DRAFT PROPOSAL TEMPLATE FOR YMCA’S

SUGGESTED FOR USE AS FINAL PROPOSALAFTER SALES PRESENTATION IS COMPLETE

(NOTE: document formatting and graphics to be finalized after content is agreed upon)

Proposal for YMCA <Assoc Name><Y Logo>

Les Mills, the World’s Best Group Fitness company, is pleased to provide <Y Assoc Name> with the following Proposal. This proposal

outlines the services that Les Mills will deliver to the <Y Assoc Name>, advantages to the facilities and their members, all associated costs

and guide and timeline for execution.

What does Les Mills deliver? Eight World Class group fitness programs Management tools to measure and grow group fitness

department within business model Marketing resources to help drive retention while generating

further leads and referrals to grow facility membership Ongoing support tools to ensure that the Les Mills Group Fitness

Management System delivers a World Class experience to increase the health and well-being of your facility’s members

World Class instructor training and certification

How will Les Mills help our facility’s members?An independent research study by AC Nielsen revealed that, out of 1000 group fitness participants in the US:

Nearly 40% of these participants visited their facility 4 times a week to participate in Les Mills classes (this is more than double the IHRSA reported average of 1.5 visits by a member per week)

Les Mills group fitness participants average 3.4 visits to their chosen facility per week.

By becoming involved in Les Mills group fitness, participants create a sense of community with their fellow members while enjoying the benefits of a simple, fun and effective workout. Increased adherence to an exercise program improves their quality of life and overall well-being.

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How will Les Mills help our facility?The same AC Nielsen study revealed that:

92% of Les Mills group fitness participants would recommend the programs to friends and bring them along

74% of Les Mills group fitness participants would leave their current facility if they no longer offered Les Mills programming

By implementing the Les Mills Group Fitness System, your facility will enjoy both increased member retention and increased membership growth through the power of Les Mills programming. Not only will your membership numbers grow, but you will also learn through our Group Fitness Management Workshop:

How to more effectively manage your Group Fitness department by using a scorecard system

Maximize your timetable Recruit World Class instructors Organize great instructor training Develop the best studio you can afford Create a Group Fitness marketing plan Plan for success Appoint, or be, a great Group Fitness manager

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Service Agreement and Pricing(Pricing based on number of facilities initially licensing programs)

(this is draft, and will be finalized once US agencies have discussed and agreed)

Program 1 – 4 Branches

5 – 9 Branches 10+ Branches

1st Program $250/mo $250/mo $250/mo2nd Program $175/mo $150/mo $125/mo3rd Program $175/mo $125/mo $125/mo4th Program $125/mo $100/mo $ 50/mo5th Program $125/mo $100/mo $ 50/mo6th Program $ 50/mo $ 50/mo $ 25/mo7th Program $ 50/mo $ 50/mo $ 25/moBODYVIVE®($250/mo if first program)

$175/mo if 2nd through 8th

$150/mo if 2nd through 8th

$125/mo if 2nd through 8th

Les Mills will also provide on-site training for YMCA instructors by providing a standard 2 or 3 day weekend module for each program licensed. Pricing for the Initial Training Modules is as follows:

1 – 4 Branches: $2900 for 15 spots, which equals $290 per person for 10 with 5 spots free. Additional spots would be the standard $290 rate.

5 – 9 Branches: $2900 for 20 spots, which equals $290 per person for 10 spots with 10 spots free. Additional spots would be the standard $290 rate.

10+: $2900 for 30 spots, which equals $290 per person for 10 spots with 20 spots free. Additional spots would be the standard $290 rate.

What is included in License Fees?

Right for use of all Les Mills marketing materials, i.e. logos, banners, posters and music within the licensed facility.

o 1 – 6ft. cloth banner for each licensed programo 250 Getting Started Brochures to promote each programo 150 Free Class Passes to help promote programs and drive

more attendance/guest referralso 2 launch posters for each licensed program

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o 2 program specific quarterly posters (provided each quarter to coincide with new music release)

o Co-branding options to develop the image to fit your target market

Access to Les Mills Eclub – downloadable and customizable imagery to use for marketing your program and your facility.

A designated Club Coach to guide your facility through initial launch and assist your facility with management and marketing questions.

Recruitment tools available to assist your Fitness Director in finding World Class Group Fitness instructors.

Internet Instructor Finder that allows facilities to post instructor needs at your facility as well as search for local instructors who are certified and looking to teach classes

Promotion of your facility on our international website with a link to your facility’s own website.

Free Timetable Creator used to customize and brand your Group Fitness schedule with your facility’s logos as well as the Les Mills class logos.

Online community at www.lesmills.com that allows access for your facility management, your instructors and your members to network with the Les Mills Global Family of trainers, instructors and other members in over 74 countries and over 12,000 facilities world-wide.

Tools for Group Fitness Manager, Sales and Marketing Manager and Management Team

To assist the <YMCA Association> with a highly successful launch Les Mills will deliver customized Group Fitness Management Seminars where your staff will learn the Eight Key Elements to drive your group fitness growth; how to implement a management system and use all available web resources; how to cross promote in all other areas of the facility using marketing tools; and how to grow and develop a world class instructor team. The director and management staff from each facility will be provided this training free of charge to understand the training process and have great program specific leaders.

Equipment and Prices

BODYPUMP® Equipment

20 Vinyl Sets with rack $1,498.0020 Vinyl Sets $1199.00

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10 Vinyl Sets $ 599.00

20 set rack only $ 299.0010kg spike rack only $ 49.00

20 pk 1 kg plates $ 39.008 pk 2.5 kg plates $ 39.004pk 5 kg plates $ 39.002pk 10 kg plates $ 39.0040pk collars – snap lock $ 99.0040pk collars – spring $ 99.0010pk bars only $ 219.0040pk end caps $ 29.00

Contact details: Go to www.lesmills.com and click on the equipment tab to get a full price quote on barbells and place order or send email inquiries to barbells@lesmills.com.

Bikes: The preferred vendor is Body Bike International at www.body-bike.com

BODYVIVE® equipment:BODYVIVE® equipment is available through <agency name>. Please contact your account manager or info@<agency>.lesmillsusa.com for a quote.

This offer is subject to modification prior to entering into a final agreement. If you have any questions or comments, please contact <Account Mgr> name at <email & phone #>

Date

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