Business Plan for

July 2011

Prepared by GH Consulting:

Joseph D Muzzin Jeffrey W Burt

Alyssa LochbaumDavid M Colleran

Nicholas JB Purich

Table of Contents

1.0 Executive Summary2.0 The Concept of Generation Health3.0 Our Members4.0 Operations 5.0 Initial Capital Outlays6.0 Human Resources 7.0 Sales & Marketing8.0 Financial Plan9.0 Additional Products10.0 Summary of the Business Plan

Appendices

I- Organization ChartII- Proposed LocationIII- Costs of Location & Facility ConstructionIV- Floor PlanV- HR: Job DescriptionsVI- Projected Income StatementVII- Projected Balance SheetVIII- Projected Cash FlowsIX- Support for Costs

1.0 Executive Summary

The underlying value of Generation Health is a safe environment for those aged 50 and above to improve their health. Our objective is to raise the debt and equity financing required to open a health club facility in Saskatoon.

Generation Health will employ a differentiation strategy by providing superior, targeted equipment and instruction for men and women aged 50 and above. Our clients are educated, community oriented, and health focused individuals. By focusing on the core principles of Geriatric health and wellness and by being a first-mover offering a health club catered to this population, Generation Health will be a sure success.

The company will be incorporated and the management team will consist of the three equity owners: Joseph Muzzin as Director of Finance and Accounting (B.Econ, CA), Jeffrey Burt (B.A. CA) as Director of Sales & Marketing and David Colleran (HKin, CA) Director of Operations. The owner-manager team will be actively involved in the business throughout the start-up phase and continuing operations. Currently, there are two additional equity investors holding board positions.

The facility will be built in the University Heights district of Saskatoon in close proximity to a large population of fifty-plus aged households with annual incomes averaging $80,000. The land will be purchased in July 2011, construction will begin late July and the facility open for operations January 1, 2012.

Promotional activities will include using an active marketing strategy to pursue advertising that targets the population aged 50 and above. Advertising will include print, radio and billboards. Our partnership marketing program will include brochures and visits to doctor’s offices, physiotherapy clinics and the Kinsmen Center. In addition, the facility will be free for anyone 50 and above for the month of January 2011 to stimulate interest and get members into the club.

The financial projections for Generation Health assume that club membership will increase on average by 32% per year for the first 5 years. The financial goal of the owner-managers is to earn a 25% return on investment. Based on growth projections, Generation Health will operate at 100% of capacity by 2018.

There are three key success factors:

Selling our clients on the value of a health club created for their specific age group Justifying our premium price by providing a first-class facility and quality instruction Maintaining member loyalty

2.0 The Concept Behind Generation Health

While working as a kinesiologist, David Colleran found that mainstream fitness facilities not only lacked the specialized equipment to work with his elderly clients, but that many of his clients also felt intimidated by the gym atmosphere. It these issues that inspired the concept of Generation Health.

Generation Health is based on the belief that those aged 50 and above want and require a non-intimidating environment along with specialized equipment & instruction. There are no fitness facilities or health clubs that have specifically catered to these requirements; therefore, we believe that this segment of the market is a blue ocean opportunity.

3.0 Our Members

Generation Health will target those aged 50-85 years of age who are educated, community oriented and looking to improve their health and well-being. Our members have high disposable income, free-time and are looking to meet like-minded individuals in a safe, caring environment.

The baby boomer generation is the fastest growing segment of our population in Canada so the growth potential of the business is incredible. Generation Health with start as one location in Saskatoon, SK and has the potential to grow to include franchises all over North America. Our locations will be strategically located in retirement communities and neighbourhoods that have a high proportion of those aged 50 and above.

4.0 The Operations Plan

How Generation Health Operates

Service we provide

Generation Fitness will be providing customized health programs and rehabilitation services to an older population. We are an alternative to visiting a physiotherapy clinic and a place where members can continue to achieve fitness goals beyond just rehabilitation. Onsite we provide experienced registered physiotherapists capable of assessing and administering rehabilitation programs. Every member is provided a minimum of one monthly session with our physiotherapists beyond their first physical assessment.

We expect our members to visit the gym on average 3 times per week. All members will be greeted and started on their regular workouts by our staff trainers. Our trainers are a mix of kinesiology graduates and general fitness trainers. Our kinesiology graduates will administer programs developed with the client and our physiotherapists, keeping track of the client progress. As our clients become more mobile, we will transition them to work more with our general fitness staff and get them more involved with our

group classes. The goal is to give member the added attention they need to get motivated, encourage them to get involved with other members and develop to the point where they are confident, able bodied and self-motivated to live healthy lives.

Onsite, Generation Health will have low-impact, strength and balance focused equipment. The facility will house a pool to focus on developing healthy bodies in a safe environment. We will provide group classes, including spin, core strength, and aerobics. Our facility is unique in that it utilizes distinctive equipment and highly educated and qualified staff to provide training and rehabilitation.

The lockers rooms at Generation Health will also have steam rooms for members to relax after their workouts.

Legal Structure

Generation Health will be incorporated to allow for increased protection against liability, ease in transfer of ownership as well as to utilize the deferral of taxes and the use of the small business deduction on active business income.

Location

Our Gym will be located in University Heights Square. This location is new and has not yet been developed which allows us the freedom to design an optimal facility. The location was chosen because of its accessibility, and the surrounding demographics. University Heights Square is located on the corner of Attridge Dr. and McOrmond Rd. making it easy to access by both car and public transit. There is ample parking with a ratio of one spot per five square feet of space.

The location is surrounded by six established neighbourhoods and one proposed high income neighbourhood within a three kilometre radius. See Appendix II for location map.

Floor Plan

The proposed facility is currently a vacant lot, the lot purchase ($700,000) and construction costs ($1.3 million) for the facility will be $1.93 million including legal, permitting, and all other related costs. The equipment costs ($102,000), pool installation ($225,000) for the facility, and all internal work on the facility ($19,000) will cost $0.35 million. Basic construction plans showing the gym layout are shown in the attached floor plan (Appendix IV). The Gym will be a clean, welcoming and energized environment where members will be motivated and encouraged to succeed in developing their health and well-being. The Building provides the following functionality within the 11,600 square feet of space:

Fitness Studio (860sqft):

Area for group classes:o Spino Core and Sculpt o Yogao Aerobics

The room has a capacity of 20 people for a class

Stretching Area (700sqft):

Area for stretching, core work, and fitness assessments The area is between the gym and lockers rooms and is the last area member will walk by before

they leave to remind them to stretch out before leaving. All of the mobile equipment such as, medicine balls, Thera bands, balance boards, etc. are kept here.

General Gym Area (2,750sqft)

Area for larger equipment. There are three distinct subareas

o Aerobic equipmento Balance equipment o Strength training equipment

Locker Rooms (2,400sqft)

Area for member to shower change and have a steam This area has adequate storage for the full 2,000 members to store belongings between visits

and lock up their belongings while they work out.

Pool Area (3,200sqft)

Area for aqua-classes including:o Water runningo Water weight trainingo Swimming classes

The pool area provides a low weight bearing environment for rehabilitation and training. This allows Generation Health to provide rehabilitation and exercise training to a wider spectrum of people at different fitness levels.

Capacity Limits

The gym itself has a membership capacity of 2,000 members.

Fitness classes are not registered therefore customers attend on a first-come, first-serve basis. There is room for 20 -25 members per class. We will run 3 classes per day, which will be led by a general fitness instructor.

Changes in the future

Based on gym enrolment, Generation Health will adapt and scale our staff to our member’s needs.

5.0 Initial Capital Outlays

Land

After assessing the available real estate in the University Heights area, it has been determined that the best available option for the new facility is an empty lot at 1804 McOrmond Rd. The location and capacity at this proposed location will allow Generation Health to adequately capture its market. The lot is situated between a mature neighbourhood and newly developed rapidly growing region of Saskatoon to the North East of Downtown. The total cost of the land is estimated to be $700,000 based on recent sales of similar lots (one acre commercial property) in University Heights that have sold for $600,000-$800,000

Construction

The facility will be built from scratch and will include a new pool. Construction costs are estimated at $1.2 million (see Appendix III).

Computer Hardware and Software

One stand-alone system and a cash drawer will be at the front of desk to track member’ attendance and payment methods as well as contact information. This front desk system will be linked to the 5 office computers behind the front desk. The office computers are for the 3 managers, sales agent, and the physiotherapists and will be used for administrative purposes. All systems will run QuickBooks and Total Security Anti-virus software. Using QuickBooks allows for all computers to easily be integrated. The QuickBooks software we have purchased is capable of tracking all purchases and customer information. We anticipated the computers and software will be upgraded every two years. A printer/scanner/fax will also be purchased for use in the office.

Furniture and Fixtures

The budget for furniture and fixtures will be $5,000. Desks and chairs will be purchased for the office and reception area. Members will be able to sit, relax and interact with other members or instructors before or after their workouts and classes. Decorative fixtures will be purchased to enhance the aesthetics of the facility. Cost Information is detailed in Appendix IX.

Equipment

Equipment expenditures will include the purchase of various aerobic, strength trainings and balance equipment, as well as electronics. Cost Information is detailed in Appendix IX.

Working Capital

The Facility will require minimal working capital as we do not focus on front desk supplement sales but instead on our gym membership for revenues. We will have supplements, and home gym equipment available for sale, which will constitute our working capital. The initial payment of initiation fees and prepayment of memberships will create negative working capital and will actually provide financing.

6.0 The Human Resources Plan

Organizational Structure:

Initially, Generation Health will operate with the three key executives leading Finance & Accounting, Sales & Marketing, and Operations. Please refer to Appendix I for organizational structure for the first 6 months of start-up.

Staffing levels are scalable and the club will aim to have a ratio of 1 employee to 8 members on average throughout the day (excluding times with group classes where the ratio will be closer to 1 employee to 12 members). Position descriptions are detailed in Appendix V.

Staffing Levels:Sales and administrative positions will operate on a standard 40 hour work week with some flexibility over work hours provided they are completing their duties. Fitness positions will be staffed in such a way that there is always either a kinesiologist or physiotherapist on duty. Both structures allow some flexibility for staff.

The staffing levels are projected to support a membership base of 1,500-2,000. Administrative and sales staff will support for up to 4,000 members. Membership growth beyond 2,000 will require one of each type of fitness professional (ie. Physiotherapist, Kinesiologist, General Trainer) per 1,000 members.

Training & Development:

TrainingInitial training will consist of a weeklong seminar style workshop where participants are directed in how to utilize the range of in-house resources to provide high quality service to all patrons. This training will involve all staff to build a sense of camaraderie amongst them. It will be led by the management team and will provide a relaxed atmosphere to help all staff understand the business strategy.

Subsequent training of new or replacement staff will be conducted on the job through shadowing existing staff for one to two full weeks as needed.

Additional training programs will not be needed as professional staff will be qualified and/or experienced in their specific field. The company will support field specific education delivered externally as needed.

DevelopmentEach staff member will be mentored and coached by their direct manager. Managers will provide on-the-job feedback monthly and as needed as well as formal annual feedback. Staff will be encourage to pursue relevant certifications such as offered through the Certified Professional Trainer Network.

HR Strategy:

The company will focus on hiring and retaining top Geriatric health and fitness training personnel. Our value proposition to these staff is the opportunity to work in their chosen field while working with

customers who benefit greatly from their services – more so than a younger demographic. Further, we provide higher fixed compensation than many mainstream fitness facilities and clinics, adding to the level of income security.

To encourage all staff to achieve high performance, the company anticipates using a bonus pool to be allocated based on a percentage of salaries and contingent on performance. The bonus pool will also encourage staff retention.

Our staff will have a standard benefit package (Health and Dental Insurance valued at approximately 5% of salary each) with the added benefit of full gym and service access.

As the business will be open fewer hours than many competitors, staff will have a more predictable work week compared to similar positions in the industry. Further, our plan to offer non-fitness staff flexibility in their work week will encourage a balanced lifestyle.

Shareholders’ Agreement:Key Features

- Buyout Clause Current shareholders have first right of refusal to purchase a proportionate share of the

company ownership being sold If a sale price cannot be agreed upon, the parties will mutually appoint a business

valuator who will provide a binding valuation- Board of Directors

The board of directors will consist of five individuals, at least three of whom are independent of management

Each shareholder is entitled to nominate and elect directors by vote- Expenditures

All expenditures over $50,000 must be approved by the board The board approves annual bonus allocations The board approves all management salaries

- Financing Any new share issuances must be approved by the board All borrowing agreements must be approved by the board

7.0 The Marketing Plan

Industry Overview

Opening a business in Saskatoon is an opportunity that we are very excited about. According to Colliers Canada’s Real Estate Review and Forecast Highlights, Saskatoon had Canada’s second largest GDP growth in 2010 at 4.5%. Saskatoon has experience d steady growth over the past years and is projected

to be a leader in Canada into 2011. We have looked at the demographic of the city and feel that our health club will be great alternative for the aging demographic in Saskatoon.

Furthermore, there has been a growing awareness of the importance of a health in order to maintain an active lifestyle into retirement. We have focused our marketing campaign as a promotion of a healthy lifestyle that will allow members to fully embrace their pursuits in life.

As part of our market entrance strategy evaluation, we have provided a detailed analysis of the market we are entering, our main competitors and how they will react. We have identified the risks that we will need to mitigate, and the risks that we believe are inherent in the business and we will have to overcome with our unique experience that we provide to members.

Products and Services

Generation Health will be differentiated from other fitness facilities in the fact that we are providing an experience to customers that will be unique from other competitors. Our services will be increased from our competitors as we are providing kinesiologists, physiotherapists and personal trainers on site at all times. This will enable our members to have access to the newest techniques in maintaining a healthy lifestyle, and the support necessary to ensure member safety.

Our facility will include the latest professional cardio, aerobic, balance, water fitness, and core strength equipment. As seen in our gym floor plan, our facility will include a fitness pool that will enable our members to work out in a low impact manner. This facility will meet the needs of some of our members that cannot workout in a traditional manner due to their joints or other injuries that they have accumulated throughout their life.

Our fitness staff are fully qualified fitness professionals that will be provide our members with personalized workout plans and will be present to motivate members to continually focus on their health and well being. Our staff will be hired based on personality and experience in order to provide members with a positive and fun atmosphere in the health club.

Demographics

Our pricing strategy is based on the demographics of the population that we are targeting. We have selected the location of our facility based on the availability of open land in affluent neighbourhood with an elderly population. The location has been chosen in a central location in University Heights. We gathered data from the 2006 census which is the most recent census data available. The average household income from the data in the neighbourhood was $77,000 which would equate to $81,000 with inflation of 1% per year. The location has had significant development and the prospect for future development is strong with new surrounding subdivisions planned.

We also expect that we will be targeting elderly populations in the neighbouring districts of Nutana, Lakewood and Lawson Heights. These demographics are all have income levels above the average in Saskatoon and have a total population over 45 years old of 57,680. We are looking to capture 3.5% of this market in our facility.

Price

We have based the pricing of our facility at rates higher than our competitors due to the fact that we are catering to a more affluent population and providing increased services. The cost of physiotherapy can be upwards of $100 per session and we are including physiotherapy with our membership. The services will be provided on a reserved basis. The pricing will also reflect the group fitness classes included as well as the structured work out plans for each individual member.

Our pricing will be $150 per month and an initiation fee of $250 to join the gym. We feel that the demographic that we are targeting will not be concerned with the premium price due to increased services, knowledge of staff, the facility amenities and the atmosphere that we are creating at the health club.

Promotion

Our promotion strategy at Generation Fitness will be very front loaded in the first year. The following years will be reflective of 2013 adjusted for 1% of inflation. The following table outlines the costs we are planning for Generation Health.

Marketing and Advertising Costs:

2012 (beginning Nov. 2011) 2013Newspaper Advertisements $10,000 $5,000Online Newspaper Advertisements $10,000 $5,050Radio Advertisements $1,000 $0Radio Advertisements year airtime costs $8,000 $8,080Brochures $1,500 $1,515Business Cards $490 $494.90Website set-up $10,000 $0Website maintenance $1,250 $1,262.50

TOTAL MARKETING COSTS $42,240.00 $21,402.40

We plan on an intense marketing campaign prior to opening the facility to gain a strong base for the business to get off the ground. In order to get our base membership up to 270 people in year 1 and 500 in year 2 we will need a strong advertising campaign in the first year. After the first initial push we feel that the experience we provide to members will be a positive experience that will spread through word of mouth. The experience that we provide and the reputation we develop will be that of a premium health and fitness club that will provide us with increased memberships.

In addition to the costs that are above, we plan to have a strong internal marketing campaign whereby our employees will use word of mouth with contacts in their industry. We plan on providing free use of the facilities to doctors in the area with the hope that doctors will begin to refer patients to our facility for the physiotherapy services and the ongoing benefits of maintaining a healthy and active lifestyle when people get older.

Competitor Analysis

The following diagram shows our main competitors in the market:

We feel that we are providing a premium health club facility that is unique from all other facilities in the area. There is no other facility that caters to the demographics we are targeting. Our facility provides physiotherapy services to our members which is unique to our club. Our price is higher than our fitness competitors; however, the cost of purchasing a membership to a competitor and paying for physiotherapy services and personal training sessions is far in excess of our membership prices.

The following table outlines the costs of each of our competitors:

Competitors Location Services PriceU of S PAC 87 Campus Drive, SK Cardio equipment, free

weights, machines, pool, racquetball courts, core strength equipment, few classes

$45 per month

World Gym 431 Nelson Rd3110 Clarence Ave S

Fitness classes, Yoga, tanning, steam room, towel service, cardio equipment, free weights

$100 initiation and $90 per month

Mawson Health & Fitness

119 105th Street East Group fitness, Cardio equipment, free weights, Child care, yoga and Pilates, personal training, Iron Core workouts, 4 studios and health advice

$75 per month

Physiotherapists Various Locations Structured to the needs of the client

$70 - $100 per visit

We feel that we have priced our memberships reasonably according to the services we will provide. Once we enter the market, we do not anticipate that our competitors will change their operations significantly. The U of S PAC will not change any of their operations as the facility is catering to university athletes, students, faculty and staff. The demographics they are targeting are outside of our focus. World Gym also has a different target market that focuses on a younger generation of extremely fit individuals that are focused on performance rather than maintenance fitness.

Physiotherapists will not have a reaction as they rely on doctor referrals. Their business is entirely based on injury and recovery. Our facility will also be available for injury and recovery purposes; however we are also providing a general and preventative fitness focus.

Mawson Health & Fitness is anticipated to have the greatest reaction to Generation Health entering the market. They focus their club on group fitness activities and they may begin to cater some of their classes to the elderly groups. We feel that the risk that Mawson changes the programs they offer to target our demographic can mitigated with the additional services that we have that directly cater to our focus demographic. Our facility will be available our focus market at all times, not just at specific times when classes have been scheduled. Furthermore our facility provides more focused training and individual interaction with our fitness professionals.

8.0 The Financial Plan

Financing

Generation health will initially be financed with $1 million equity and $1.35 million long-term bank debt. We have obtained $100,000 from each of the five investors that comprise GH Consulting. We are offering to sell 49.9% ownership of the business to an additional investor for $500,000.

We have prepared pro-forma financial statements based on operational and marketing plans previously discussed. The first spreadsheet represents our sales and cost of sales projections based on our marketing research. Additionally, we have researched industry accepted gross margin rates for Physiotherapy and pro-shop sales which we have included in our projections. Refer to the monthly first year sales projections and 10 year sales projection spreadsheets in Appendix VI.

Operations

Revenues and costs of sales have been derived from our marketing plan while all operational expenses and our capital budget have been derived from our operations plan. Additionally, our payroll expenses have been derived from our detailed human resources plan. We have incorporated inflation rates of 1% into our operation expenses. It should also be noted that we have included tax loss carry-forward amounts, in addition to qualifying for the small business tax discount (16%) on the first $500,000 of annual income.

Cost of Sales

Cost of merchandise sales is immaterial as the sale of merchandise is not part of Generation Health’ core business. The cost of sales from membership revenues includes an allocation of overhead, staff wages, and an allocation of physiotherapist’s salaries.

Operating Expense

A 10 year projection of the expected operating costs for Generation Health has been prepared in Appendix VI. Notes in the spreadsheet explain how the item is calculated and what it relates to.

Expected annual operating expenses begin in 2012 with $1.2 Million and increased each year for inflation estimated at 1%. The major expenses are as follows:

Amortization: All capital assets will be amortized using estimated useful lives: Building: 30 years Equipment and furniture: 5 -10 year Computer Equipment: 2 years

Salaries and wages: The staff at Generation Fitness is essential to providing customers with the quality healthcare and motivation to develop the overall experience of the gym. A summary of management salaries can be seen in the organization chart (Appendix 1). The staff will be paid $20, $17, or $15 per hour based on their role. The number of waged employees will be scaled up based on enrolment. Both salaried and wage based employees’ remuneration will increase 1% annually for inflation.

Interest on long term debt: The debt service costs are associated with the bank loan attained for $1,350,000 for the building and the land and a $780,000 line of credit. The interest rate for the

10 year mortgage is prime + 7%, which is 10%. The interest rate for our line of credit is prime + 9%, which is 12%. These rates are conservative and we will likely be able to negotiate lower rates.

Refer to the attached Amortization and CCA schedules for all supporting calculations (Appendix IX).

From a capital budgeting perspective, equipment will be replaced after its useful life. As can be seen in the cash flow statement, we have included capital replacement costs for our 2 year, and 5 year depreciable capital assets.

As discussed earlier, we have provided $500,000 of equity financing ourselves, and are asking for an additional $500,000 for 44% of our business. With this paid-in capital, we will require an additional $1.35 million in long term debt (10% interest rate) and $780,000 (12% interest rate) of short term financing over the first 2 full years of operation. As displayed by the cash flow appended (Appendix VIII), we intend to pay the entire amount of debt by our 6th year of operation (2017).

Our payback period will be in our 7th year of operation as we will have paid our entire debt principal in the previous year and will have earned additional income greater than our initial $1 million equity investment.

After initial losses during the membership building phase, we project return on equity ranging from 15% (year three) to 37% (year four). See Appendix VI for details.

Based on our projected cash flows during the initial ten years of operations, our IRR is 28%, and our NPV at 25% is $161,000 (Appendix VI). These projected results are driven by the significant cash flow that Generation Health will produce after the initial capital outlays.

Sensitivity Analysis      

 Worst Case

Conservative Base Best Case

Interest Rate 14% 10% 6%IRR 32% 33% 35%

Payback Period Year 7 Year 7 Year 6   

Membership Fee 100 150 175IRR 17% 33% 42%

Payback Period Year 9 Year 7 Year 6   

Enrollment Growth 15% 25% 40%IRR 18% 33% 34%

Payback Period Year 9 Year 7 Year 6*Sustainable growth rate after 2nd year of operations, up to capacity of 2000

Referring to the above analysis, the variables that will most affect the return on investment are Membership Fees and Enrolment. Interest costs did not significantly affect our analysis because our initial estimates of 10% and 12% were fairly conservative given that they are secured with capital assets.

The majority of the costs are fixed (or largely fixed) so changes in costs do not pose a significant risk to the success of Generation Health.

We will be undertaking significant marketing efforts as detailed in the marketing plan in order to mitigate the risk that we do not attain our target membership numbers. We will train staff to deliver exceptional service and provide high-end equipment to justify our position as a premium health club.

9.0 Additional Services

Other products that will be available at the health club will be from our pro-shop at the front desk of the facility. We will sell health supplements that promote healthy eating and making sure that members are getting the daily vitamin and nutrient intake. Our fitness professionals will be able to recommend supplements that can help our member’s daily lives. Furthermore, we will sell work-out attire (t-shirts, shorts, sweaters, jackets, ect.) at reasonable prices that will also help to contribute to our marketing of Generation Health. Finally we will sell mats, rubber tension bands, and bosu balls that members may wish to purchase for use at home or when are away out of town or cannot make it to the gym.

10.0 Business Plan Summary & Conclusion

Generation Health is a business concept that will take Saskatoon by storm. It offers premium health services to a growing demographic and faces virtually no competition. Due to the high degree of operating leverage, the business will offer very strong operating cash flow once capital asset financing is repaid.

The initial financing require to start the business will be $2.35 million comprised of $1 million equity an $1.35 million debt. We will require an additional $800,000 of short-term financing to fund losses in the first three years of operations, at which point the business will become cash flow positive. Through our use of both debt and equity financing, we will be able to generate a high return on equity.

The business will be managed by an experienced group of professionals, with a strong board of directors to provide oversight. Each member of the management team and the initial two independent directors have made significant personal investments in Generation Health demonstrating their commitment to the business and dedication to its success. The risk of the business is further mitigated by the versatility of the capital assets, and the high value of the land and building in a popular and growing area of Saskatoon.

With an IRR of 28%, Generation Health is an exciting investment opportunity that offers significant growth opportunities with a risk-mitigating asset base.

Appendix I- Organizational Chart at Inception

Appendix II- Location in Saskatoon, SK

Appendix III- Cost of Location & Facility Construction

Appendix IV- Floor Plan

Appendix V - Job Descriptions

Board of Directors

Monthly- Monitor customer satisfaction- Approve any significant capital expenditures- Approve financial reporting package

Annually- Review the performance of the management team- Review corporate strategy and market position for any necessary changes

Director of Finance & Accounting

Daily- Oversee and approve the work of the staff accountant- Process payments of bills and invoices

Monthly- Process monthly payroll- Prepare monthly reporting packages for the Board- Manage cash balances and ensure company maintains adequate liquidity- Schedule reception

Annually- Review and approve annual financial statements- Serve as a point of contact for the financial statement auditors- Review and submit necessary tax filings- Manage all necessary regulatory filings- Review performance of Contract Bookkeeper and customer service/reception

Contract BookkeeperDaily

- Process basic accounting transactions- Manage A/R and A/P

Monthly/Quarterly- Support the Finance and Administration role in monthly reporting- Prepare GST and PST returns

Annually- Assist in the preparation of financial statements- Assist with tax filings-

Director of Sales & MarketingDaily

- Develop and manage a marketing strategy- Create content for the website- Manage social media- Provide oversight to sales staff

Monthly- Establish strategic partnerships to generate revenue growth- Seek new revenue generating products or services to compliment the gym’s core offerings

Annually- Develop and manage a marketing strategy- Review performance of sales agents

Sales AgentDaily

- Generate new membership sales- Attend community events with a high concentration of the gym’s key demographic- Distribute promotional materials- Provide support to all marketing initiatives

Monthly- Develop plans to meet sales targets

Operations ManagerDaily

- Provide oversight and leadership over therapists, kinesiologists and trainers- Address any customer concerns or problems

Monthly/As Needed- Schedule fitness staff- Hire/Fire fitness staff- Schedule classes (assess customer preferences)- Assess and coordinate equipment maintenance needs and additions

Annually- Assess staff performance- Participate in capital budgeting

PhysiotherapistDaily

- Provide basic physiotherapy services to customers- Assess workout plans for customers with limiting injuries

Kinesiologist Daily

- Develop workout plans for customers- Review customers’ workout plans for progress

- Monitor performance of customers and determine if their plans are appropriate

General Fitness trainerWeekly

- Create class programs to be delivered- Deliver weekly classes

Customer Service/ReceptionDaily

- Greet customers- Ensure all facility users have appropriately paid- Address or direct customer queries to appropriate staff- Handle telephone calls and general email inquiries- Handle customer renewals and payments as needed