Gamification Services
Partners
Platforms
And Apps
Data
Confidential August 9, 2012 6

7. Business Model Detail
• Platforms, apps, sensors and devices are prevalent
• Quantifying exercise is where value is derived
• Wellness data is a valuable commodity
• Engagement-incentive-motivation is challenging
• Connecting with an individual’s social network is key
• Community culture change is important
Confidential August 9, 2012 7

8. Business Model Detail
Gamification of Wellness
Platforms:
• Depend on subscription memberships
• Rely on online coaching and HRA
• Engage upwards of 85% during the first 6-8 weeks
or during challenges
• Have a compliance/participation drop-off to 18-30%
after 6-8 weeks (self-reported by many platforms)
• Require a subscribing population of approx. 5000 to
start
• “FREE” services are generally self-reporting, thus do
not yield valuable data on target populations
• Those that do use devices or sensors for logging
activity are usually limited in the variety or number
of devices they can accommodate
Confidential August 9, 2012 8

9. Business Model Detail
PA Pharmacy dba ExerWellness in a community can
deliver:
• A customer base across an entire geographic
community
• Real-world coaching and HRA provided by local
ExerWellness Leaders and participating destinations
(employee wellness, local fitness
centers, community learning wellness
programming)
• A more diverse set of “customers” from which to
derive subscription memberships
• One ExerWellness Community administrator
generating “group sales” to individuals, small
businesses, and employer groups (i.e. Chamber of
Commerce) unable to qualify for participation
otherwise
Confidential August 9, 2012 9

10. Business Model Detail
PA Pharmacy dba ExerWellness Community will be
compensated by:
• A one-time set-up fee share (per community) for
each “gamification of wellness” health platforms
used ($7500+)
• Between 50 cents and $1 per subscribing member
per month according to number of active
subscribers
• A revenue share on data collected and delivered to
Elbrys Networks for use with their CommonSenses
and/or Active Senses proprietary technology
• Monthly subscription fees from qualified
ExerWellness leaders -minimal revenue, but crucial.
A wellness professional cannot buy a listing or
membership, but once qualified, must subscribe to
PA Pharmacy to remain listed.
Confidential August 9, 2012 10

11. Proven Proprietary Infrastructure
Data Value Chain
Mobile & Web App Sensor Play Platform
Referral Oauth
PA Pharmacy Engine Telehealth
2.0
EMR
Services
Devices CommonSenses
And Mobile SDK CommonSenses
Sensors Services
Bio-metrics Localation PHR
Sensor Data Manager
Identity
AWS
Services
Android iOS Sensor Store
Wellness
Gamification
Platforms
And Apps
Social Media Value Chain
Regulated Data
Unregulated Data
Confidential August 9, 2012 11

12. Central Oregon ExerWellness Community: Pilot
Wellness Programs
Employers
ExerWellness
Leaders
Clubs
ExerWellness Community
Group Administrator
Sponsors (Judy Shasek) • Deliver subscribers to
platforms and apps
• Sustain revenue share
with Elbrys
• Create community
culture change
• Increase compliance
and long term exercise
Individuals logging
• Connecting across
community social
networks
Confidential August 9, 2012 12

13. Competition: Status Quo and Current
Compensation Models
• Insurance Processes
• Physician Compensation
• Fitness Industry: Spending millions
but missing out on “wellness”
Confidential August 9, 2012 13

14. The Product
• Group buying power for health apps and
platforms – online and customized
• Can connect with social network at
work, home, leisure – across community and
across generations

15. The Sales Tool: ExerWellness Workshop
ExerWellness Workshop
• ExerWellness Workshop: Information and social
connection as the “sales” format
• Can be accessed online, via video, at fitness clubs, in the
workplace or at community learning sites
• Complements existing wellness programs by providing
habit change and social network awareness
• Engages the “least active” harnessing the social
connections among “super node” individuals

16. The Product: Education, Connection, Hope of SUCCESS
+ ExerWellness Workshop
• One annual subscription fee to join the
ExerWellness Community Network
• Can be “sponsored” by employer
• Allows the individual “group buying” power

17. Advisory
Team
Cynthia Kane
Kane Healthcare
Consulting
Dr. Ernie Medina Dr. Brad A. Roy
Ph.D., FACSM, FACHE
MedPLay Technologies
Cary Wing, EdD
Exec Director at (MFA) Anthony Delli Colli
Member, American Council Continua Health Alliance
on Exercise (ACE) Elbrys Networks

18. Physical Activity Pharmacy
dba ExerWellness Community
Once the Central Oregon pilot is refined for systems
and processes, we can scale to other communities.
Our product concept facilitates sales and revenue
objectives of leading platforms and business models
in the wellness space driving long-term and
exponential return.
Judy Shasek
541-410-1478
papharmacy.shasek@gmail.com
http://pa-pharmacy.com
http://exerwellness.com