1. © 2005 Les Mills International Limited REPORTING

2. © 2005 Les Mills International Limited Current Reporting Monthly reporting of licensed clubs and programs using templates drives the invoicing/payment cycle Monthly reporting of cancellations using templates In addition the distribution contracts provide for: - Quarterly sales and marketing report - Quarterly accounting report - License Report twice a year with details of clubs and license fees - Training Report twice a year with details of trainers, instructors, assessors - Annual report on cost of living

3. © 2005 Les Mills International Limited Proposed Reporting We suggest that, instead of enforcing the detailed contractual requirements we identify the information that Les Mills is really interested in and make it easier for Distributors to provide this information. Les Mills is interested in: - Information about clubs, where they are located, what programs they take and what they are paying for those programs - Information about instructors and trainers, where they live and what programs they are trained in - Information about Distributors’ businesses, how they are structured (who the staff are), their plans for sales and marketing.

4. © 2005 Les Mills International Limited Trainer and Instructor Report The report would be provided twice a year. The template for the report would seek details of: - The name and contact details - The programs certified and their certification status For each trainer, assessor and instructor.

5. © 2005 Les Mills International Limited License Report The report would be provided twice a year: The template for the report would seek details of: - The name and contact details of the club - The programs that it is licensed to take and the license fees payable For each licensed club

6. © 2005 Les Mills International Limited Annual Report We seek Distributors’ views on the content of an annual report (related to the Les Mills business only) which might include: - Details of staff structure - The annual sales plan and targets - The marketing plan and initiatives - Insurance arrangements The aim would be to produce a document which would facilitate shared planning and closer working relations.