Updated Policy and Procedure Handbook - GoodLife Fitness

Policy and Procedure HandbookAcknowledgement Form_______________________________________________________Ensure you are using the most up to date versionBecause GoodLife has your wellbeing in mind, policies will require updating on a regularbasis. To ensure you are using the most up to date version of the Handbook, pleaserefer to the copy on the main page of SharePoint or on GoodLife Connect from the‘HOME’ tab under Shared Documents>Policies and Procedures>People Policies andProcedures for AssociatesWe ask that you please refrain from printing the Policy and Procedure Handbook._______________________________________________________________________________I have read, understand, and will abide by the policies and procedures that are outlined inthis Handbook.I understand that is my responsibility to make myself aware of any further updates topolicies and procedures, as they are issued.I further acknowledge that this manual and the information contained therein remainsconfidential.Associate Name: ________________________________________________________Associate Signature: _____________________________________________________Manager Signature: ______________________________________________________Club Name: _____________________________________________________________Date: ___________________________________________________________________This form must be printed and signed by the associate and manager and a copyplaced in the associate’s personnel file.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 3

Table of ContentsGoodLife’s Philosophy, Mission and Values ................................................................... 6GoodLife’s Philosophy ..................................................................................................... 6GoodLife’s Mission ........................................................................................................... 6GoodLife’s Values ............................................................................................................ 6Respecting Diversity at GoodLife ..................................................................................... 7Human Rights – a policy of Zero Tolerance ..................................................................... 7Respecting Diversity ........................................................................................................ 7Discrimination ................................................................................................................... 7Workplace Harassment .................................................................................................... 7Workplace Accommodation ........................................................................................... 11Accommodation of Religious Observances ................................................................... 12You’re Employment Relationship with GoodLife .......................................................... 14Length of Service Recognition Program ........................................................................ 14Hiring Non Canadian Citizens ........................................................................................ 16Performance Reviews .................................................................................................... 21Internal Hiring ................................................................................................................. 22Referral Bonus ............................................................................................................... 23On-boarding and Orientation .......................................................................................... 24Probationary Period ....................................................................................................... 25Discipline ........................................................................................................................ 26Termination .................................................................................................................... 26Compensation ................................................................................................................ 27Benefits Plan .................................................................................................................. 27Employee Assistance Program ...................................................................................... 31Reference Request ........................................................................................................ 32Working at the age of 65 and beyond ............................................................................ 32Relocation Reimbursement ............................................................................................ 34Statutory Holidays .......................................................................................................... 34Personal Trainers Not Permitted to Work on Statutory Holidays ................................... 35When you’re at Work ....................................................................................................... 37Hours of Work and Breaks ............................................................................................. 37Shift Durations ................................................................................................................ 38When you’re Not at Work ................................................................................................ 39Absenteeism .................................................................................................................. 39Leaves of Absence with Pay ........................................................................................... 40Vacation ......................................................................................................................... 40Time Off Tracking ........................................................................................................... 43Sick Leave ...................................................................................................................... 47Bereavement Leave ....................................................................................................... 47Voting Leave .................................................................................................................. 48Leaves of Absence without Pay ..................................................................................... 49Jury and Witness Leave ................................................................................................. 49Pregnancy Leave ........................................................................................................... 50Parental/Adoption Leave ................................................................................................ 52Pregnancy and Parental Leave Question and Answers ................................................. 53Personal Leave of Absence ........................................................................................... 59Personal Emergency Leave – Ontario Only ................................................................... 59Family Medical Leave .................................................................................................... 60Medical Leave of Absence ............................................................................................. 61Reservist Leave of Absence .......................................................................................... 62On the Job at GoodLife ................................................................................................... 63Member Health and Safety ............................................................................................ 63Inspections by Government Agencies ............................................................................ 65Canada Food Inspection Agency ................................................................................... 66Conduct and Behaviour .................................................................................................. 66Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 4

Child Pornography ......................................................................................................... 67Conflict of Interest .......................................................................................................... 68Confidentiality ................................................................................................................. 69Home Office Dress Code ............................................................................................... 70Associate Uniforms ........................................................................................................ 71Employment of Relatives ............................................................................................... 76Acceptance of Gifts ........................................................................................................ 77Smoking in the Workplace ............................................................................................. 77Scent Reduction ............................................................................................................. 78Email and Internet use ................................................................................................... 78Cell Phone, Blackberry and Laptop Use ........................................................................ 80Return of laptops and cell phones when on leave ......................................................... 83Travel Policy and Procedure .......................................................................................... 83Travel and Expense Reimbursement ............................................................................. 85Personal Calls ................................................................................................................ 87Incident Reporting .......................................................................................................... 87Associate Discount on Tanning and Pro Shop ............................................................... 88Associate and Family Memberships .............................................................................. 88Associate use of Child Minding ...................................................................................... 91Associate Sponsorship Requests .................................................................................. 92Reporting Suspected child abuse .................................................................................. 92Associate Theft .............................................................................................................. 93Corresponding Wage Increases and Position Status Changes to the Start of a PayPeriod ............................................................................................................................. 94Forms ................................................................................................................................ 96Pregnancy and Parental Leave Form ............................................................................ 96Associate Sponsorship Request Form ........................................................................... 98Request for Relocation Reimbursement ........................................................................ 99Associate Referral Form .............................................................................................. 100New Associate Referral Reward Form ......................................................................... 101Foreign Worker Acknowledgement Form ..................................................................... 102Associate Membership Agreement Form ..................................................................... 103E-mail and Internet Acknowledgement Form ............................................................... 104Leave of Absence Request Form ................................................................................. 105Free Resources Available in Canada ........................................................................... 106Dismissal Email ............................................................................................................ 108CARE Instructions to Redeem Associate and Family Memberships ........................... 109Assumption of Risk, Release, Waiver of Claim and Indemnity .................................... 121Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 5

GoodLife’s Philosophy, Mission and ValuesGoodLife’s Philosophy[back to top]Belong where caring individuals are committed to educating you to develop a moreenergetic lifestyle to increase fitness, longevity and fun.GoodLife’s Mission[back to top]A group of Fitness Clubs focused on exceptional service through C.C.S.S.V. (Care,Cleanliness, Sales, Service and Value) and M.C.I. (Measurable Constant Improvement).GoodLife’s Values[back to top]CareTrustIntegrityPeak AttitudeHappinessPassionPersonal FitnessConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 6

Respecting Diversity at GoodLifeHuman Rights – a policy of Zero Tolerance[back to top]GoodLife recognizes the right of every individual to equality of opportunity with respect totheir employment based upon their qualifications, and is committed to providing aworkplace in which all people are treated with dignity and respect. GoodLife supports theprinciples of, and complies with, all applicable human rights legislation and will not toleratebehaviour in the workplace that is contrary to applicable human rights legislation.Respecting Diversity[back to top]Commitment to a diverse workforce at GoodLife means commitment to embracing theunique talents and experiences every associate brings to the team. Our inclusive workenvironment means that all ideas, people, and practices are valued.We are all accountable for creating and maintaining a work environment that is free fromdiscrimination and harassment and treats all associates fairly. Discrimination andHarassment are not permitted by anyone, including Managers, co-workers, members,vendors, and suppliers. As such, it is your responsibility as a GoodLife associate to bringforth experiences or observations of discrimination and harassment without fear ofreprisal.GoodLife practices respect for human rights in its relationship with current and prospectiveassociates, current and prospective members, vendors, and suppliers and is incompliance with all applicable Human Right legislation.Discrimination[back to top]GoodLife is an Equal Employment Opportunity Employer and is committed to providing asafe, healthy, and positive work environment that is free from discrimination. Thisincludes, but is not limited to: recruitment, hiring, job placement, training, promotion,termination, transfer, layoff, recall, leave of absence and compensation.Discrimination may also include failure to reasonably accommodate the special needs ofan individual or group based on the prohibited grounds._______________________________________________________________________________Prohibited grounds of discrimination and harassmentProhibited grounds for discrimination and harassment are protected under the OntarioHuman Rights Code 5. (1), they include:Race, Ancestry, Place of Origin, Colour, Ethnic Origin, Citizenship, Creed, Sex, Sexual,Orientation, Age, Record of Offences, Marital Status, Family Status, Disabilities* Prohibited Grounds may vary slightly from Province to ProvinceWorkplace Harassment[back to top]The Canadian Human Rights Act and the Canada Labour Code protect us fromharassment and The Criminal Code protects us from physical and sexual assault.Harassment is defined as “engaging in a course of vexatious comment or conduct that isknown or ought to reasonably to be known to be unwelcome”.Associates do not have the right to harass anyone else, at work or in any situation relatedto employment. This policy is one step toward ensuring that GoodLife is a comfortableplace for all associates.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 7

The People Dept is Solely Responsible for Dealing with Harassment ComplaintsThe Associate Relations Team in the People Dept is solely responsible for acceptingcomplaints, conducting thorough investigations, deciding on an appropriate outcome andfor following up with the complainant and the associate accused.GoodLife treats all complaints of harassment seriously and acts on all complaints toensure that they are resolved quickly, confidentially, and fairly. Associates will bedisciplined up to and including termination if they harass a person or group of people.Managers are expected to act in accordance with this policy to end harassment.GoodLife is committed to providing a safe, healthy, and positive work environment forassociates. In doing so, we are dedicated to ensuring the workplace is free fromharassment._____________________________________________________________________________It’s O.K. to Defend YourselfIf someone behaves in a way that offends, harms, humiliates, or degrades you, it’s ok tolet that person know. If you feel that you can speak to that person, let them know how youfeel and that their behaviour is inappropriate. If they continue the behaviour, or you don’tfeel you can speak to the person directly, call or email the Associate Relations team forhelp.Speak Up!It’s very important to call the number below if you have been harassed, you become awareof any possible incidents, or believe that others have been subjected to discriminationand/or harassment; your call is completely confidential!1-800-790-9269, press 0 and ask the receptionist to transfer you to a member of theAssociate Relations team.associaterelations@goodlifefitness.com**Associates that feel they have been mistreated by a member should also call theHarassment number. Managers or associates of GoodLife that are approached by amember who feels they have been mistreated by an associate should also call theHarassment number._____________________________________________________________________________Associates must be prepared to supply the following information when filing a formalcomplaint with the People Dept:1. your (the complainant’s) name and position;2. the name and position of the alleged harasser;3. details of what happened;4. dates, times, and how often its occurred;5. where they happened; and6. the names of any witnesses._____________________________________________________________________________What is Harassment?Any unwelcome behaviour that degrades, demeans, humiliates, or embarrasses a personand that a reasonable person should have known would be unwelcome. Harassmentincludes verbal, written, visual, media exposure (e.g. email, advertisements), and physicalconduct that creates an intimidating, hostile, offensive, and poisoned work environment.It may be a single incident or continue over time. The Canadian Human Rights Actprotects associates from harassment that is related to their race, national or ethnic origin,colour, religion, age, sex, marital status, family status, disability, pardoned conviction, orsexual orientation.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 8

Examples of harassmentHarassment is any action that makes someone feel degraded, humiliated, orembarrassed. It includes, but is not limited to:• posters, cartoons, e-mail, telephone calls, conditions of employment that aredegrading, humiliating, or sexual, and requests;• unwelcome sexual remarks, invitations, or requests;• displays of sexually explicit, sexist, racist, or other offensive or derogatory material;• written or verbal abuse or threats;• practical jokes that embarrass or insult someone;• leering (suggestive staring) or other offensive gestures;• unwelcome physical contact, such as patting, touching, pinching, hitting;• patronizing or condescending behaviour;• humiliating an employee in front of co-workers;• abuse of authority that undermines someone’s performance or threatens her or hiscareer;• vandalism of personal property; and• physical or sexual assault.________________________________________________________________________What is Sexual Harassment?Sexual harassment includes unwelcome sexual contact and remarks, leering,inappropriate staring, unwelcome demands for dates, requests for sexual favours anddisplays of sexually offensive pictures or graffiti. Associates have a right to freedom fromsexual harassment in the workplace.Examples of Sexual HarassmentVerbal harassment:• Sexual comments, jokes, gestures, noises, propositions• Cat calls or whistling in a demeaning manner with sexual overtones.• Referring to an adult as "girl," "boy," "honey”, “sweetie”, or “babe”• Asking about sexual fantasies, preferences, or history• Making sexual comments about a person’s clothing, body, or looksNon-verbal harassment:• Sexual &/or derogatory comments about men/women on coffee mugs, hats,clothing, walls, computer screens, etc.• Making facial expressions, such as winking, throwing kisses, or licking lips• Making sexual gestures with hands & /or body movements• Letters, email, posters, gifts, &/or materials of a sexual nature• Invading a person’s body space, standing closer than appropriate or necessaryVisual• Magazines, calendars, posters, cartoons, drawings, or pictures of a sexual, racial,or ethnic nature• Computer graphics, e-mail, or messages of a sexual or racially charged nature.Screen savers• Display of sexual picturesPhysical Harassment:• Any physical unwanted touches• Deliberate sexual touching or brushing up against, or leaning over, or pinching• Touching or rubbing oneself sexually around or in the view of another person• Purposely brushing up against a person• Patting, goosing, caressing, or fondling• Tearing, pulling, yanking, a person’s clothing• Exposing herself/ himselfConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 9

Consequences of HarassmentGoodLife does not permit workplace harassment on or away from company premises,during work or non-working hours and will take all reasonable steps to eliminate anyharassment, or activity associated with it.Any associate, regardless of position, who harasses others whether it be a GoodLifeassociate or member, will be disciplined, up to and including termination. Any memberwho harasses either a GoodLife associate or another member, will have their membershiprevoked and will no longer be welcome on GoodLife premises.If someone files a formal complaint about an associate’s behaviour, the associate accusedwill have to participate in an investigation. The associate must cooperate, give theirperspective on what happened, and, if the investigation shows that the associate didharass another associate or group of associates, the associate will be expected to changetheir behaviour and will also be subject to disciplinary action up to and includingtermination for cause._____________________________________________________________________________Disciplinary Action for HarassersAn associate who harasses another associate or group of associates will be subject to oneor more of the following forms of discipline, depending on the severity of the harassment:• a written reprimand;• a suspension, with or without pay;• a transfer, if it is not reasonable for the associates involved to continue workingtogether;• dismissal• mandatory Employee Assistance referral• written apology to the associate who was harassedPlease Note: Suspending the accused associate with pay during the investigation may berequired in some cases.If the investigation does not find evidence to support the complaint, there will be nodocumentation concerning the complaint placed in the alleged harasser’s file. When theinvestigation reveals harassment did occur, the incident and the discipline that is imposedon the harasser will be recorded in the harasser’s file._____________________________________________________________________________Unsubstantiated complaintsIf an associate, in good faith, files a harassment complaint that is not supported byevidence gathered during an investigation, the complaint will be dismissed, and no recordof it will be put in the accused harasser’s file. As long as the complaint was made in goodfaith, there will be no penalty to the associate who complained, and no record in her or hisfile.Complaints made in bad faithIn the event that a complaint was made in bad faith (in other words, the associate makingit had absolutely no basis and deliberately and maliciously filed the complaint) thatassociate will be disciplined and a record of the incident will be put in her orhis file.Disciplinary action for an associate who complains in bad faith will be dealt with in thesame manner as a case of harassment and will depend on the seriousness of thesituation._____________________________________________________________________________ConfidentialityGoodLife will not disclose a complainant’s or alleged harasser’s name, or anycircumstances related to a complaint, to anyone, except as necessary to investigate thecomplaint or take disciplinary action related to the complaint, or as required by law.Managers involved in a complaint are reminded to keep all information confidential, exceptin the above circumstances.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 10

All associates have a responsibility to cooperate in the investigation of a harassmentcomplaint. Anyone who gives evidence in an investigation, or who is otherwise involved inthe process, must keep this information confidential, except as is necessary todeal effectively with the complaint. These are serious issues, and the privacy of associatesmust be respected. Even once a complaint is resolved, confidentiality and respect areimportant._____________________________________________________________________________RetaliationRetaliation or threat of retaliation is considered a serious disciplinary breach and is strictlyprohibited. Anyone who retaliates in any way against an associate who has complained ofharassment, given evidence in a harassment investigation, or been found guilty ofharassment, will themselves be considered guilty of harassment and dealt withaccordingly. Disciplinary action is the same as those assessed against harassers._____________________________________________________________________________Steps to Addressing a Complaint of HarassmentThe Associate Relations Team in the People Dept is solely responsible for acceptingcomplaints, conducting thorough investigations, deciding on an appropriate outcome andfor following up with the complainant and the associate accused.Managers must not attempt to conduct investigations or take any actions toward aharassment complaint.Managers must immediately report incidents or suspected incidents directly tothe Associate Relations team by calling or emailing:1-800-790-9269, press 0 and ask the receptionist to transfer you to a member of theAssociate Relations team.associaterelations@goodlifefitness.comA manager who fails to report allegations of discrimination or harassment, or whootherwise fails to deal properly with such allegations, may be subject to seriousdisciplinary action, up to and including immediate termination of employment for cause._____________________________________________________________________________Investigation and ResponseGoodLife takes allegations of harassment and discrimination very seriously, and willtake prompt action to thoroughly investigate allegations of discrimination and/orharassment.Based on the findings of the investigation, GoodLife will take immediate and appropriatecorrective action. If an associate is found to have engaged in prohibited conduct (asdefined by this policy), they will be subject to serious disciplinary action, up to andincluding immediate termination of employment for cause.If, however, after investigating the complaint of discrimination and/or harassment,GoodLife determines that the complaint was not bona fide or made in good faith, orthat any associate has provided false information during the complaint investigation,disciplinary action may be taken against that associate who filed the complaint or whoprovided false information.Workplace Accommodation[back to top]The duty to accommodate is the obligation to meaningfully incorporate diversity into theworkplace which involves eliminating or changing rules, policies, practices and behavioursthat discriminate against persons based on ancestry, place of origin, color, ethnic origin,citizenship, creed (religion), sex (includes pregnancy), sexual orientation, disability,Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 11

perceived disability, age, marital status, same-sex partnership status, family status, andrecord of offences._______________________________________________________________________________Removing barriersThe duty to accommodate recognizes that equal treatment excludes some people, whosuffer from discrimination because of their personal characteristics, such as race, religion,disability or family status. Accommodation removes barriers to full participation in theworkplace._______________________________________________________________________________Prominent grounds of the CodeThe Human Rights Code requires an effort, short of undue hardship, to accommodate theneeds of persons who are protected by the Code. It would be unfair to exclude someonefrom the workplace because their ‘Code protected’ needs are different from the majority.The principle of accommodation applies to all grounds of the Code, but certain groundsand issues arise frequently such as: employees with disabilities, older workers, employeeswith religious needs, pregnant women, and employees with family responsibilities._______________________________________________________________________________Associate ResponsibilitiesAssociates must communicate their need for accommodation to GoodLife. Associatesshould not assume that GoodLife knows about their need, or even suspects their need.Associates must:1. request accommodation;2. explain why accommodation is required, so that needs are known;3. make needs known, preferably in writing;4. answer questions or provide information regarding relevant restrictions orlimitations;5. participate in discussions regarding possible accommodation solutions;6. co-operate with any experts whose assistance is required;7. meet agreed-upon performance and job standards once accommodation isprovided;8. work with GoodLife on an ongoing basis to manage the accommodation process;9. discuss accommodation needs only with persons who need to know.Accommodation of Religious Observances[back to top]Religious ObservanceAssociates who celebrate their religion on days which would normally be working days willbe accommodated in order to practice their religion.This policy applies to all GoodLife associates and to all situations where an associatesreligious observance affects his/her employment and requires accommodation.Creed is a prohibited ground of discrimination under the Ontario Human Rights Code.Although it is not defined in the Code, Creed has been interpreted to mean “religiouscreed” or “religion.” While it is not possible to define these terms precisely, only beliefs,convictions and practices rooted in religion, as opposed to that that are secular, sociallybased or conscientiously held, are protected. Defined broadly, religion typically involves aparticular and comprehensive system of faith and worship. Religion also tends to involvethe belief in the divine, superhuman or controlling power. In essence, religion is aboutfreely and deeply held personal convictions or beliefs connected to an individual’s spiritualfaith and integrally linked to one’s self-definition and spiritual fulfillment.Requests for AccommodationGoodLife will accept all requests for accommodation of religious observances as bonafide,unless there is specific evidence to indicate an abuse of the policy.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 12

DefinitionsAccommodation: Accommodation is an adaptation or adjustment made to enable aperson to perform the essential duties or requirements of a position. The requirement,qualification or factor must be reasonable and bonafide in the circumstances.Religion or Creed: Creed is interpreted to mean religious creed or religion. It is defined asa professed system and confession of faith, including both beliefs and observances orworship. A belief in a God or gods, or a single supreme being or deity is not a requisite.Religious Observance: Religious observance refers to commitments or obligations basedon a person’s religion or creed. This can include, but is not limited to, the celebration ofreligious holidays, requirements concerning attire, prohibitions, or observances related toparticular events, eg. death of a family member.Undue Hardship: Reasonable accommodation must be granted to allow Associates tofulfill religious obligations, unless to do so would create an undue hardship. Determiningwhether a particular means of accommodation is reasonable, or creates an unduehardship, requires an assessment of factors including, but not limited to:• cost - undue hardship exists if the financial costs, related to accommodation of theneeds of the individual would alter the essential nature or would substantially affectthe viability of the organization responsible for the accommodation;• operational impact and morale;• treatment of other kinds of requests;• ability to alter the work schedule._____________________________________________________________________________ResponsibilitySupervisors and Managers are responsible for ensuring that this policy and the legislatedrequirements of the Ontario Human Rights Code are complied with._____________________________________________________________________________Steps to requesting accommodation for religious observances1. An Associate who requires accommodation for religious observances must make arequest for that accommodation, in writing, to her/his manager. The request shouldindicate the nature of the accommodation, the particular circumstances andrequirements, and any suggestions or alternatives concerning how the observancecan be accommodated.2. Where time off is required, Associates should make requests for accommodationfar enough in advance of the date(s) when they require the time off, so as to allowtheir manager sufficient time to assess the request and make an appropriatedetermination. If the religious observance is a regular, recurring holiday, theAssociate should make the request as soon as the specific dates are known, eg.make a request for time off for holidays in a year at the beginning of every year.3. Managers must respond to requests within a reasonable time period, based onparticular circumstances.4. Managers will make every reasonable effort to provide accommodation asrequested by the Associate, unless to do so would create an undue hardship.Managers should contact the People Department and their Supervisor concerningrequests for accommodation of religious observances.5. When time off is granted, the following options should be considered in order tomeet GoodLife’s obligation to provide reasonable accommodation:• allow the Associate to make up the time;• adjust shift schedules;• allow the Associate to use vacation days;• provide a leave without pay.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 13

You’re Employment Relationship with GoodLifeLength of Service Recognition Program[back to top]GoodLife values and appreciates its associates, and encourages associates to enjoy asuccessful, long-term, enriching career. GoodLife rewards associates for their tenure, withthe “Length of Service Recognition program”.During your Anniversary month, your manager will pick a special occasion (perhaps ateam meeting or gathering) to present you with your gift in a manner that truly appreciatesyour contributions from your time with GoodLife.Length of ServiceReward Received1 Year GoodLife Pad Folio2 Years GoodLife Stainless Steel Mug5 Years GoodLife Three-Season Jacket10 Years Birks Watch15 Years Custom Gift from Birks20 Years Custom Gift and a Party in your honour!Renewal of FREE Associate MembershipEach Year – Anniversary Month Renewal of FREE Spousal/Family MembershipTwo Discounted Membership CertificatesInstructions on Redeeming Your Complimentary and Discounted MembershipYour Complimentary MembershipUpon commencing employment with GoodLife, all full and part-time associates includingGroup Exercise Instructors will receive a complimentary 3 month term Fitness Plusmembership including towel service. Please read through the following policy carefully:1. The associate membership form (located on Public Folders in the “PeopleDepartment” folder) must be filled out along with a regular membership contract.The contract should have 0’s written in for the dollar amount and no paymentshould be collected.2. After the associate’s 3 months, the associate’s manager must fill out a MembershipExtension letter (also located on Public Folders in the “People Department” folder)This extension approval is submitted to the associate who is processing themembership extension and must be stapled to a change form that is used toextend the membership to a 9 month term.3. Associates who work at a Platinum location will receive a Platinum associatemembership. Any associate who does not work at a Platinum location will need topay the upgrade fee at a Platinum location if they wish to use it.4. The associate term membership includes towel service. This membership is validas long as the associate remains employed with GoodLife.5. Associates will be given a pink associate membership card. The membershipagreement must be kept in the associates’ personnel folder.6. This offer is subject to change at GoodLife’s discretion at any time.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 14

Complimentary Family Membership after 3 Months of ServiceAfter 3 months with GoodLife, Associates can extend a complimentary 9 month termFitness Plus membership for someone in their Immediate Family. Please read through thefollowing policy carefully:1. Fitness Plus members have access to all clubs except those that are identified asPlatinum clubs found on the ‘Pricing by Regions’ form on Public Folders. Platinumclubs have additional amenities and services and Fitness Plus members can workout at a Platinum club by upgrading their membership at the Platinum location (aPre-Authorized Payment will be applicable) or paying the required guest fee pervisit.Associates that work in a Platinum club will get a Platinum Family membership ifthey will be working out in the club that the associate works at. The familymembership is a one year term and after the one year the associate can renew thefree membership for their family member or chose to extend this membership toanother family member. The free family membership must be kept with theassociate’s membership in their blue folder.2. This membership does not include towel service. To receive towel service, thefamily member must pay the pre-authorized payment amount indicated at theirhome club, for an upgrade to towel service.3. When an Associate leaves the company and they have given a free membership toa family member, it will be cancelled immediately. If the family member wishes tocontinue their membership with GoodLife, they must purchase a regularmembership.4. Associates who are currently between 3 and 12 months of service will receive acomplimentary term membership for a spouse or immediate family member; thelength of the term membership must reflect the number of months between theircurrent length of service and their 1 year anniversary with GoodLife. For example ifan associate currently has 6 months of service they will receive a 6 month termmembership.5. This offer is subject to change at GoodLife’s discretion at any time.Complimentary Family Membership after 3 months of Service – Group ExInstructorsAfter 3 months of service, Group Ex Instructors will receive a complimentary 9 month termFitness Plus membership (Platinum membership in Platinum clubs) for someone in theirImmediate Family at the discretion of the Group EX Regional Manager as part of theirperformance review. The membership is valid as long as the Group Ex Instructor remainsemployed with GoodLife. The additional stipulations outlined above, also apply.________________________________________________________________________________2 Associate Discounted 1 Year Term MembershipsAfter 1 year of service and each year thereafter based on the start date and for theduration of employment with GoodLife, associates will receive 2 discounted 1 year termmemberships priced at $199.1. All $199 memberships, including those received by Platinum Club associates, areFitness plus only. Any recipients of the $199 membership can work out at aPlatinum club by upgrading their membership at the Platinum location (a Pre-Authorized Payment will be applicable) or paying the required guest fee per visit.2. These memberships will expire 1 year after they are redeemed and can still beredeemed and used for 1 year even if the associate leaves GoodLife.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 15

3. All current associates with more than 1 year of service will receive their 2discounted membership certificates this year in the month that their start date fallsin. For example, if an associate started with GoodLife in the month of June, theywill receive their 2 discounted membership certificates in the month of June aswell.4. Disciplinary action will be taken if the complimentary or discounted 1 year termmemberships are misused in any way.5. This offer is subject to change at GoodLife’s discretion at any time.________________________________________________________________________________*A relative includes the following:1. Spouse, same-sex or domestic partner2. A parent, step-parent, foster parent or legal guardian3. A child, step-child or foster child4. A grandparent, step-grandparent, grandchild or step-grandchild5. Current mother-in-law, father-in-law, brother-in-law, sister-in-law6. The spouse or same-sex partner of a child7. A brother/sister, step brother/sister or half brother/sisterRequests made that do not fall under the guidelines listed above will be considered on anindividual basis by the Associate’s Divisional Manager/Department Head.Hiring Non Canadian Citizens[back to top]SummaryIf you would like to hire a non-Canadian citizen at GoodLife, these following designatedroles are eligible: Vice Presidents and Directors, Divisional Manager, Personal TrainingRegional Manager, Group Ex Regional Manager, Home Office roles that require Collegeor University, General Manager, Fitness Manager, Assistant General Manager andMember Care Manager. Managers will be asked to explain in detail how they attempted tohire and/or train Canadians for the position when submitting the application to thegovernment.If someone doesn’t have a work permit and the position doesn’t fall under one of the‘designated roles’ above, they cannot be hired by GoodLife. If someone obtained a workpermit elsewhere, they can be hired if they have at least 6 months still left on their workpermit although their employment will automatically end on the day their work permitexpires.________________________________________________________________________________Key items:1. A Labour Market Opinion can only be completed for designated roles2. Mandatory phone screen question to determine if someone has a work permit andwhen it expires3. Non-Canadians must have at least 6 months left on their work permit to be hiredwith GoodLife4. When the work permit expires, employment with GoodLife automatically ends5. Work permits must be scanned and sent to the Policy and Procedure Specialist6. Non-Canadians who are hired must sign the ‘Foreign Worker AcknowledgementForm’Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 16

Suitably qualified Canadian citizens and permanent residents must be consideredfirst for all available work in Canada.It is the policy of the Canadian Government to have opportunities in Canada madeavailable to Canadians and legal permanent residents before foreign workers areadmitted. The following guidelines must be followed:1. Managers are expected to make every reasonable effort to recruit and trainCanadian citizens locally and in other parts of Canada2. Where qualified workers are not available, Manager must make significant effortsto train or re-train to enable Canadian workers to qualifyEffort must be made to find CanadiansHiring Managers are responsible to make every reasonable effort to locate or trainCanadian citizens for vacant positions with GoodLife.________________________________________________________________________________Work PermitsIt is illegal to employ a non-Canadian citizen who does not have a valid work permit.________________________________________________________________________________Labour Market Opinions can only be completed for designated roles(If a non-Canadian citizen applies to a position without a work permit)If Canadian citizens are not available or cannot be trained, a Labour Market Opinion mustbe sent to Service Canada in order to hire a foreign worker.Labour Market Opinions can only be completed for the following roles:• Vice Presidents and Directors• Divisional Manager, Personal Training Regional Manager, Group Ex RegionalManager• Home Office roles that require College or University• General Manager• Fitness Manager• Assistant General Manager• Member Care ManagerLabour Market Opinions can only be filled out for the positions listed above if theyconsistently offer 30 hours per week and the individual must be willing to stay in Canadafor a minimum of 1 year.Please Note: Labour Market Opinions cannot be filled out and sent to Service Canada forany roles not listed above. This means that if a non-Canadian citizen is applying for aposition not listed above in the ‘designated roles’ they can’t proceed in the interviewprocess and GoodLife will not fill out a Labour Market Opinion.Before submitting an LMO application to Service Canada, hiring managers must ensurequalified Canadian citizens are not available. This requires the position to be advertised nvarious sites (Monster, GoodLife, HRDC etc) while allowing sufficient time for Canadiancitizens to apply and be considered for the job. The information contained in GoodLife’srecruitment effort must be sufficient to attract Canadian citizens and must be the same assubmitted on the application for a foreign worker.Suitably qualified Canadian citizens and permanent residents must be consideredfirst for all available work in Canada.Managers wanting to hire a non-Canadian citizen in one of the above designated roles willbe asked to describe in detail how they attempted to hire a Canadian as well as theirefforts to train a Canadian when filling out the Labour Market Opinion (LMO).Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 17

The LMO process takes between 2-6 months and the non-Canadian citizen cannot workfor GoodLife while Service Canada is processing the LMO. If the LMO is approved, theforeign worker must still go to Citizenship and Immigration Canada (CIC) to apply for awork permit at which time they can be denied entry to reside and work in Canada eventhough the LMO was approved.Remember; it’s illegal to hire a non-Canadian citizen who doesn’t have a valid workpermit.________________________________________________________________________________Foreign workers must have at least 6 months left on their work permitForeign workers who apply that already have a work permit issued elsewhere, must haveat least 6 months still left on their work permit to proceed in the interview process. Forexample, if a foreign worker only has 5 months left on their work permit they will not beconsidered for employment with GoodLife.Hiring managers must be prepared to replace the foreign worker when their work permitexpires.________________________________________________________________________________When the work permit expires, employment with GoodLife automatically endsUpon exhausting all efforts to hire a Canadian citizen, if a positive Labour Market Opinionis granted for a designated role or if someone is hired who already has a work permit,once the foreign workers work permit expires, their employment with GoodLife willautomatically end. GoodLife will not take responsibility to assist the foreign worker inextending or renewing their work permit to extend their stay and continue working inCanada. It is the hiring manager’s responsibility to ensure a replacement is hired beforethe foreign workers work permit expires.Managers must make it very clear to the foreign worker when they are hired that whentheir work permit expires their employment with GoodLife will automatically end.Scan the work permit and send to Policy and Procedure SpecialistManagers must also photocopy the work permit and place it in the associates file as wellas scan it and send it to cthibodeau@goodlifefitness.com________________________________________________________________________________Worker Acknowledgement Form’ must be signedWhen a foreign worker is hired, Managers must ensure the foreign workers signs the‘Foreign Worker Acknowledgement Form’ found at the end of the Policy and ProcedureHandbook, to ensure they clearly understand that their employment will end when theirwork permit expires. A copy of this form must be emailed tocthibodeau@goodlifefitness.com along with the scanned work permit.________________________________________________________________________________Mandatory Phone Screen QuestionHiring Managers are responsible for asking the following question in the phone screen or1 st interview:"Do you require a work permit to work in Canada?" If they say ‘Yes’ please ask"When does your work permit expire?"* If a candidate mentions that their work permit that they obtained elsewhere has expired,they cannot proceed in the interview process.** If a candidate currently has a work permit but they don’t have at least 6 months left onit before it expires, they cannot proceed in the interview process.***If a candidate mentions that they are a non-Canadian citizen currently staying inCanada but they have never had a work permit, if they are applying for a designated rolelisted above, the hiring manager can start at the beginning of the process and fill out aConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 18

Labour Market Opinion in order to obtain a work permit. This process takes between 2-6months to complete and they cannot work for GoodLife during this “waiting period”.If they can’t continue in the interview process due to above criteria, please use thefollowing script at the end of the phone screen or 1st interview:“This information will be passed on and if you are selected to proceed in the interviewprocess you will be contacted; thank you for your time and your interest in GoodLife.”If the candidate calls back asking why they weren’t contacted or didn’t get the job,they should not be told that it was due to their citizenship or work permit status.The following script can be used:“After carefully reviewing the skills and qualifications of all applicants, we selected anothercandidate who was best suited to the requirements of this role. Thank you for following upand we wish you much success in finding employment.”________________________________________________________________________________Procedure for Hiring a Non-Canadian CitizenHiring Managers are responsible for completing the LMOHiring Managers wanting to hire a non-Canadian citizen who’s positions falls in thedesignated roles above are responsible for completing the LMO and sending it toService Canada along with supporting documentation.Foreign workers must have a valid work permit to work in Canada. It is illegal forGoodLife to employ a non-Canadian citizen who does not have a valid work permit.When hiring a foreign worker, hiring managers must:1. Submit a Labour Market Opinion (LMO) to the Service Canada Centre responsiblefor your area.________________________________________________________________________________Service Canada may approve a Labour Market Opinion once satisfied:• That the foreign worker wont be taking a job away from Canadian citizens• The foreign worker is filling a labour shortage;• That GoodLife conducted efforts to hire and train Canadians for the job; theemployer's advertisement and recruitment efforts;• That Canadian citizens can’t be trained for the position• There will be benefits if a foreign worker is recruited• The foreign worker will transfer new skills and knowledge to Canadians• The wage and working conditions offered would attract and retain Canadiancitizens;• The job is defined so as to make it accessible to Canadian citizens; and• The wage offered is based on a salary, not a commissionIn order to determine whether to approve an LMO, Service Canada assesses the effectthat hiring the foreign worker will have on Canadian’s access to jobs.2. If Service Canada approves the LMO , they will issue an employment confirmationand you will receive a response in writing which you should forward to the foreignworker along with a copy of a signed job offer and employment contract (ifapplicable).3. Inform the foreign worker to apply for a work permit from Citizenship andImmigration Canada (CIC). Next, CIC decides whether the foreign worker will geta work permit according to the requirements to work and reside temporarily inCanada. The foreign worker can apply for a work permit either at a visa officeabroad a port of entry, or from within Canada if legally permitted to do so.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 19

CIC (Citizenship and Immigration Canada) may also require additional criteria whenissuing work permits to foreign workers in regulated occupations.Please note that a positive LMO does not guarantee that a work permit will be issued tothe foreign worker or that they can begin working for GoodLife. Visa and Border Servicesofficers can refuse work permit applications and entry to Canada if they determine that theforeign worker does not meet the qualifications required by the LMO or is otherwiseinadmissible to Canada.Please remind the foreign worker that if a work permit is granted, when it expirestheir employment relationship with GoodLife will automatically end and thatGoodLife will not take responsibility for completing the process with CIC ofextending or renewing their work permit to extend their stay and continue workingin Canada.________________________________________________________________________________Application Process for a Labour Market Opinion (LMO)The complete application includes the following:1. Application form (email cthibodeau@goodlifefitness.com for the Application form)2. Copy of the recruitment effort and invoice: These copies must clearly indicate thename of the publication and the dates of insertion3. It may be necessary to develop a human resource plan to ensure suitableCanadian citizens and permanent residents can fill future job vacanciesService Canada will consider a request for a foreign worker once satisfied:1. that the foreign worker wont be taking a job away from Canadian citizens2. that Canadian citizens can’t be trained for the position3. There will be benefits if a foreign worker is recruitedService Canada may accept an LMO if:1. The wage and working conditions offered would attract and retain Canadiancitizens and permanent residents;2. The job is defined so as to make it accessible to Canadian citizens and permanentresidents; and3. The wage offered is based on a salary, not a commission________________________________________________________________________________Social Insurance Number (SIN)Every person working in Canada must have a Social Insurance Number (SIN) card.SIN cards that begin with a “9” are issued to temporary workers who are not Canadiancitizens. These SIN cards are valid only until the expiry date printed on the front of thecard. The expiry date corresponds to the date on the work permit issued by Citizenshipand Immigration Canada authorizing a person to work in Canada.Filling out the ‘Payroll Information Form’It is very important that you ask to see the actual SIN card of a newly hired associateinstead of simply asking them for their number.In order for new associates to be paid, the Payroll Dept requires their Social InsuranceNumber accurately recorded in CARE. When you are hiring a non-Canadian citizen youmust also record the expiry date of the SIN card on the ‘Payroll Information Form’ andkeep it in the associates file.As a hiring manager you are responsible for the following:1. Ask to see the SIN card of new associates on their first day of work; when you letthem know when their first shift is, remind them to bring in their Social InsuranceCard2. You must verify and record on the ‘Payroll Information Form’ the associates name,Social Insurance Number and expiry date exactly as they appear on the SIN cardConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 20

and enter this into CARE (for non-club associates, send the ‘Payroll InformationForm’ to payroll;3. If a new associate does not have a SIN card and is eligible to work in Canada, askthem to apply for a SIN card at one of the Service Canada Centres. If the newassociate’s application and identity documents are in order, he or she will receive aSIN card at the time of the visit, and will be able to give you written confirmationPerformance Reviews[back to top]Performance Reviews occur twice per year in May and November for the followingnon-management roles: Membership Consultant, Customer Service Representative,Club Administrator, Child Minding, Cleaner, Personal Trainer, Member Ambassador andFitness Trainer.Goal Setting reviews will occur once per year in September for the followingmanagement roles: General Manager, Fitness Manager, Assistant General Manager andMember Care Manager.360 Feedback Performance ReviewsAll managers will participate in the 360 Feedback process in December of each year;Development Plans will occur at this time as well.3 Month ReviewsAll newly hired associates must receive a 3 month review once they’ve completed 3 fullmonths of service. Wage increases are not tied into the 3 month reviews. A generic 3Month Review template can be found on Public Folders or SharePoint.______________________________________________________________________________What is a Performance Review?The Performance Review is an opportunity for you and your manager to discuss job tasks,identify and correct weaknesses, encourage and recognize strengths and discussmethods for improving performance._______________________________________________________________________________The Purpose of Performance ReviewsThe Performance Review program has been established to enable each associate toreceive regular feedback on job performance, assisting them to become more effective intheir position and to inform Supervisors of career aspirations._______________________________________________________________________________Performance Review Templates Are Available on Public Folders and SharePointAll performance review templates can be found on Public Folders and SharePoint.Public FoldersLocate the People Dept folder and click on ‘Performance Evaluations’.SharePointFrom the main page click on People Dept on the Right side and from there click on the‘Performance Reviews’ link on the Left side.1. To access SharePoint internally at a club on the network or at Home Office go tohttp://glfc7/default.aspx2. To access SharePoint externally, not in a club or at home office, or from a club not onthe network go to https://sharepoint.goodlifefitness.com/default.aspx A box will appearasking for your username and password; Type in the same username and password youuse to access your email; If the box keeps appearing asking for your username andpassword, try typing HEADOFFICE\ in front of your username.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 21

Wage IncreasesNon-Management AssociatesMembership Consultants, Customer Service Representatives, Club Administrators, ChildMinding, Cleaners, Member Ambassadors and Fitness Trainers are eligible to receive awage increase up to the maximum of their wage band twice per year in May andNovember upon completion of a Performance Review.Personal Trainers can receive a wage increase once per year in either May or Novemberbased on their final score. Please see the ‘Personal Trainer Wage Increase Criteria’document on Public Folders and SharePoint for further details.Management AssociatesUpon completion of the Goal Setting review in September, Assistant General Managersand Member Care Managers are eligible to receive a wage increase up to the maximum oftheir wage band based on their final review score. Information on wage increaseguidelines for Fitness Managers should be obtained from the Personal Training RegionalManagers.Wage Increase ChartPlease refer to the ‘Salary and Hourly Wage Increase Guidelines’ found on Public Foldersunder the People Dept folder>Performance Evaluations. For Personal Trainers see‘Personal Trainer Wage Increase Criteria’ document in the same location. Information onwage increases for Fitness Managers should be obtained from the Personal TrainingRegional Managers._______________________________________________________________________________Performance Reviews must be completed to be eligible to receive a wage increaseManagers are responsible for completing associate performance reviews and for formallyreviewing them with each associate.Internal Hiring[back to top]GoodLife is committed to recruiting and selecting individuals who are the most qualified toperform the requirements of each position available. Internal candidates are required tocomplete the interview process as an external candidate would when applying for aninternal position._______________________________________________________________________________Associates with GoodLife are responsible for notifying their manager of their interest in aninternal position prior to applying.In order to apply for an internal position, associates must meet the following criteria:1. Must be employed with GoodLife for a minimum of 3 months before asking for atransfer and applying for an internal posting2. Must consistently be achieving goals3. Must have a reference letter from their manager4. Any other requirements will be outlined in the employment contract_______________________________________________________________________________Period of NoticeNon-management roles: Upon acceptance of an internal offer of employment, associatesare required to give their current manager a minimum of four (4) weeks notice in order tofind and train a replacement prior to beginning their new role with GoodLife.Management Roles: Upon acceptance of an internal offer of employment, managers mustgive their current Supervisor sufficient time needed to hire and train a new leader prior tobeginning their new role with GoodLife.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 22

Reference checksReference checks must be completed and documented for all internal candidates beingconsidered for a position. The associate’s current manager and the manager’s superiormust be contacted prior to an offer of employment.Reference checks are conducted to verify the associate’s work performance and success.Academic achievements and certifications should also be verified when they are essentialto meeting minimum job requirements._______________________________________________________________________________Fit-Fix WorkoutIn our industry working out regularly is essential. It is also a job requirement for allassociates of GoodLife to work out a minimum of twice a week. With that in mind, all newassociates hired must fit into this culture. It is imperative that each candidate be takenthrough a Fit-Fix workout as a phase in the selection process._______________________________________________________________________________How will a Fit-Fix Workout help in selecting a candidate?• It will, to a certain extent, measure each candidate’s level of perseverance.• It allows Hiring Managers to evaluate the candidate’s ability to take direction• It provides a great opportunity for Hiring Managers to observe the candidate’s overallattitude• It will allow the candidate insight into GoodLife’s culture and exposes them to theenvironment that each member will experience with usTime spent on this will ensure success in selecting and keeping the best candidate foryour club/department.Keep in mind that throughout this phase of the selection process you are not testing thecandidate’s ability to workout. You are testing whether they persevere through a new andpossibly uncomfortable experience and their willingness to never give up during theworkout.The Fit Fix section is located on the inside right of the Selection Planner on the bottom halfof the page. When scoring think of the workout in three phases and score according to theguide on the planner.Attached are the Fit Fix Training Principles and the order of machines for your review.You should be prepared to answer questions from candidates as you proceed through theworkout. A good candidate will be positive, enthusiastic and have questions.In closing, all candidates being considered for a position must go through this workout,even potential Personal Trainers. Remember we are measuring competencies, notknowledge of working out._______________________________________________________________________________How are candidates selected?Performance, skill and ability to perform the job, are the primary considerations for theselection of internal candidates.Any candidate who deliberately misrepresents or falsifies information during therecruitment or selection process will be eliminated from the selection process and, ifemployed, will be discharged for cause.Referral Bonus[back to top]Rewards:• $1,000 for full-time club level positions at participating clubs in British Columbia,Alberta, or Manitoba- $500 after 3 months of employment, and $500 after 6 monthsof employment (full-time is defined as working a minimum of 32 hours/week).Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 23

• $500 for part-time club level positions in participating provinces mentioned above -$250 after 3 months of employment, and $250 after 6 month of employment.Great news: anyone who’s eligible can receive the $1,000 bonus no matter wherethey live as long as the referred employee is referred to a club in one of the provincesmentioned above.• $500 for full-time club level positions at participating clubs in all other provincesexcluding above, or for home office positions - $250 after 3 months of employment,and $250 after 6 months of employment (full-time is defined as working a minimumof 32 hours/week).• $200 for part-time club level positions - $100 after 3 months of employment, and$100 after 6 months of employment._________________________________________________________________________Eligibility:All hourly and salaried associates and GoodLife members are eligible to participate in theAssociate Referral Program. Associates holding the position of Hiring Manager, DivisionalManager or above and associates working in the Personnel Marketing Department are noteligible to participate in the Associate Referral Program due to the influence of theirposition. Members whose accounts are not in good standing are ineligible to participate.Individuals who have previously worked for GoodLife are not eligible as referrals._________________________________________________________________________Criteria & Rules:The referring associate or member must fill out an Associate Referral Form (available atthe front desk of every club) and return the form to a club General Manager or ClubAdministrator. Once a hire is made based on the referral, the first half of the rewardpayment will be paid out after 3 months, and the remainder after 6 months of employment.Members – The account of the referring member must be in good standing and GoodLifemust employ the referral when the bonus is distributed. The referring member will receivethe referral reward amount in the form of a cheque which will be mailed to the member’shome address.Associates - GoodLife must employ both the referring associate and his/her referral whenthe reward is distributed. The referring associate will receive the referral reward amountwith his/her pay; therefore it will be subject to applicable deductions.________________________________________________________________________________Attention Hiring ManagersWhen the new associate is hired please fill out the “New Associate Referral Reward Form”found at the end of the Associate Policy Handbook and fax it to 519.661.0342. Uponverification, the referral reward information will be sent to Payroll. E-mailed forms will notbe accepted.On-boarding and Orientation[back to top]Welcome to GoodLife!! Your first 2 weeks of employment are a very crucial time. Yourfuture success is based on these important days; therefore you will receive appropriate onboarding and orientation to GoodLife.Purpose of On-boarding1. Get associates set up with the tools they need2. Learn about corporate policies and culture3. Transfer organizational knowledge quickly4. Accelerate the ramp to productivity5. Increase acculturation to effectively integrate new hires with the existing workforce,expand the support structure, and access each others skill setsConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 24

6. Quickly help new hires to become fully engaged and productive members of theteam_______________________________________________________________________________Information to be covered in the first 2 days1. A "big picture" overview of GoodLife’s culture, mission, organizational structure,products, services, customers and competitors2. A job profile outlining job duties and information on how the new associatesposition fits into the organizational structure3. Facts about compensation and benefits from health insurance to vacation policies4. Information on ethics, confidentiality policies, and other conditions of employment5. Conduct and behaviour expectations6. Explanation of technical and administrative resources such as computers, faxmachines, copiers, voice mail, e-mail and other tools necessary for beingproductive7. A tour of the working environment; facilities, amenities, building security, ID cardsand anything else that will be needed immediately8. Introductions to coworkers9. Information about training, mentoring and other company programs that provideopportunities for career growth and development_______________________________________________________________________________Ask Questions!!Opportunity to ask questions does not end with orientation training. GoodLife encouragesand fosters an environment of continuous learning. If at anytime you have a question orneed more information, it’s important that you ask any member of the GoodLife leadershipteam or fellow associates._______________________________________________________________________________Speak UpAssociates wishing to send in suggestions can do so by clicking on the SPEAK OUT! linkon the CARE homepage. From there, associates can share feedback, suggestions, andcomments about their GoodLife experience either anonymously or with their nameattached. This is a vehicle for associates to contribute to the success of the organizationand to ensure they are being heard._______________________________________________________________________________Training ToolsAs part of your training and development you will be given many different tools including:• New Associate Training Workbook (NATW)• Yellow Policy and Procedure Binder• Access to attend Base Camp Training• 1/2 hour training meetings once a week for the first 3 months• Activities from the Great Start Talent GuideProbationary Period[back to top]As a new associate with GoodLife, you will serve a Probationary Period during your first 3months of employment. Significant absences during the Probationary Period willautomatically extend the period by the length of the absence._______________________________________________________________________________What is Probation?GoodLife will closely monitor a new associate’s work performance, attendance, attitudeand behaviour during his/her Probationary Period. If, at any time during the ProbationaryPeriod, GoodLife feels that an associate is not meeting the required standards ofappropriate workplace performance, attendance, attitude and/or behaviour, then theassociate’s employment may be immediately terminatedDuring the Probationary Period, the associate or GoodLife may end the employmentrelationship any time. Unless the Probationary Period is extended due to an absence, itwill end after 3 months.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 25

_______________________________________________________________________________Did I pass the Probation?Associates will be advised when they have successfully completed the ProbationaryPeriod. Successful completion of the Probationary Period does not guaranteeemployment with GoodLife for any specified period of time. The right to terminate theemployment relationship at any time is retained by both the associate and GoodLife.Discipline[back to top]GoodLife strives to be patient, fair and tolerant of its associates, and to encourageassociates to exercise self-discipline at all times in their conduct and performance.However, repeated, wilful or inexcusable breaches of policies, standard practices ornormal business ethics are not acceptable and will be dealt with accordingly.Discipline can include some or all of these 6 corrective steps1. counselling or coaching2. verbal warning3. written warning4. final written warning5. termination of employmentExcept for termination of employment, any step of the disciplinary procedure may berepeated more than once, if necessary.When does Discipline start?Discipline can start at any time when an incident or developing pattern of behaviourcreates a serious concern. Counselling or formal discipline will be administered as soon aspossible after the facts giving rise to the discipline become known to the manager.Termination[back to top]Terminations arise from Resignation, Retirement, Involuntary Termination and/or IndefiniteLayoff. Associates who resign from their employment voluntarily will be requested toparticipate in an Exit Interview._______________________________________________________________________________Notifying helpdeskWhen associates leave GoodLife, General Managers must notify helpdesk to delete theassociates ‘goodlifemakesiteasy.com’ email address.The helpdesk must also be notified when General Managers, Assistant GeneralManagers, Member Care Managers, and Fitness Managers leave GoodLife, in order tochange the password on the email address to allow others to check the email._______________________________________________________________________________WarningsAn associate who is released for disciplinary reasons (except for just cause) or inability toperform will receive (1) verbal warning, (1) written warning, and (1) final writtenwarning prior to Involuntary Termination proceedings being implemented._______________________________________________________________________________Termination for CauseWhere an associate has engaged in any of the following, dismissal with cause can takeplace immediately without notice or pay in lieu of, even though disciplinary steps have notbeen taken:1. Serious misconduct: Theft, dishonesty and assault are held to be seriousmisconduct. Conduct such as absenteeism, lateness and poor performance isusually not serious misconduct unless there has been some form of progressivediscipline.2. Habitual neglect of duty or incompetence: For this to be cause, the associatehas to clearly understand the requirements of the job, the requirements have to beConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 26

easonable and despite the problems being brought to the associate’s attention,assistance offered. A reasonable time period must be given for improvement.3. Conduct incompatible with the associate’s duties or prejudicial to theGoodLife’s business: Engaging in activities during the workday that interfere withemployment obligations or that compete with GoodLife’s business is consideredcause.4. Wilful disobedience to GoodLife’s orders: When a clear instruction has beengiven by a manager and the instruction has been challenged or disobeyed by anassociate, in certain situations this can be cause.Termination without CauseTermination without cause means that the associate is being terminated for reasons thatare not related to misconduct and notice of the termination or pay in lieu of is requiredbased on the Employment Standards in your jurisdiction.ResignationIn order to receive a letter of service, associates should provide written notice ofresignation to their immediate manager at least 2 weeks in advance of the effective date ofresignation. Associates resigning from more senior positions are expected to give advancewritten notice in keeping with their job responsibilities. For associates transferringinternally, please refer to the Internal Hiring Policy.Please Note: Associates who have been previously dismissed from GoodLife are noteligible for rehire, unless the circumstances involve business decisions out of their control,such as restructure, or position elimination.Compensation[back to top]When you are hired on with GoodLife your pay check will be delayed for 2 weeks and yourcommissions will be paid out on your last pay check the following month.GoodLife uses the principle of “pay for performance” as our compensation model. In orderto reinforce this pay for performance philosophy, the job performance of an associate hasa key role in determining their salary going forward._______________________________________________________________________________"Pay for Performance" means a merit pay system where pay increases are directlyrelated to the achievement of job performance standards and/or specific job objectives.Benefits Plan[back to top]Here is everything you need to know about GoodLife Health Benefits!_______________________________________________________________________________Getting StartedAssociates who meet the hourly requirements must contact the office of Mary R Di Salvodirectly at 519-649-2513/toll free 1-866-649-2513 or MaryRDiSalvo@aol.com and speakwith Wendy to begin the enrollment process. It is extremely important that Wendy becontacted 1 month before the end of your waiting period.Associates who call after the waiting period are responsible for paying late enrollmentfees, completing medical screening and may not be eligible for group benefits.General Managers, Assistant General Managers and Member Care ManagersHave free access to the Employee Assistance Program immediately upon hire and alsohave the option of sharing the cost of Plan A health benefits right away with 32+ hours perweek.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 27

Membership ConsultantsReceive free access to the Employee Assistance Program immediately upon hire and after6 months of service have the option of sharing the cost of Plan C benefits and after 1 ½years of service Plan B with 32+ hours per week.Customer Service Representatives and Club AdministratorsReceive free access to the Employee Assistance Program immediately upon hire and after12 months of service have the option of sharing the cost of Plan C benefits and after 2years of service Plan B with 32+ hours per week.Fitness ManagersReceive free access to the Employee Assistance Program immediately upon hire andhave the option of sharing the cost of Plan A after 12 months of service with 32+ hours perweek. With 24 hours per week Fitness Managers have the option of sharing the cost ofPlan F after 6 months of service and Plan E after 1 and ½ years of service.Personal TrainersReceive free access to the Employee Assistance Program immediately upon hire and after6 months of service have the option of sharing the cost of Plan F benefits and after 1 ½years of service Plan E with 24+ hours per week.Group Benefit PremiumsPlease contact policies@goodlifefitness.com to inquire about the premiums._______________________________________________________________________________Alberta AssociatesIf you are an associate in Alberta please contact policies@goodlifefitness.com to learnabout what plans are available to you._______________________________________________________________________________Plan DetailsPlan C - All employees in their first 2 years of employment with 32 hours per weekon average - waiting period: 12 monthsLife Insurance $10,000.00Accidental Death & Dismemberment $10,000.00Dependent Life $5,000/$2,500reimbursement for drugs 100%Drug Card$5.00 fee per prescriptionSemi-Private Hospital Room100% reimbursementTravel Insurance (Out of Province / Out of 100% reimbursementCountry/Financial/Medical/LegalEmergencies)Vision Carereimbursed at 80% to a maximum of$100.00 every 2 calendar yearsParamedical Services such as Chiropractor, reimbursed at 80% to a maximum ofPhysiotherapy, Massage Therapy,$350.00 per calendar year perPsychology, Naturopathy, Osteopathy, specialtyPodiatry, and Speech TherapyDental Servicesreimbursed at 50% to a maximum of$1,000.00 per yearLong Term Disability pays66.7% of gross annual incomeincluding bonuses and commissionsup to maximum of $5,000 per month.Includes a 121 day waiting period andis payable to age 65Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 28

Employee Assistance ProgramFree access to online resources orcounselors by phonePlan B - All Employees with 2 or more years of service with 32 hours per week onaverage waiting period: 12 monthsLife Insurance $25,000.00Accidental Death & Dismemberment $25,000.00Dependent Life $5,000/$2,500Reimbursement for drugs 100%Drug Card$0 fee per prescriptionSemi-Private Hospital RoomTravel Insurance (Out of Province / Out ofCountry/Financial/Medical/LegalEmergencies)Vision CareParamedical Services such as Chiropractor,Physiotherapy, Massage Therapy,Psychology, Naturopathy, Osteopathy,Podiatry, and Speech TherapyDental Services100% reimbursement100% reimbursementreimbursed at 80% to a maximum of$150.00 every 2 calendar yearsreimbursed at 80% to a maximum of$500.00 per calendar year perspecialtyreimbursed at 80% to a maximum of$1,500.00 per yearLong Term Disability paysEmployee Assistance Program66.7% of gross annual incomeincluding bonuses and commissionsup to maximum of $5,000 per month.Includes a 121 day waiting period andis payable to age 65Free access to online resources orcounselors by phonePlan EAll Personal Trainers and Fitness Managers with 18 months of service with 24 hoursper week on averageLife Insurance $25,000.00Accidental Death & Dismemberment $25,000.00Dependent Life $5,000/$2,500Reimbursement for drugs 100%Drug Card$0 fee per prescriptionSemi-Private Hospital RoomTravel Insurance (Out of Province / Out ofCountry/Financial/Medical/LegalEmergencies)Vision CareParamedical Services such as Chiropractor,Physiotherapy, Massage Therapy,Psychology, Naturopathy, Osteopathy,Podiatry, and Speech TherapyDental ServicesLong Term Disability pays100% reimbursement100% reimbursementreimbursed at 80% to a maximum of$150.00 every 2 calendar yearsreimbursed at 80% to a maximum of$500.00 per calendar year perspecialtyreimbursed at 80% to a maximum of$1,500.00 per year66.7% of gross annual incomeincluding bonuses and commissionsup to maximum of $5,000 per month.Includes a 121 day waiting period andis payable to age 65Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 29

Employee Assistance ProgramFree access to online resources orcounselors by phonePlan FAll Personal Trainers and Fitness Managers with 6 months of service with 24 hoursper week on averageLife Insurance $10,000.00Accidental Death & Dismemberment $10,000.00Dependent Life $5,000/$2,500reimbursement for drugs 100%Drug Card$5.00 fee per prescriptionSemi-Private Hospital RoomTravel Insurance (Out of Province / Out ofCountry/ Financial/Medical/ LegalEmergencies)Vision CareParamedical Services such as Chiropractor,Physiotherapy, Massage Therapy,Psychology, Naturopathy, Osteopathy,Podiatry, and Speech TherapyDental ServicesLong Term Disability paysEmployee Assistance Program100% reimbursement100% reimbursementreimbursed at 80% to a maximum of$100.00 every 2 calendar yearsreimbursed at 80% to a maximum of$350.00 per year per specialtyreimbursed at 50% to a maximum of$1,000.00 per year66.7% of gross annual incomeincluding bonuses and commissionsup to maximum of $5,000 per month.Includes a 121 day waiting period andis payable to age 65Free access to online resources orcounselors by phonePlan AExecutives, Managers, Corporate Sales, and Franchise Owners with 32 hours perweek on average (Please note: Fitness Managers with 12 months of service and 32hours per week on average.) waiting period: effective upon hireLife Insurance $100,000.00Accidental Death & Dismemberment $100,000.00Dependent Life $5,000/$2,500Reimbursement for drugs 100%Drug Card$0 fee per prescriptionSemi-Private Hospital Room100% reimbursementTravel Insurance (Out of Province / Out of 100% reimbursementCountry/Financial/Medical/Legal Emergencies)Vision CareParamedical Services such as Chiropractor,Physiotherapy, Massage Therapy, Psychology,Naturopathy, Osteopathy, Podiatry, and SpeechTherapyDental ServicesLong Term Disability paysreimbursed at 80% to amaximum of $150.00 every 2calendar yearsreimbursed at 80% to amaximum of $500.00 percalendar year per specialtyreimbursed at 100% to amaximum of $1,500.00 per year66.7% of gross annual incomeincluding bonuses andcommissions up to maximum of$7,500 per month. Includes a121 day waiting period and ispayable to age 65Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 30

Employee Assistance ProgramFree access to online resourcesor counselors by phoneEmployee Assistance Program[back to top]All GoodLife associates have access to the Employee Assistance Program at no cost.Please Note: The Employee Assistance Program is not available to our members; if amember approaches an associates with a personal problem such as alcohol or drugaddiction, anorexia, depression, abuse etc please refer to the ‘Free Resources in Canada’form and offer these numbers to the member.All GoodLife associates regardless of weekly hours, how long they’ve been workingfor GoodLife or whether they are full time, part time, or on contract can use EAP.EAP is also 100% paid for by GoodLife which means there is absolutely no cost tothe associate!There is no enrollment process or waiting period; simply go online or call.Anyone living in the associate’s household also has access to EAP (children,spouse, common law, same sex partners)What is EAP?EAP is the “Employee Assistance Program” offered by GoodLife through Ceridian.What Can the EAP help Associates with?Parenting & Child Care, Education, Midlife & Retirement, Older Adults, Disability,Financial, Legal, Everyday Issues, Work, Managing People, Health, Emotional Well-Beingand Addiction & Recovery_______________________________________________________________________________Who at GoodLife has Access to EAP?EAP is available to all associates at no cost regardless of hours, length of service andwhether associates are full time, part time, or on contract.Family Members: Immediate family members living in the associate’s household alsohave access to EAP (children, spouse, common law, same sex partners)._______________________________________________________________________________Why should Associates use EAP?Associates should use EAP because it’s completely confidential. Their manager will notfind out they used EAP and they will not put their job in jeopardy._______________________________________________________________________________How do Associates access EAP?Associates can access books, articles and resources online or can speak with a counselorby calling or emailing:Online: www.lifeworks.com User ID: goodlife Password: wellnessBy Phone: 877-207-8833- If you would like to speak with someone about a particularissue, you can contact a LifeWorks counselor for more information. Counselors areavailable 24/7 to answer your questions and share their knowledge. Your call is free andcompletely confidential.By Emailing: You can e-mail your question to a counselor, schedule a phoneconsultation, or request customized research for child care or elder care providers byConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 31

going to “Contact Us” on the LifeWorks website.________________________________________________________________________QuestionsIf you have any questions about GoodLife’s EAP program please contact ChenelleThibodeau in the People Dept at cthibodeau@goodlifefitness.com or 289-314-5573.Reference Request[back to top]Associate files maintained by GoodLife are private and confidential and protected by lawtherefore GoodLife will only confirm dates of employment.All requests for references are to be directed to Alison Campbell in the People Departmentat (519)661-0190 ext 234 in order to verify dates of employment.If the request for information is related to a credit or loan application, the associate mustauthorize release of this information in writing. Alternatively, the manager may provide aletter of confirmation on letterhead that can be used by the associate.________________________________________________________________________Letter of ServiceAssociates can ask their manager for a ‘letter of service’ before their last day withGoodLife.Working at the age of 65 and beyond[back to top]GoodLife is very happy you made the decision to continue working. Below you will findimportant information regarding Old Age Security and Canada Pension.The Ontario Human Rights Code was amended on December 12, 2006 to prohibitmandatory retirement, protecting employees aged 65 or more from being forced to retire,except in those cases where the retirement age can be justified as a bona fideoccupational requirement.Ending mandatory retirement does not mean that associates can be penalized if theychoose to retire at or prior to the age of 65. Rather, older persons can choose forthemselves how long they wish to remain in the workforce, based on their own lifestylesand circumstances, so long as they are capable of performing their jobs._______________________________________________________________________________Notice of RetirementAssociates wishing to retire are asked to give notice to their immediate manager 6 monthsprior._____________________________________________________________________________Old Age Security Pension (OAS)The OAS pension is a taxable monthly benefit available to most people 65 or older whomeet the residence requirements. Eligible applicants can receive the OAS pension even ifthey are still working or if they have never worked, but they must apply for it. Pensionerswhose net income, including the OAS pension, is above a certain amount ($63,000) arerequired to reimburse part of their pension amount.Old Age Security is only retroactive for 11 months. Therefore, if someone applies at age67 they loose 2 years of benefits._____________________________________________________________________________To qualifyTo qualify for an OAS pension in Canada, applicants must be 65 years of age or older andmust be Canadian citizens or legal residents of Canada at the time the pension isapproved. They must have resided in Canada for at least 10 years after the age of 18.Periods of residence and/or contributions in a country with which Canada has a socialsecurity agreement may be used to help meet the residence requirement for eligibility.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 32

A person who has resided in Canada for at least 40 years after reaching the age of 18may qualify for a full OAS pension._____________________________________________________________________________Canada Pension Plan (CPP)The Canada Pension Plan (CPP) provides contributors and their families with retirement,disability, survivor, death and children’s benefits. The retirement pension is a monthlypayment available to CPP contributors as early as 60 years of age.The disability benefit is a monthly benefit available to qualified CPP contributors and theirdependent children. Survivor benefits are paid to a deceased contributor’s estate,surviving spouse or common-law partner and dependent children. Benefits include:• The death benefit – a one-time payment to, or on behalf of, the estate of adeceased Canada Pension Plan contributor;• The survivor's pension – a monthly pension paid to the surviving spouse orcommon-law partner of a deceased contributor; and• The children's benefit – a monthly benefit for dependent children of a deceasedcontributor.Canada Pension Plan benefits are not paid automatically. They must all be applied for;Prompt application is recommended because retroactive payments can be made forno more than 12 months.Working past 65Associates who continue to work and contribute to the CPP after turning 65 and havehigher earnings than previously, those earnings can be substituted for similar periods ofearnings before the age of 65. For example: if a person works for two years after turning65 and contributes at the maximum level, those two years can be used to replace any twoyears of low or zero earnings that took place before his or her 65th birthday.Please note that once the retirement pension begins, it is not possible to contribute to theCPP (associates receiving a CPP retirement pension can return to work, but can no longercontribute to the CPP).Amount of benefitAssociates who start their pension at the age of 65 receive a monthly benefit equal toabout 25 percent of their average monthly pensionable earnings during their contributoryperiod. The amount of a retirement pension beginning before the 65th birthday is reducedby 0.5 percent for each month between the starting of the pension and the month of his orher 65th birthday.Similarly, the amount of a retirement pension that starts between the ages of 65 and 70 isadjusted upwards by 0.5 percent for each month between the month after the 65thbirthday and the month for which the first payment is made. No adjustment is made afterthe 70th birthday. Thus, the maximum adjustment that may be made, up or down, to theretirement pension is 30 percent.Associates who apply for a retirement pension after the age of 65 may choose toreceive the adjusted pension rate or take a retroactive payment of up to 12 months(or dating back to when they reached 65 years of age if that is less than 12 months)._____________________________________________________________________________Applying after the age of 65After age 65, for every year associates wait to apply, they receive 6% more benefits foreach year.Information about CPP and OASInformation about these programs can be obtained directly from the federal government bycalling Human Resources and Social Development Canada. By telephone: English: 1-800-277-9914; French: 1-800-277-9915.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 33

GoodLife Health BenefitsAssociates over the age of 65 should make note of the following changes to their healthbenefits:• Life - benefit reduces by 50% at age 65 and terminates at age 70 or retirement,whichever is earlier• Dependent Life - employee's age 70 or retirement, whichever is earlier• Accidental Death & Dismemberment - same as Life• Extended Health - employee's age 70 or retirement, whichever is earlier• Dental - employee's age 70 or retirement, whichever is earlier• Long Term Disability - age 65 less the waiting period of 121 days, or retirement,whichever is earlierRelocation Reimbursement[back to top]Upon approval, GoodLife can provide associates with financial relocation assistance oninitial recruitment of employment and transfers or promotions initiated by GoodLife.The hiring manager must fill out the Relocation Reimbursement request form and send topolicies@goodlifefitness.com for review. The People Dept will contact the hiring managerwith the final decision and if approved the Relocation Reimbursement policy will be sent tothe hiring manager and associate. The Acknowledgement section of the original requestform must be signed by the associate.Statutory Holidays[back to top]Statutory Holiday Ontario Alberta BC ManitobaNewNovaNfldBrunswickScotiaQuebecNew Years Day ** ** ** ** ** ** ** **January 1stFamily Day** **3rd Monday inFebruaryLouis Riel Day**3rd Monday inFebruaryGood Friday** ** ** ** ** ** ** **Friday before EasterSundayVictoria Day** ** ** ** **Monday precedingMay 25Canada Day** ** ** ** ** ** ** **July 1stLabour Day** ** ** ** ** ** ** **1st Monday inSeptemberThanksgiving Day ** ** ** ** **2nd Mon in OctRemembrance Day** ** ** **November 11Christmas Day ** ** ** ** ** ** ** **December 25thBoxing Day**December 26thBritish Columbia**Day1st Monday in AugustNew Brunswick Day**1st Monday in AugustSt John The BaptistDay June 24th**Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 34

**Personal Trainers are not permitted to work on Statutory Holidays._______________________________________________________________________________Public Holiday PayPublic holiday pay is designed so that associates receive wages for having a day offbecause of a statutory holiday. Associates who qualify can take stat holidays off work andbe paid public holiday pay._______________________________________________________________________________Who Qualifies for Public Holiday PayAssociates qualify for public holiday pay unless they don’t work:• Their entire regularly-scheduled shift before or after the public holiday; or• Their entire shift on the public holiday if they agreed or were required to work thatdayQualifying full-time and part-time associates receive holiday pay whether they work or noton the stat holiday.In Ontario, Manitoba and Quebec it does not matter how recently an associate was hiredor how many days they worked before the stat holiday. In Alberta, associates must haveworked for at least 30 days or shifts in the year before the holiday. In B.C. associatesmust be employed for at least 30 days and worked on at least 15 of the 30 days before thestat holiday. In New Brunswick associates must have worked for at least 90 days in the 12months before the holiday. In Nova Scotia associates must be entitled to receive pay forat least 15 of the 30 days before the holiday. In Newfoundland associates must beemployed for at least 30 days prior to the holiday._______________________________________________________________________________Pay for hourly associates that work on a Stat HolidayHourly associates will be paid:Public holiday pay for the day plus 1½ times the regular hourly rate for each hour workedPay for salary associates that work on a Stat HolidaySalary associates will be paid:Their regular rate for the hours worked and a day off with public holiday pay no more thanthree months after the public holiday.If a salary associate works 4 hours on a stat holiday instead of a full 8 hour shift, they willreceive 4 hours off with pay on another day within 3 months of the stat holiday_______________________________________________________________________________Pay for Stat Holidays not workedSalary and hourly associates that don’t work the stat holiday will receive public holiday payfor that day.Personal Trainers Not Permitted to Work on Statutory Holidays[back to top]Personal Trainers with GoodLife receive all Statutory Holidays off with pay!Personal Trainers can take advantage of having all Statutory Holidays off to spend the daywith friends and family (see chart below for all Statutory Holidays by province). In addition,even though Personal Trainers don’t work on Statutory Holidays, they receive publicholiday pay for the day; in other words, Personal Trainers get paid for having the day off.Even though some Personal Trainers may want to work on Statutory Holidays, they arenot permitted to do so._______________________________________________________________________________Scheduling SessionsPersonal Trainers must not schedule or service any sessions on a Statutory Holiday.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 35

Personal Training Regional Managers, Fitness Managers and General Managers mustcheck their clubs PT schedule to ensure that no sessions are scheduled on a StatutoryHoliday. If there are sessions scheduled they must unschedule them and inform theirPersonal Trainers._______________________________________________________________________________Training clients on a Stat but entering the hours into any other dayPersonal Trainers are absolutely not permitted under any circumstance to train clients ona Statutory Holiday and enter the hours into another day that isn’t a Stat Holiday. Thismeans that training clients on a Stat Holiday but entering the hours into another day tocover up the Stat day worked, to get paid, is not acceptable.Personal Trainers that do so will be disciplined immediately up to and including terminationof employment for cause._______________________________________________________________________________Statutory Holidays by ProvinceStatutory Holiday Ontario Alberta BC ManitobaNewNovaNfldBrunswickScotiaQuebecNew Years Day** ** ** ** ** ** ** **January 1stFamily Day** **3rd Monday in FebruaryLouis Riel Day**3rd Monday in FebruaryGood Friday** ** ** ** ** ** ** **Friday before EasterSundayVictoria Day** ** ** ** **Monday preceding May25Canada Day** ** ** ** ** ** ** **July 1stLabour Day** ** ** ** ** ** ** **1st Monday in SeptemberThanksgiving Day** ** ** ** **2nd Monday in OctoberRemembrance Day** ** ** **November 11Christmas Day** ** ** ** ** ** ** **December 25thBoxing Day**December 26thBritish Columbia Day**1st Monday in AugustNew Brunswick Day**1st Monday in AugustSt John The Baptist DayJune 24th**Public Holiday PayPublic holiday pay is designed so that associates receive wages for having a day offbecause of a statutory holiday. Associates who qualify can take Statutory Holidays offwork and be paid public holiday pay.Who Qualifies for Public Holiday PayAssociates qualify for public holiday pay unless they don’t work:• Their entire regularly-scheduled shift before or after the public holiday; or• Their entire shift on the public holiday if they agreed or were required to work thatdayIn Ontario, Manitoba and Quebec it does not matter how recently an associate was hiredor how many days they worked before the stat holiday. In Alberta, associates must haveConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 36

worked for at least 30 days or shifts in the year before the holiday. In B.C. associatesmust be employed for at least 30 days and worked on at least 15 of the 30 days before thestat holiday. In New Brunswick associates must have worked for at least 90 days in the 12months before the holiday. In Nova Scotia associates must be entitled to receive pay forat least 15 of the 30 days before the holiday. In Newfoundland associates must beemployed for at least 30 days prior to the holiday.Qualifying full-time and part-time associates receive holiday pay whether they work or noton the stat holiday.When you’re at WorkHours of Work and Breaks[back to top]Full-time working hours are a minimum of 32 and a maximum of 44 hours per week._________________________________________________________________________OvertimeOvertime must be approved by the Divisional Manager/Department Head. Managers andsupervisors don't qualify for overtime pay if the work they do is managerial or supervisoryand they perform any non-supervisory or non-managerial tasks on an irregular orexceptional basis._________________________________________________________________________What is Overtime Pay?Overtime pay is at least 1½ times the associate’s regular rate of pay (time and a half).For example, if the associate’s regular pay is $8 an hour the overtime rate is $12 an hour($8 x 1½) for every hour worked after 44 in each week.Overtime will not be paid for work performed off company premises, unless specificapproval has been obtained in advance from the Divisional Manager/Department Head.Commuting between home and work is not considered working, travel or waiting time._________________________________________________________________________BreaksFor every 5 hours you are scheduled to work you can take either:• Option A - one 30 minute paid break or• Option B - two 15 minute paid breaks and one 30 minute unpaid break** you must work a minimum of 5 hours to take a break.An associate scheduled to work a 10 hour shift receives two 30 minute paid breaks._________________________________________________________________________Breaks for Split ShiftsIf an associate is scheduled to work a split shift being 11am-1pm and 3pm-9pm, theywould not be eligible for any breaks during the first half of their shift; even though theyleave the club for a couple of hours from 1-3pm, they are still eligible to take a break(Option A or B) during the second half of their shift because from 3-9pm they are working6 hours. In this example because the second half of their shift is only 6 hours it wouldmake most sense to take one 30 minute paid break. In CARE the hours entered for thatday would be a total of 8._________________________________________________________________________Entering the hours into CAREExample 1 – associate chooses Option AIf an associate works an 8 hour shift and they took one 30 minute paid break they wouldenter 8 hours into CARE for that day.Example 2 – associate chooses Option BConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 37

If an associate works an 8 hour shift and they take one 15 minute paid break in themorning, one 15 minute paid break in the afternoon and one 30 minute unpaid break forlunch they must enter 7.5 hours into CARE for that day._________________________________________________________________________Associates that work the overnight shift in 24 hour clubsIf you are scheduled to work an overnight shift by yourself for a minimum of 5 hours in a24 hour club you can take your 30 minute paid break during non-peak hours between 2amand 4am and if a member walks in serve them and then continue your break. Your breakmay end up happening over a 1-2 hour period due to interruptions but in the end you willhave had a total of 30 minutes paid to eat and rest.Timing of BreaksThe time of the breaks will be established by your manager based on operational needs.GoodLife strongly encourages that you take your breaks regularly to replenish andrejuvenate._________________________________________________________________________Please note:• Breaks are not recorded for additional remuneration;• Breaks are not accumulated for extra time off;• Breaks cannot be used for the purpose of leaving work early_______________________________________________________________________________As an associate with GoodLife you may be required to work more than maximum numberof hours specified above or to work during a period that is necessary to avoid seriousinterference with the ordinary working of GoodLife’s facilities or operations:1. To deal with an emergency2. If something unforeseen occurs to ensure that continuous processes or seasonaloperations are not interrupted3. To carry out urgent repair work to GoodLife premises or equipmentShift Durations[back to top]Shifts at GoodLife may be 8 hours or as little as 2 hours in duration. As per EmploymentStandards, shifts don’t have to be a minimum of 3 hours in duration._________________________________________________________________________Associates being sent home earlyFor shifts that are scheduled for 3 hours or longer, if the associate has to be sent homeearly, they must work for a minimum of 3 hours before being sent home.For shifts that are scheduled for 2 ½ hours or less, if needed, the associate can be senthome early at any time and will be paid for the hours worked._________________________________________________________________________Staff MeetingsStaff meetings must not be scheduled for longer than 2 ½ hours.When staff meetings scheduled for up to 2 ½ hours end early and associates are senthome for example after 1 ½ hours, associates will be paid their regular wage for 1 ½hours.If a staff meeting must be scheduled for 3 hours or more and it happens to end early,associates must work at least 3 hours before being sent home.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 38

When you’re Not at WorkAbsenteeism[back to top]Your attendance is crucial to the success of GoodLife therefore it is very important toremain punctual and maintain a satisfactory attendance record.Absenteeism will affect your pay and is grounds for disciplinary action, up to and includingimmediate termination of employment for cause.Absence from work for 3 consecutive days, without notification to the manager, andfollowing completion of the job abandonment process, is considered to be a voluntaryresignation of the associate from employment._________________________________________________________________________If you must be absent from workAssociates are also responsible for notifying their supervisor, immediately, of anyabsence, the reason(s) for the absence, and their expected return date. Associates mustalso, to the best of their ability, find a replacement for their shift._________________________________________________________________________Arriving to work on timeAssociates must arrive 15 minutes before their shift begins. If you are late you must reportdirectly to your manager upon arriving to work._________________________________________________________________________Finishing your shift earlyAssociates who need to leave work early for unavoidable reasons must obtain approvalfrom their manager, preferably at least one day prior to the day requested. Early leavingwill be treated the same as lateness for payroll purposes._________________________________________________________________________Doctor’s NotesMedical absences of more than 2 days must be supported by medical certification.Depending on the nature of the medical reason for absence, GoodLife may require amedical certificate confirming the associate's date of return. The original copy of anymedical certificate will be included in the associate's file.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 39

Leaves of Absence with PayVacation[back to top]Congratulations!!! As a GoodLife associate you work hard to earn Vacation Time andVacation Pay! Here’s how it works…….Associates earn both Vacation Time and Vacation PayIn order to understand this policy it’s important to keep in mind that vacation time and payare two separate items; all hourly and salary associates receive vacation pay and mustalso take a minimum of 2 calendar weeks of vacation time each year where they are notscheduled for any shifts and have time away from work.** For club associates the calendar week is from Thursday to Wednesday._______________________________________________________________________________Vacation TimeAssociatesManagersFull completedCalendar Years ofVacation Entitlement Full completedCalendar Years ofVacationEntitlementServiceService1 10 days 1 15 days5 15 days 5 20 daysSenior ManagerFull completed Vacation EntitlementCalendar Years ofService1 15 days5 20 days10 25 daysPositions that fall under Manager:Home Office Manager, General Manager,Assistant General Manager, Member CareManager, Fitness Manager, Group ExRegional and Personal Training RegionalPositions that fall under Senior Manager:Chief Officers, Vice President’s, Directors, Senior Home Office Managers, and Divisional Managers_______________________________________________________________________________Vacation Time for Salary associatesHow is vacation time earned?GoodLife’s alternative vacation entitlement year is from January 1st to December 31st.Vacation time is earned in one year and taken in the next year based on the vacation year.A salary associate in Ontario with vacation entitlement of 2 weeks joins on July 1st 2008,they earn 4.98 days in 2008 to take in 2009 and in 2009 they will earn 10 days to take in2010._______________________________________________________________________________“Stub period”The stub period is the period from the start date to December 31 st . In the example abovethe ‘stub period’ would be from July 1 st to December 31st. Salary associates earn a proratedamount of vacation time during a stub period; the salary associate that started withGoodLife on July 1 st would earn 4.98 days (see below chart) of vacation time in 2008 thatthey can take in 2009.A manager with vacation entitlement of 3 weeks that joins on July 1st 2008 will earn7.5 days in 2008 to take in 2009 and in 2009 they will earn 15 days to take in 2010.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 40

Stub Period Charts2 weeks (10 days) Vacation 3 weeks (15 days) VacationMonths Days accumulated Months Days accumulated1 .83 1 1.252 1.66 2 2.503 2.49 3 3.754 3.32 4 5.005 4.15 5 6.256 4.98 6 7.507 5.81 7 8.758 6.64 8 10.009 7.47 9 11.2510 8.30 10 12.5011 9.13 11 13.7512 9.96 12 15.00Stub Period Chart for New Brunswick and QuebecSalary associates in New Brunswick and Quebec earn 1 day for each completed month ofservice not exceeding 2 weeks during their ‘stub period’. If a salary associate in NewBrunswick or Quebec with vacation entitlement of 2 weeks joins on July 1st 2008, theyearn 6 days in 2008 to take in 2009 and in 2009 they will earn 10 days to take in 2010.2 weeks (10 days) Vacation 3 weeks (15 days) VacationCompleted Months Days accumulated Months Days accumulated1 1 1 1.252 2 2 2.503 3 3 3.754 4 4 5.005 5 5 6.256 6 6 7.507 7 7 8.758 8 8 10.009 9 9 11.2510 10 10 12.5011 10 11 13.7512 10 12 15.00Note: Salaried associates must complete 5 full calendar years of service and will startearning their 3 rd week of vacation in their 6 th year and can take the 3 rd week in their 7thyear of service. In essence, associates will have 3 weeks of paid vacation in their 7 th yearof service._______________________________________________________________________________Vacation Time for full and part time Hourly associatesFull time and part time hourly associates must also take vacation time.As per the Employments Standards Act, associates must take 2 calendar weeks ofvacation per year. This means that even though an hourly associate may only work 2shifts per week, they must have 2 calendar weeks free from working any shifts in agiven year from January to December.** for club associates the calendar week is from Thursday to Wednesday.When associates first begin working for GoodLife, they don’t have to take vacation timefrom their start date to December 31 st that year.ExampleSally is part time hourly Customer Service Representative that works every Monday andTuesday each week and she started with GoodLife on July 1 st 2008. Between July 1 st andDecember 31 st 2008 Sally doesn’t have to take any vacation time.From January 2009 to December 31 st 2009 Sally has to have 2 calendar weeks whereshe isn’t scheduled to work any shifts. If Sally requests Monday April 6 th 2009 off withConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 41

her General Manager to go to Canada’s Wonderland, her manager can give her that dayoff and not schedule her for any other shifts during that calendar week and this willcount as her 1 calendar week of vacation. Between then and December 31 st 2009 she willhave to take one more calendar week off of work with no scheduled shifts.Managers must follow the “Time Off Tracking” procedure and ensure that all hourly full andpart time associates are not scheduled to work for 2 calendar weeks from January toDecember 31 st each year. The 2 weeks do not have to be one after the other._______________________________________________________________________________The Importance of Tracking Vacation TimeIt is especially important that Vacation Time is tracked for both full and part time hourlyand salary associates.All associates vacation time must be logged in the “Time Off Tracking” Excel doc found onPublic Folders under People Dept, Time Off Tracking.If a salary associate doesn’t request vacation, it is the responsibility of the Manager toensure they take the vacation time earned the year before.If an hourly associate doest request vacation time, it is the responsibility of the Manager tochose the 2 calendar weeks for them from January to December 31 st and ensure that theyaren’t scheduled to work any shifts for those 2 calendar weeks chosen._______________________________________________________________________________Vacation PayWho is eligible for Vacation Pay?All full-time and part-time associates are eligible for vacation pay. Vacation pay for 2weeks of vacation is 4% of gross wages, 6% for 3 weeks and 8% for 4 weeks.When is Vacation Pay paid out?Salaried associates are only paid vacation pay when they take vacation time. Salariedassociates who earn commission receive vacation pay on all commission payouts. Salaryassociates must take vacation time each year; vacation time not taken cannot be paid outor carried over to the next year.Hourly associates (full and part time) receive vacation pay on each paycheck.Save your vacation pay in a separate bank accountBecause hourly associates must take vacation time (2 calendar weeks with no scheduledshifts) even though they receive vacation pay on each paycheck, they can provide payrollwith a 2 nd bank account number to have their vacation pay deposited into that 2 nd accountto ensure they have money to withdraw when they take their vacation time. Please fill outthe “Payroll Information Form” found on Public Folders under People Dept and clearlyindicate that the account # you are providing is for vacation pay; please send this form topayroll._______________________________________________________________________________When you can take Vacation TimeAll vacation time must be approved by your Manager. Associates must request vacationdates using the “Team Vacation Request Form” found in the club. A blank “TeamVacation Request Form” can be found on Public Folders under People Dept, Time OffTracking.GoodLife will make reasonable effort to grant the requested time off work, butunfortunately may not always be able to do so.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 42

In particular, Divisional Managers, General Managers and Membership Consultantscannot take vacation time during designated promotional days, including, but not limitedto:• the last 5 days of the month• sales launch days• and club special eventsSimilarly, club associates cannot take vacation time in the months of September andJanuary as these are our busiest months._______________________________________________________________________________All associates must take vacation timeYour vacation is a time to rest and relax and do all of the fun things you enjoy doing onyour own time. Salary associates must take the vacation time that they earned the yearbefore. Vacation time cannot be saved and carried over to the next year or be paidout.Managers are responsible for ensuring that all salary associates take the vacation timethey earned the year before and that hourly associates aren’t scheduled for any shifts for 2calendar weeks between January and December 31 st each year. GoodLife can schedulean associate's vacation time and require them to take that scheduled vacation time, if theassociate does not request and take the vacation on their own._______________________________________________________________________________Vacation and Pregnancy/Parental/Emergency/Family Medical LeaveAll associates continue to accrue vacation time when off work on pregnancy, parental,emergency, family medical and/or other type of statutory leave required under theapplicable provincial employment standards. However, since vacation pay is calculated asa percentage of wages earned, vacation pay will effectively not continue to accrue whenan associate is off work on an unpaid leave of absence.For example, if a 3-year hourly associate takes an unpaid pregnancy/parental leave fromJanuary 1, 2007 to December 31, 2007, then that associate will earn 2 weeks' vacationtime in respect of the 2007 calendar year, which the associate can take in 2008. However,since that associate didn’t earn wages in 2007, then that associate earned (nor received)no vacation pay for the 2007 calendar year. As such, the 2 weeks they take in 2008 willbe unpaid.Time Off Tracking[back to top]Here are Step-by-Step Instructions on what to do when an associate takes time off forvacation, sick days, or bereavement leave etc.GoodLife is counting on the Manager or Club Administrator to track the days eachassociate takes off from work. It’s very important that all time off is tracked!_______________________________________________________________________________The importance of tracking Vacation TimeIt is especially important that Vacation Time is tracked for both full and part timeassociates.All hourly and salary associates must take vacation time and it must be tracked using the“Time Off Tracking” excel doc. Please note the doc has 2 different tabs; one for salaryassociates and the other for hourly associates.If an associate doesn’t request vacation dates then it’s up to the Manager to schedule theassociate “off” for 2 calendar weeks during the year (January to December 31 st ).Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 43

Vacation Time for Full Time Salary AssociatesSalary associates receive vacation pay when they go on vacation as oppose to on eachpay check. Please refer to the employment contract for details on the # of vacation daysto be taken.GoodLife’s alternative vacation entitlement year is from January 1st to December 31st.Vacation time is earned in one year and taken in the next year based on the vacation year.A salary associate in Ontario with vacation entitlement of 2 week’s who joins on July 1st2008, earns 4.98 days in 2008 to take in 2009 and in 2009 earns 10 days to take in 2010.The below stub period charts must be used to calculate the vacation time earned betweenthe start date and December 31st of that same year.Stub Period ChartNew Brunswick and Quebec10 days Vacation 15 days Vacation 10 days Vacation 15 days VacationMonths Days Months Days Months Days Months Daysaccumulatedaccumulatedaccumulatedaccumulated1 .83 1 1.251 1 1 1.252 1.66 2 2.502 2 2 2.503 2.49 3 3.753 3 3 3.754 3.32 4 5.004 4 4 5.005 4.15 5 6.255 5 5 6.256 4.98 6 7.506 6 6 7.507 5.81 7 8.757 7 7 8.758 6.64 8 10.008 8 8 10.009 7.47 9 11.259 9 9 11.2510 8.30 10 12.5010 10 10 12.5011 9.13 11 13.7511 10 11 13.7512 9.96 12 15.0012 10 12 15.00**For further information please see the ‘Vacation Policy’ in the Associate Policy andProcedure Handbook on Public Folders and SharePoint._______________________________________________________________________________Vacation Time for Full and Part Time Hourly AssociatesFull and part time hourly associates must also take vacation time.As per the Employments Standards Act, associates must take 2 calendar weeks ofvacation per year. This means that even though an hourly associate may only regularlywork 2 shifts per week, they must have 2 calendar weeks free from working any shiftsin a given year from January to December 31 st .** for club associates the calendar week is from Thursday to Wednesday.When associates first begin working for GoodLife, they don’t have to take vacation timefrom their start date to December 31 st that year.ExampleSally is a part time hourly Customer Service Representative that works every Monday andTuesday each week and she started with GoodLife on July 1 st 2008. Between July 1 st andDecember 31 st 2008 Sally doesn’t have to take any vacation time.From January 2009 to December 31 st 2009 Sally has to have 2 calendar weeks whereshe isn’t scheduled to work any shifts. If Sally requests Monday April 6 th 2009 off withher Manager to go to Canada’s Wonderland, her manager can give her that day off andnot schedule her for any other shifts during that calendar week and this will count asher 1 calendar week of vacation. Between then and December 31 st 2009 she will have totake one more calendar week off of work with no scheduled shifts.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 44

Managers are responsible for ensuing that all hourly full and part time associates are notscheduled to work for 2 calendar weeks from January to December 31st each year. The2 weeks do not have to be one after the other.Please note: Hourly associates don’t get paid when they take vacation days because theyreceive 4% vacation pay on each pay check.Save your vacation pay in a separate bank accountBecause hourly associates must take vacation time (2 calendar weeks with no scheduledshifts) even though they receive vacation pay on each paycheck, they can provide payrollwith a 2nd bank account number to have their vacation pay deposited into that 2ndaccount to ensure they have money to withdraw when they take their vacation time.Please fill out the “Payroll Information Form” found on Public Folders under People Deptand clearly indicate that the account # you are providing is for vacation pay; please sendthis form to payroll._______________________________________________________________________________Tracking Vacation Time - Managers must follow these steps………STEP 1Fill in the ‘TimeOff TrackingExcel’ docSTEP 2Have all staff fillout the “TeamVacation RequestForm”STEP 3Approve theVacation andtransfer the datesto a calendarSTEP 4Track the vacationtime using the‘Time OffTracking’ docSalary Associates OnlyUsing the ‘Salary Associates’ tab in the “Time Off Tracking Excel doc” fillin columns A, B, C and D for all salary associates.Also fill in the “# of vacation days to be taken” column in the ““TeamVacation Request Form” so that your salary associates know how manydays to request off.In December of each year have all associates fill out the “Team VacationRequest Form” to be sure everyone is scheduled off for vacation. Print boththe ‘Hourly Associates’ tab and the ‘Salary Associates’ tab and pass themaround to all associates.Please note the form has a different tab for salary and hourlyassociates.If throughout the year associates want to change the vacation datesoriginally requested they must request the change a minimum of 1 monthbefore the vacation would occur.Review the “Team Vacation Request Form” and approve the requestedvacation dates for each associate based on your club/department needs(CAP, peek seasons etc) and availability of staff. You can also speak toyour Divisional Manager or Department Head about approving the vacation.If certain associates don’t request enough vacation days or don’t requestany at all, you must choose the vacation dates for them and ensure they arescheduled off on those dates.Purchase a calendar you can hang in the office and record all vacation dateson that calendar to ensure that when you are creating the schedule youremember to schedule the associate “off” for that time. You can also postthe completed and approved “Team Vacation Request Form” next to thecalendar.Salary AssociatesWhen salary associates actually take the vacation, record it in the “Time OffTracking Excel” doc in column E (vacation taken). The “Vacation Balance”column will automatically tell you how many days they have left to takebefore the year is over.Hourly AssociatesFor each part time and full time hourly associate, record what 2 calendarweeks (Thurs to Wed for clubs) they take off during the year in the “Time OffTracking Excel” doc and fill in columns A, B, C and D for each hourlyassociate.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 45

STEP 5For salaryassociates onlySend email toPayrollSAVE it to your desktop for easy access when you need it again in thefuture!When salary associates take vacation you must fill out the “Sample Email”and send to payroll before the associate’s scheduled vacation to ensurethey continue to receive pay while on vacation.Payroll does not need to be informed when hourly associates take vacationor sick days.Tracking sick or bereavement days………Note: Salary associates receive 5 paid sick days per year and 3 paid bereavement days ifa family member passes away.Hourly associates receive 3 paid bereavement days if a family member passes away.Any sick days taken by hourly associates are not paid.STEP 1Revise ScheduleSTEP 2Fill out the“Time OffTracking Doc”.Look at your schedule and call in associates to cover shifts to ensure yourclub is fully staffed!Fill in the “Time Off Tracking Excel Doc” and indicate the # of sick orbereavement days they are taking.Salary AssociatesOnce the “Sick Days” column reaches 5, any other sick days taken beyondthis are unpaid and payroll would need to be notified using the “SampleEmail” that the sick days are unpaid.Salary AssociatesWhen salary associates take sick or bereavement days you must fill out the‘Sample Email’ and send it to payroll.STEP 3Notify PayrollPayroll must be notified when salary associates take sick days so that theyget paid their full salary. If payroll is not notified and the associate’s hoursshow 32 for a given week, payroll will only pay this associate based on 32hours instead of 40. The same applies if the associate takes 3 paidbereavement days.Sick days beyond 5 are unpaid and payroll will adjust the pay accordingly forsalary associates. Bereavement days beyond 3 are unpaid.Hourly AssociatesWhen hourly associates take 3 paid bereavement days you must fill out the‘Sample Email’ and send it to payroll to ensure the associate gets paid forthe 3 days. Payroll does not need to be notified when hourly associates takesick days as they are unpaid.Required Forms: Forms can be found in Public Folders under People Department >TimeOff Tracking• Team Vacation Request Form Dec 2008• Time Off Tracking Updated Dec 2008• Sample email to notify payroll of associate time off_________________________________________________________________________QuestionsPlease contact Chenelle Thibodeau in the People Dept atcthibodeau@goodlifefitness.com if you have any questions regarding time off tracking.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 46

Sick Leave[back to top]Every GoodLife associate receives 5 sick days per year. Salary associates receive theirregular wages for the 5 sick days. Hourly associates will not receive pay for sick daystaken._______________________________________________________________________________Doctors NoteYour supervisor may request proof-of-illness certification from a physician if you areabsent for 2 days in a row. Please give your doctors note to your immediate supervisor.If you are ill GoodLife wants you to stay home and get better. Please contact yourmanager and speak with them ideally 24 hours before your next scheduled shift. It is alsovery important that you try and find a replacement for the shift you will be missing;thousands of members count on you to be present and your team also depends on you._______________________________________________________________________________Sick leave does not accumulate annually (cannot be carried over) and is intended for thesole purpose of illness. Sick leave is not to be used for vacation or unscheduled time off._______________________________________________________________________________Personal Emergency Leave in OntarioAs per the ESA, associates in Ontario receive Personal Emergency Leave; 10 unpaiddays each calendar year for personal illness, injury or medical emergency or for the death,illness, injury, medical emergency or urgent matter relating to an immediate familymember.Salary Associates in OntarioSalary associates in Ontario receive 5 paid ‘sick leave’ days plus 5 unpaid ‘PersonalEmergency Leave’ days.Hourly Associates in OntarioHourly associates in Ontario receive 5 unpaid ‘sick leave’ days plus 5 more unpaid‘Personal Emergency Leave’ days.The 10 ‘Personal Emergency Leave’ days are not in addition to the 5 ‘sick leave’ days.Bereavement Leave[back to top]Days off with PayIn the event of a death in your Immediate Family, full and part time associates may takeBereavement Leave for the purpose of arranging and/or attending the funeral. 3 daysBereavement Leave will be given to you with pay. If attendance at the funeral requiresextensive travel, unpaid leave of up to 2 further days will be given._______________________________________________________________________________Non Immediate FamilyIn the event of a death of Other Relatives, associates may request a Bereavement Leaveof 1 working day with pay to attend the funeral. If attendance at the funeral requiresextensive travel, unpaid leave of up to 2 further days will be given._______________________________________________________________________________Personal Emergency Leave - UnpaidAn associate, who requires time off work in excess of the above amounts for the death ofan individual not listed above, may be entitled to unpaid Personal Emergency Leave aslong as the 10 days have not been used for the calendar year. Associates can also askfor an unpaid Personal Leave of Absence.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 47

Notifying your ManagerAssociates must inform their manager after learning of a death that qualifies for this typeof leave. If the associate must begin the leave before advising the manager, the associatemust inform them as soon as possible.If you are eligible for Bereavement Leave, your manager cannot penalize you in any wayfor taking a leave."Immediate Family" means the associate’s:1. Spouse, same-sex or domestic partner2. A parent, step-parent, foster parent or legal guardian or the spouse/partnersparent, step-parent, foster parent or legal guardian3. Spouse or partner of a parent4. A child, step-child or foster child and spouse/partners child, step-child or fosterchild5. A grandparent, step-grandparent, grandchild or step-grandchild6. A parent, grandparent or sibling of a partner7. The spouse or same-sex partner of a child8. A brother/sister, step brother/sister or half brother/sister9. A relative who is dependent on the associate for care or assistance10. Any relative who resides permanently with the associate or with whom theassociate permanently resides"Other relatives" means aunt, uncle, niece, nephew and cousin of the associate or aperson who resides in the associate's household as a member of the family._______________________________________________________________________________Proof for Bereavement LeaveGoodLife reserves the right to require an associate to provide evidence, such as aphotocopy of the death certificate, obituary, burial certificate or other confirmation, of theneed for Bereavement Leave.Voting Leave[back to top]GoodLife associates will be provided paid time off, where necessary, in order to vote in aMunicipal, Provincial or Federal Election.As a general rule, when the polls are not open at least 3 hours either before or after theregularly scheduled hours of work, an associate may receive leave if necessary to vote.Under this provision, the associate may report to work 3 hours after the polls open or leavework 3 hours before the polls close, whichever requires less time off.Example: Assume the polls where an associate votes are open from 7 a.m. to 8 p.m., andtheir regular work hours are from 9 a.m. to 5:30 p.m. On the day of the election, theassociate would be excused at 5 p.m. to allow for 3 hours to vote. This would require thegranting of only one-half hour of paid leave.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 48

Leaves of Absence without PayJury and Witness Leave[back to top]In the instance where you are legally required to attend jury duty, or subpoenaed as acourt witness, you will be given a leave of absence without pay provided you agree to thefollowing conditions:1. return to work immediately if services as a juror, or as a court witness, are notrequired; and2. provide a copy of the jury summons or summons to witness to your immediatemanagerIf the jury duty lasts longer than 2 days, the associate must provide a return date andcontact their manager on a weekly basis._________________________________________________________________________Requesting to be excused due to Serious Personal HardshipAssociates are advised to mention at registration that their employer does not continuewages when someone serves jury duty. In many cases, individuals whose employerdoesn’t continue wages or those that are self employed will be excused and not selectedfor jury duty.In addition, if you feel that serving jury duty will cause you serious hardship you can makea request to the court in writing to have your jury duty postponed to a later date or to beexcused from the jury duty. The court asks that these requests be made in cases ofserious hardship only.You can speak to the judge when you attend registration and explain to them that if youare selected for jury duty that it will cause you serious personal hardship. Requests mustbe made in writing and accompanied by documentation supporting your “hardship”. Acopy of this policy can be printed and included. The judge will make a decision and youwill be notified._________________________________________________________________________Notifying your ManagerAn associate who must take jury leave is responsible for advising his or her manager inadvance. No associate will be intimidated, suspended, laid off, dismissed or penalized inany way for taking jury leave._________________________________________________________________________Returning to workAssociates on jury duty must report to work on workdays, or parts of workdays, when theyare not required to perform this duty. If an associate is excused from jury or witness dutybefore the completion of his/her regularly scheduled work day, that associate must returnto work (unless there is less than 4 hours remaining in that work day). Otherwise, theassociate will be required to return to work at the start of his/her next regularly scheduledwork day._________________________________________________________________________Continuation of Health BenefitsPlease contact policies@goodlifefitness.com for further information._________________________________________________________________________Seniority and VacationExcept for determining whether an associate has completed a Probationary Period, theperiod of a jury leave is included in calculating an associate's length of employment,service or seniority. An associate will continue to accrue vacation time during jury leave._________________________________________________________________________For more information on Jury and Witness please contact policies@goodlifefitness.comConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 49

Pregnancy Leave[back to top]Pregnancy/Parental Leave Form for ManagersManagers of associates taking a pregnancy/parental leave must fill out the“Pregnancy/Parental Request and Vacation Form” and send it topolicies@goodlifefitness.com________________________________________________________________________Congratulations!!! In this document you will find all of the information you need to knowregarding your Pregnancy leave.Checklist1. Read the ‘Pregnancy and Parental Leave Policy’, and the ‘Pregnancy and ParentalLeave Questions and Answers’ document.2. Give your manager written notice based on your provinces minimum required period ofnotice before your leave begins. If requested, provide a certificate from a legally qualifiedmedical practitioner stating the expected birth date.3. Provide post dates cheques and contact payroll is you wish to continue health benefitswhile on Pregnancy Leave4. Apply for Maternity Benefits through Employment Insurance. http://www100.hrdcdrhc.gc.ca/ae-ei/dem-app/english/home2.htmlbecause associates don’t receive wagesfrom GoodLife for the duration of their leave.The table below describes the details based on your province of residence:JurisdictionPregnancyLeaveDurationParentalLeaveDurationWith/withoutPregnancyLeavePreg +ParTotalAlberta 15 weeks 37/37 52weeksAdoptionLeaveDurationLengthofServicerequired37 weeks 52consecutive weeksMinimumNotice tobe givenSeniorityDuringLeaveBenefitsDuringLeave6 weeks Maintained NotspecifiedBritishColombia17 weeks 35/37 52weeksManitoba 17 weeks 37/37 54weeks37 weeks NA 4 weeks Maintained Yes37 weeks 7consecutivemonths4 weeks NotspecifiedYesNewBrunswick17 weeks 37/37 52weeks37 weeks NA 2 weeks(matleave);4weeks(parentalleave)AccrualNotspecifiedNewfoundland17 weeks 35/35 52weeks52 weeks 20consecutive weeks2 weeks Maintained NoNova Scotia 17 weeks 35/52 52weeks52 weeks 12consecutivemonths4 weeks Maintained Yes(atemployeescost)Ontario 17 weeks 35/37 52weeksQuebec 18 weeks 52/52 70weeks37 weeks 13 weeks 2 weeks Accrual Yes52 weeks NA 3 weeks Maintained YesConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 50

Who can take a Pregnancy Leave?An associate who is expecting a child and has completed the required length ofemployment is entitled to a job protected Pregnancy Leave without pay up to a maximumperiod based on the province. The associate may apply for Maternity benefits fromEmployment Insurance._________________________________________________________________________When can Pregnancy Leave start?Pregnancy leave may commence no earlier than 17 weeks before the expected birth dateand no later than the due date or the day the associate gives birth. Such leave are for acontinuous period. Associates may also choose to take less time off if they sochoose._________________________________________________________________________Stopping work earlier than plannedIf an associate has to stop working earlier than planned because of complications causedby her pregnancy before the baby's due date, she needs to give GoodLife:1. Written notice no later than 2 weeks after she stops working stating the day thepregnancy leave began, or will begin, and2. If GoodLife requests it, a medical certificate supporting her inability to work andstating the baby's due date.An associate doesn't have to start her pregnancy leave when she stops working due toillness. She may go on sick leave or personal emergency leave (10 days) if she choosesupon presenting a doctors note. GoodLife cannot make an associate start pregnancyleave, even if she is sick or if her pregnancy limits the type of work she can do._________________________________________________________________________Benefits during LeavePlease contact policies@goodlifefitness.com for further information._________________________________________________________________________VacationAn associate is still an employee of GoodLife even while one a Pregnancy/Parental Leaveand continues to accrue vacation time. Full time hourly associates will not receivevacation pay while they are on leave because they are not earning wages from GoodLifeduring this time although they continue to accumulate their vacation time to take the nextyear. Salary associates will have some paid vacation days the year after they return andsome will be unpaid because vacation pay is not earned when wages are not receivedfrom GoodLife.For example: if a salaried associate with 3 weeks of vacation takes a Pregnancy/Parentalleave from April 30 th 2008 to April 30 th 2009 the following chart would apply:YearVacation TimeEarnedTime period you can take earnedvacation2007 15 days with pay January 2008-December 200820085 days with pay January 2009-December 2009Worked from Jan to April 30 th200810 days without pay January 2009-December 2009On leave from May 1 st to Dec 31 st20095 days without pay January 2010-December 2010On leave from Jan to April 30 th200910 days with pay January 2010-December 2010Worked from May 1 st to Dec 31 st________________________________________________________________________Bonus PayoutAssociates earning bonuses will receive the money when it’s scheduled to be paid outcompany wide even if they are off on Pregnancy Leave at that time. This payout will notaffect the associates maternity benefit amount from EI because the bonus was earnedprior to the Pregnancy Leave.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 51

Return to WorkOn expiry of a Pregnancy Leave, an associate who returns to work will be reinstated in thesame position held prior to the leave, or if that position is not available, in a comparableposition with not less than the same wages and benefits.An associate who is entitled to Parental Leave in addition to Pregnancy Leave mustcommence that leave upon the expiry of Pregnancy Leave, unless the child has not yetcome into the care and control of the associate._________________________________________________________________________Ending a leave earlier than planned or not returning to GoodLifeAn associate may end a pregnancy leave earlier than planned provided she gives at least4 weeks of written notice of the date on which she intends to return to work. An associatewho does not intend to return to work after the leave ends, is required to provide at least 4weeks of written notice of termination. Failing to return to work upon the expiry of aPregnancy Leave without written notice of termination will be treated as a voluntarilyresignation effective on the expiry of the leave.Please refer to the ‘Pregnancy Leave Questions and Answers’ for further details andinformation.Parental/Adoption Leave[back to top]Pregnancy/Parental Leave Form for ManagersManagers of associates taking a pregnancy/parental leave must fill out the“Pregnancy/Parental Request and Vacation Form” and send it topolicies@goodlifefitness.com_________________________________________________________________________Congratulations!! In this document you will find all of the information you need to knowregarding your Parental or Adoption leave.________________________________________________________________________Checklist1. Read the ‘Pregnancy and Parental Leave Questions and Answers’2. Give your manager written notice based on your provinces minimum required period ofnotice before your leave begins.3. Provide post dates cheques and contact payroll is you wish to continue health benefitswhile on Pregnancy Leave.Apply for Paternity Benefits through Employment Insurance. http://www100.hrdcdrhc.gc.ca/ae-ei/dem-app/english/home2.htmlbecause associate’s don’t receive wagesfrom GoodLife for the duration of their leave.Who can take Parental Leave?An associate who has completed the required length of employment and who is theparent of a child is entitled to job protected Parental/Adoption Leave without pay up tothe maximum period based on the province. The associate may apply for paternitybenefits from Employment Insurance.In addition to birth parents and adoptive parents, an individual is considered to be a parentof a child for the purpose of this policy, if he/she is in a long-lasting relationship (e.g.marriage; common law relationship; same-sex partnership) with a birth parent or adoptiveparent of a child and intends to treat that child as his/her own child."Child" means a new-born child of the parent and, in the case of an adopted child, a childwho has not reached the age of compulsory school attendance."Parent" means the father or mother of a new-born child and includes a person with whomConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 52

a child is placed for adoption and a person who is in a relationship of some permanencewith a parent of a child and who intends to treat the child as his or her own.When can Parental Leave begin?An associate who takes Pregnancy Leave and wishes to take Parental Leave mustcommence the Parental Leave immediately upon expiry of the Pregnancy Leave, without areturn to work, unless agreed to otherwise by Good Life and the associate. OtherwiseParental/Adoption leave must commence not later than 52 weeks after the day the child isborn or comes into the custody, care and control of a parent for the first time._________________________________________________________________________Health BenefitsPlease contact policies@goodlifefitness.com for further information._________________________________________________________________________VacationAn associate is still an employee of GoodLife even while one a Pregnancy/Parental Leaveand continues to accrue vacation time. Full time hourly associates will not receivevacation pay while they are on leave because they are not earning wages from GoodLifeduring this time although they continue to accumulate their vacation time to take the nextyear.Salary associates will have some paid vacation days the year after they return and somewill be unpaid because vacation pay is not earned when wages are not received fromGoodLife._________________________________________________________________________Bonus PayoutAssociates who earned bonuses prior to starting a Pregnancy Leave will receive themoney when it’s scheduled to be paid out company wide even if they are on Leave at thattime. This payout will not affect the associates maternity benefit amount from EI becausethe bonus was earned prior to the Pregnancy Leave._________________________________________________________________________Return to WorkOn expiry of a Parental/Adoption Leave, an associate who returns to work will be given thesame position held prior to the leave or if that position is not available a comparableposition. The associate will receive a pay rate that is equal to the greater of the rate theassociate most recently earned; and the rate the associate would be earning had he orshe worked throughout the leave._________________________________________________________________________Ending the leave earlier than plannedAn associate may end a Parental/Adoption Leave earlier than planned by providing atleast 4 weeks of written notice of the date on which the leave is to end._______________________________________________________________________Not returning to GoodLife after Parental LeaveAn associate who takes Parental/Adoption Leave will not terminate his or her employmentbefore the leave expires or when it expires without giving at least 4 weeks' written notice oftermination. Unless written notice of termination is given, an associate who fails to returnto work upon the expiry of a Parental/Adoption Leave will be treated as a voluntarilyresignation.Pregnancy and Parental Leave Question and Answers[back to top]How much time off can parents take for pregnancy and parental leave? A birthmother can take both pregnancy and parental leave. Birth mothers are entitled to 17weeks of unpaid, job-protected pregnancy leave. Those who take pregnancy leave areentitled to up to 35 weeks' parental leave. Birth mothers, who don't take pregnancy leave,and all other new parents, are entitled to up to 37 weeks' parental leave. If each parent ofa newborn took the maximum leave allowed at separate times, the baby would have aparent at home for 89 consecutive weeks (17 weeks of pregnancy leave for the birthConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 53

mother, plus 35 weeks of parental leave for the birth mother, plus 37 weeks of parentalleave for the other parent). Parents may also choose to go on leave at the same time: forexample, a father could take parental leave at the same time a mother is on pregnancy orparental leave.Can an employer fire an employee for taking leave? No. An employer cannot fire orotherwise penalize an employee in any way because he or she is or will become eligible totake, plans to take or takes a pregnancy or parental leave.What happens to an employee's pay, seniority and benefits? Employers do not haveto pay wages when an employee is on pregnancy or parental leave. Employees earnseniority and credit for length of service and length of employment while on pregnancy orparental leave. While an employee is on pregnancy or parental leave, the employer mustcontinue to pay its share of the premiums to certain benefit plans (i.e., pension plans, lifeand extended health insurance plans, accidental death plans and dental plans) that wereoffered before the leave.Can an employer require an employee to return early from leave? No, an employercannot require an employee to return from leave early.What happens when an employee returns to work? In most cases, an employee mustbe given his or her old job back at the end of his or her pregnancy or parental leave, or acomparable job if that job no longer exists. In either case, the employee must be paid atleast as much as he or she was earning before the leave. Also, if the wages for the jobwent up while the employee was on leave, or would have gone up if he or she hadn't beenon leave, the employer must pay the higher wage. The only time the employer doesn'thave to reinstate the employee is if he or she is dismissed for legitimate reasons that aretotally unrelated to the leave.What if an employee decides not to return to work after pregnancy or parentalleave? If an employee on pregnancy or parental leave decides to resign before he or shereturns to work, he or she must give at least four weeks' written notice to his or heremployer. This notice requirement doesn't apply if the employer constructively dismissesthe employee. See the "Termination of Employment" fact sheet for information onconstructive dismissal.Who can take pregnancy leave? A pregnant employee is entitled to pregnancy leavewhether she is a full-time, part-time, permanent or contract employee, provided that she:Works for an employer that is covered by the ESA , and Was hired at least 13 weeksbefore the baby's expected birth date (the "due date").Can an employee who just started a new job take pregnancy leave? To be eligible forpregnancy leave, an employee has to be hired at least 13 weeks before the date the babyis due, or expected to be born--not the date the baby is actually born. An employeedoesn't have to actively work for 13 weeks to be eligible for pregnancy leave. Theemployee could be on layoff, vacation, sick leave or have started pregnancy leave in the13-week period before the due date, and still be entitled to her pregnancy leave.What if the baby is born before the employee is 13 weeks in the new job? Eligibilityfor pregnancy leave does not change because the baby was born early (i.e., before thedue date) because it depends on the date the baby is expected to be born-not on the dayit actually is born.Does an employee who has a stillbirth or miscarriage still qualify for pregnancyleave? If an employee has a miscarriage or stillbirth, she is eligible for pregnancy leave solong as the miscarriage or stillbirth occurred no more than 17 weeks before the due date.How long does a pregnancy leave last? Most pregnant employees have the right to takeup to 17 weeks of unpaid time off work. Employees may also choose to take less time off.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 54

In certain cases, the leave may be longer. For example: If the employee has taken 17weeks of leave and the baby has not been born yet, the employee can stay on pregnancyleave until the baby is born, even if it means the pregnancy leave lasts longer than 17weeks. When the baby is born, the employee may start her parental leave. If theemployee is not eligible for parental leave (for example, there was a miscarriage or astillbirth, or the baby died during the pregnancy leave), the employee's pregnancy leaveends on the later date of: 17 weeks after the pregnancy leave began, or 6 weeks after thebirth, stillbirth or miscarriage, even if this means the pregnancy leave will be longer than17 weeks.Does pregnancy leave have to be taken all at one time? Yes. Once an employee hasstarted her pregnancy leave, she must take it all at once and cannot split it up.When can a pregnancy leave begin? The earliest a pregnancy leave can begin isusually 17 weeks before the baby's due date. However, if an employee has a live birthmore than 17 weeks before the due date, she must begin her pregnancy leave on the dateof the birth. The latest a pregnancy leave can begin is usually the baby's due date.However, if the baby is born earlier than the due date, the leave must begin no later thanthe day the baby is born. Within these restrictions, an employee can start her pregnancyleave any time she chooses. The employer cannot decide when the employee will beginher leave.What if the employee is sick-can the employer make her start her pregnancy leave?The employer cannot make an employee start pregnancy leave, even if she is sick or if herpregnancy limits the type of work she can do.How do employees tell their employer about their plans? Employees must providetheir employer with two weeks' written notice before beginning a pregnancy leave. Thenotice letter must include: The starting date for the pregnancy leave, and If the employerrequests it, a certificate from a medical practitioner stating the baby's due date.What if an employee fails to give notice? An employee who doesn't give the propernotice does not lose her right to a pregnancy leave.What if the employee's plans change after she has given written notice? Changingthe date a leave starts: If the date the leave starts is to be changed by the employee, theemployer must be given a new written notice at least two weeks before the day the changewill happen.Changing the date a leave ends: If the employee wants to change the date her pregnancyleave will end, the employer must be given written notice at least four weeks before thechange will happen.What if an employee is ill and has to stop working earlier than planned? If anemployee has to stop working earlier than planned because of complications caused byher pregnancy before the baby's due date, she needs to give the employer: Written noticeno later than two weeks after she stops working stating the day the pregnancy leavebegan, or will begin, and If the employer requests it, a medical certificate supporting herinability to work and stating the baby's due dateAn employee doesn't have to start her pregnancy leave when she stops working due toillness. She may go on sick leave if she chooses.What if an employee has her baby early and has to stop working sooner thanplanned? If an employee has to stop working early because of a birth, stillbirth ormiscarriage before the due date, she needs to give the employer: Written notice no laterthan two weeks after she stops working, stating the day the pregnancy leave began, and Ifthe employer requests it, a certificate from a medical practitioner stating the due date andthe actual date of birth, stillbirth or miscarriage.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 55

What if the baby is born later than expected? An employee who used all 17 weeks ofpregnancy leave before the baby was born would be able to remain on pregnancy leaveuntil the birth, and then, in most cases, begin her parental leave.Can an employer require an employee to provide proof she is fit to return to work?No, an employer cannot require an employee to provide written medical documentationthat she is fit to return to work.What about giving notice about ending a leave? If the employee doesn't specify areturn date, the employer may assume she will take the full 17 weeks (or any longer periodthat she may be entitled to).What about when an employee plans to take parental leave after pregnancy leave?An employee who took pregnancy leave who is planning to take parental leave must giveher employer written notice. This may be given at the same time as notice is given for thepregnancy leave, if the employee wishes, or if it isn’t; it must be given at least two weeksbefore the pregnancy leave ends.________________________________________________________________________________(EI) Employment Insurance – Maternity BenefitsMaternity benefits are employment insurance payments from the federal EmploymentInsurance program (EI). Under this program, eligible workers can receive maternity benefitpayments during their pregnancy leave. Maternity benefits are payable to the birth motheror surrogate mother for a maximum of 15 weeks. To receive maternity benefits you arerequired to have worked for 600 hours in the last 52 weeks or since your last claim. Youneed to prove your pregnancy by signing a statement declaring the expected due or actualdate of birth.The mother can start collecting maternity benefits either up to 8 weeks before she isexpected to give birth or at the week she gives birth. Maternity benefits can be collectedwithin 17 weeks of the actual or expected week of birth, whichever is later. Please notethat the date you file your claim is very important in order for you to receive the maximummaternity benefits you are entitled to.If you are unsure about your most advantageous maternity period to receive maximumbenefits, please contact the Service Canada Centre in person or at 1 800 206-7218 from8:30 am to 4:30 pm and press "0" to speak to a representative. If the actual date of birth isdifferent from the expected date of birth, it is very important that you provide this date assoon as possible after the birth of your child to determine the most advantageousmaternity period, in order to receive the maximum maternity benefits you are entitled to.If your baby is hospitalized, then the 17 week limit can be extended for every week yourchild is in the hospital up to 52 weeks following the week of the child's birth. You will stillreceive benefits for a maximum of 15 weeks, but payments can be delayed until your childcomes home. However, if you received maternity benefits prior to the birth and wanted toreceive the remaining benefits when your child comes home, call the telephoneinformation service at 1- 800-206-7218 from 8:30 am to 4:30 pm and press "0" to speak toa representative to have the necessary adjustment made to your claim.Who is eligible? To be entitled to maternity, parental or sickness benefits you must showthat: your regular weekly earnings have been decreased by more than 40%; and you haveaccumulated 600 insured hours in the last 52 weeks or since your last claim. This period iscalled the qualifying period. If you have been paid EI benefits in the past and you receiveda written notice, for example, a warning letter or a penalty letter, for making a falsestatement, the required number of hours worked to claim maternity, parental and sicknessbenefits will be higher.Qualifying period: The qualifying period is the shorter of: the 52 week-period immediatelybefore the start date of a claim, or the period since the start of a previous EI claim if thatConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 56

claim had started during the 52 week-period. In certain situations, the qualifying periodmay be extended up to 104 weeks.How, where and when to apply: Submit an EI application on-line http://www100.hrdcdrhc.gc.ca/ae-ei/dem-app/english/home2.htmlor in person to your Service CanadaCentre. You should apply as soon as you stop working, even if you receive or will receivemoney when you become unemployed. Request your Record of Employment (ROE)from your last employer. If you have your ROE from your last employer, applyimmediately. If you did not receive your last ROE, submit your application along with proofof employment — for example, pay stubs. If one or more ROE covering periods prior toyour last employment are missing, you must still submit your claim for benefits.If getting your ROE is a problem, your Service Canada Centre can help you. You will haveto fill out a form "Request for Record of Employment" explaining what efforts you havemade to obtain it. You will have to provide proof of your employment, such as: pay stubs,cancelled pay cheques, T4 slip, work schedules. If possible, we will use the proof tocalculate your claim. Delaying in filing your claim for benefits beyond 4 weeks from thetime your earnings have decreased by more than 40% may cause loss of benefits. At thesame time you are applying for maternity benefits, you and your partner can also apply forparental benefits.What information/documents are needed to apply?• Social Insurance Number (SIN). If your SIN begins with a 9, you need to supplyproof of your immigration status and work permit• Record of Employment (ROE) from each job held over the last 52 weeks. If you donot have your ROE after 14 days from your last day of work, you must submit proofof employment such as pay stubs• Personal identification such as your driver's license, birth certificate or passport ifyou are applying in person• Complete bank information, as shown on your cheque or bank statement or avoided personalized blank cheque from your current account. This will ensure thatyour payment of benefits will be made directly to your bank account with DirectDeposit.• Medical certificate indicating how long your incapacity is expected to last, if you areclaiming sickness benefits.• The expected or actual date of birth of your child, if you are claiming maternitybenefits• Newborn's date of birth, or, when there is an adoption, your child's date ofplacement, if you are claiming parental benefits. In the case of an adoption, youalso need to provide the name and full address of the agency handling theadoption.• Detailed version of facts if you have quit or have been dismissed from any job inthe last 52 weeks• Details regarding your most recent employment: Your total salary beforedeductions including tips and commissions, your salary before deductions for yourlast week of work — from Sunday to your last day worked, gross amounts receivedor to be received, such as: vacation pay, severance pay, pension, pay in lieu ofnotice or lay off and other moniesWhen will you receive your first payment? If you have submitted all requiredinformation and if you qualify for benefits, your payment will be issued within 28 days fromthe date of filing your claim. If you do not qualify, you will not be notified of the decisionmade on your claim.A 2-week waiting period to serve: You must serve a 2-week unpaid waiting periodbefore your EI benefits begin to be paid. Generally, this period is the first 2 weeks of yourclaim. This is like a deductible for any kind of insurance. On the other hand, if you reopena claim for benefits in which you have already served a 2-week waiting period, you do notserve another 2-week waiting period.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 57

Earnings, for example, vacation pay, severance pay... made or allocated during the 2-week waiting period will be deducted in the first 3 weeks for which benefit is otherwisepayable following the waiting period. In some instances, the 2-week waiting period maybe waived or deferred, but only under certain circumstances, for example:If you get paid sick leave pay from your employer following your last day worked, thewaiting period may be waived, If parental benefits are being shared by the both parents,only one waiting period needs to be served. For example, if a 2-week waiting period hasalready been served for maternity benefits by the first parent, the second parent claimingparental benefits can have the waiting period deferred. In the event the second parentsubsequently claims regular or sickness benefits after parental benefits, the 2-weekwaiting period would then need to be served. If you receive group insurance payments,you can serve the 2-week waiting period during the last two weeks that these insurancepayments are being paidHow long can you receive maternity and parental benefits?A combination of maternity and parental benefits can be received up to a combinedmaximum of 50 weeks.You could receive up to a maximum of 65 weeks of combined sickness, maternity andparental benefits instead of the normal combined maximum of 50 weeks. In order to beeligible for the increased number of weeks, the following conditions must be met duringyour benefit period: you have not been paid regular or fishing benefits, you have been paidsickness, maternity and parental benefits; and you have been paid less than the maximumof 15 weeks of sickness benefits or less than 35 weeks of parental benefits.You do not have to fill out reports during maternity and/or parental benefits. If you areapplying for maternity and/or parental benefits, you do not have to complete reports inorder to receive your payments. To do this, you must sign a declaration of exemption atthe time of applying.In order to get paid: A payment cannot be issued to you without a completed claimant'sreport. If you are applying for maternity and/or parental benefits and have chosen not tocomplete reports, your payments will be made directly to your bank account with DirectDepositWorking while on maternity, parental and sickness benefits: If you work while onmaternity or sickness benefits, your earnings will be deducted dollar for dollar from yourbenefits. On the other hand, if you work while on parental benefits you can earn $50 perweek or 25% of your weekly benefits, whichever is higher. Any monies earned above thatamount will be deducted dollar for dollar from your benefits. However, effective December11, 2005, if you are living in one of the 23 participating economic regions, the amount youcan earn while working part-time and receiving EI benefits is the greater of $75 or 40 % ofweekly benefits. You must, of course, report any earnings you make while collectingmaternity, sickness or parental benefits. If you chose not to complete reports, you mustdeclare your earnings by calling the telephone information service at 1 800 206-7218, from8:30 am to 4:30 pm, and press "0" to speak to a representative.Various types of earnings: Earnings paid or payable by your employer at the end of youremployment or while you are receiving benefits, generally affect payment of your benefits.How much will you receive? The basic benefit rate is 55% of your average insuredearnings up to a maximum amount of $435 per week. Your EI payment is a taxableincome, meaning federal and provincial or territorial taxes, if it applies, will be deductedfrom your payment. If your benefit rate is less than $435 and you are in a low-incomefamily — net income up to a maximum of $25,921 per year — with children and you oryour spouse receive the Canada Child Tax Benefit (CCTB) , you could be entitled to theFamily Supplement. The weekly EI payment and the number of weeks to be paid remainthe same even if you give birth to more than one child at the same time. At the same timeConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 58

you present a claim for maternity benefits, yourself or/and partner can ask for parentalbenefits.Termination of a pregnancy: When a pregnancy terminates within the first 19 weeks ofpregnancy, it is considered an illness under EI. If that is the case, sickness benefits maybe paid as long as the qualifying conditions for sickness benefits are met. On the otherhand, if the pregnancy terminates in the 20th week or later, the claim for benefits can beconsidered for maternity benefits if the qualifying conditions for maternity benefits are met.Personal Leave of Absence[back to top]Associates on the active payroll with at least 1 year of service working 20 hours or moreper week, may apply for an unpaid personal leave of absence at any time. All requests forpersonal leave are deemed to be for personal reasons and may or may not be granted inthe sole discretion of the associate's manager and/or Divisional Manager/DepartmentHead._________________________________________________________________________Who can take a Personal Leave of AbsenceRequests for leave will be judged on their merit, by the manager, having regard forindividual circumstances, such as, the purpose of the leave, the performance and length ofservice of the associate, the frequency of such requests, and the impact of the associate'sabsence on club/department operations. Such leaves, if granted, will be without pay._________________________________________________________________________Health BenefitsPlease contact policies@goodlifefitness.com for further information._________________________________________________________________________VacationPlease contact policies@goodlifefitness.com for further information._________________________________________________________________________Requesting a Leave of AbsenceAssociates must fill out a ‘Leave of Absence Request’ form to give to their manager forapproval, as far in advance of the date of commencement of the requested leave as ispossible. Whenever possible, associates are requested to first use vacation beforerequesting a Personal Leave of Absence.Requests for Personal Leave without pay, of 3 working days or less, may be authorized bythe associate's manager. Requests for Personal Leave without pay, in excess of 3 workingdays, require the approval of both the associate's manager and the DivisionalManager/Department Head._________________________________________________________________________Upon return from a Personal LeaveUpon the request of a Personal Leave of Absence, manager’s will decide whether theassociates current position will be held open, or if another position will be made availableto them upon their return from leave.Personal Emergency Leave – Ontario Only[back to top]GoodLife associates in Ontario are entitled to job-protected personal emergency leave,without pay, to a maximum of 10 days each calendar year for personal illness, injury ormedical emergency or for the death, illness, injury, medical emergency or urgent matterrelating to:1. A spouse or same sex partner (includes both married and unmarried)2. A parent, step-parent, foster parent, child, step-child, foster child, grandparent, stepgrandparent, grandchild or step-grandchild of the associate or the associate'sspouse or same sex partner3. The spouse or same sex partner of an associate’s child4. A brother, sister, step-brother/sister, half-brother/sisterConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 59

5. A relative who is dependent on the associate for care or assistanceUrgent MatterDeath, illness, injury or medical emergency of an “urgent matter” concerning an individuallisted above. An urgent matter is an event that is unplanned or out of the associatescontrol and raises the responsibility of serious negative consequences, includingemotional harm, if not responded to.Examples of ‘urgent matter’• Associates babysitter calls in sick• The house of the associate’s elderly parent is broken into and the parent is veryupset and needs the associates help to deal with the situation.• The associate has an appointment to meet with their child’s counsellor to discussbehavioural problems at school. The appointment could not be scheduled outsidethe associates working hours.Non Urgent matters:• An associate wants to leave work early to watch their daughter’s track meet.• An associate wants the day off in order to attend her sisters wedding as abridesmaid.• Associates are not entitled to personal emergency leave for medically unnecessarycosmetic surgery unrelated to an illness or injury._________________________________________________________________________Notifying your ManagerAn associate must inform their manager before starting the leave but if the associate hasto start the leave before notifying their manager they must do so as soon as possible.Notice does not have to be given in writing._________________________________________________________________________Proof of EntitlementA manager may require an employee to provide reasonable evidence in the circumstancesthat they are eligible for personal emergency leave.Family Medical Leave[back to top]GoodLife associate are entitled to unpaid, job-protected Family Medical Leave for themaximum specified period based on the province of residence. Please contactpolicies@goodlifefitness.com to determine the length of your Family Medical Leave._________________________________________________________________________Who can take Family Medical Leave?An associate qualifies for Family Medical Leave if they have to provide care or support tocertain family members for whom a doctor has issued a certificate indicating that thisperson has a serious medical condition with a significant risk of death occurringwithin a period of 26 weeks. The medical condition and risk of death must be confirmedin a certificate issued by a doctor.Care or Support means: providing psychological or emotional support, arranging for careby a third party provider, or directly providing or participating in the care of the familymember. The family member does not have to live in the Canada for an associate to takethe leave._________________________________________________________________________Medical CertificateAn associate does not have to have the medical certificate before they can take the leave.The right to the leave is dependent upon the issuance of the medical certificate and theleave must be complete within the 26 week period specified in that certificate.GoodLife can ask an associate for a copy of the certificate from the doctor toprovide proof that the associate is eligible for the leave. The certificate must beprovided to GoodLife as soon as possible and must state that the family member has aConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 60

serious medical condition with a significant risk of death occurring within a specified26 week period.Notifying your ManagerAn associate must inform their manager in writing that they will be taking a FamilyMedical Leave. If the leave is not taken all at once, the associate must provide noticeeach time they begin a new part of the leave._________________________________________________________________________Compassionate Care BenefitsAssociates can apply for ‘Compassionate Care Benefits’ through Employment Insurance(EI). A copy of the medical certificate submitted to Human Resources and SocialDevelopment Canada to apply for these benefits may also be used for the purpose ofFamily Medical Leave. The benefits from EI will be paid for 6 weeks. To apply, contactthe nearest Human Resources and Social Development Canada building. Family MedicalLeave is available to an associate whether he/she applies for federal EmploymentInsurance Compassionate Care Benefits or not._________________________________________________________________________Family Members for whom Associates May Take Family Medical Leave1. an associate's spouse; including a person living with the associate in a conjugalrelationship outside marriage2. a child, step-child of foster child of the associate or the associate's spouse;3. a parent, step-parent or foster child of the associate or the associate's spouse;4. a brother, step-brother, sister or step-sister of the associate;5. a grandparent or step-grandparent of the associate or the associate's spouse;6. a grandchild or step-grandchild of the associate or the associate's spouse;7. a brother-in-law, step-brother-in-law, sister-in-law or step-sister-in-law of theassociate;8. a son-in-law or daughter-in-law of the associate or the associate's spouse;9. an uncle or aunt of the associate or the associate's spouse;10. a nephew or niece of the associate or the associate's spouse;11. the spouse of the associate's grandchild, uncle, aunt, nephew or niece; and12. any other person who considers the associate to be "like a family member."_________________________________________________________________________People that are “like a family member”Associates wishing to take Family Medical Leave for a person under the "like a familymember" category can be required by to provide a completed copy of the "CompassionateCare Benefits Attestation" form available from HRSDC._________________________________________________________________________If the family member does not pass awayAn associate’s entitlement to Family Medical Leave will not reduce his/her entitlement to10 Personal Emergency Leave days. Furthermore, if an associate’s family member doesnot die within the period referenced in that certificate, the associate can take anotherFamily Medical Leave thereafter in respect of that family member (as long as the aboverequirements are again followed by the associate).Medical Leave of Absence[back to top]If an associate suffers from an injury, illness and/or disability that prohibits him/her fromworking in his/her current position or a modified position (on either a full-time or part-timebasis), GoodLife will grant the associate an unpaid medical leave of absence subject to,and in accordance with, the following terms and conditions:Associates needing to take a medical leave must provide their Supervisor with a doctor’snote confirming, among other things, that they suffer from a legitimate injury, illness and/ordisability that prohibits them from working in their current position or a modified position(on either a full-time or part-time basis). The Supervisor must contact the PeopleDepartment immediately and send the doctor’s note to policies@goodlifefitness.com. TheConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 61

doctor’s note must also indicate the expected duration of the associate’s absence fromwork for medical reasons.Please contact policies@goodlifefitness.com for further information.Reservist Leave of Absence[back to top]Reservists that have at least 6 consecutive months of service with GoodLife will begranted an unpaid leave of absence for the duration of any service outside of Canada, orany emergency service inside Canada, with the Canadian Forces. Once the associate’sdeployment is over, the associate can return to the same job or to a similar position if theold job no longer exists.Please contact policies@goodlifefitness.com for further information regarding this leave.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 62

On the Job at GoodLifeMember Health and Safety[back to top]GoodLife is vitally interested in the health and safety of its members and will strive toprotect and ensure the safety of members while on GoodLife premises. Protection frominjury and disease is a major continuing objective and GoodLife will make every effort toprovide a safe and healthy environment. All supervisors and associates must be dedicatedto the continuing objective of reducing the risk of injury to members.In the event that a member appears to be in distress, for any variety of reasons, it isimportant that GoodLife associates are able to identify the situation, and reactappropriately.GoodLife will act in compliance with all Provincial workplace health and safety legislation._________________________________________________________________________All supervisors and associates are responsible to provide the following to GoodLifemembers:• Proper instructions in the use of GoodLife equipment, machines, products, services,and fitness areas• Assistance in the event that a member is visibly struggling, or having difficulty with anyGoodLife equipment, machines, products, services and/or fitness areas, asappropriate• Healthy living information and advice regarding nutrition, lifestyle, and fitness• Encouragement for members regarding all aspects of fitness, and healthy living• Assessment of the overall fitness levels of members, ensuring they are not engaging inunsafe activity• Communicate concerns in a non-threatening manner, taking care to avoid conflict• Inform management in the event that a member is engaging in unsafe activity that theyhave been warned of but are choosing to disregard_________________________________________________________________________Member’s Personal ConcernsIn the event that an associate is given cause for concern regarding the health and safetyof a member due to external factors beyond the immediate control of either the associateor GoodLife, the associate shall take care to observe the situation to ensure that themembers health and safety is protected while on GoodLife premises.Health and safety factors that may affect members include:• Illness / Disease;• Alcohol or Drug Addictions;• Child and Domestic Abuse;• Assault;• Depression and Suicide;• Eating Disorders;• Mental Illness;• Divorce_________________________________________________________________________What to do if a member confides in an associate:1. If a member confides personal information to an associate regarding a mentalillness, addiction, domestic abuse, depression, suicide etc, associates areencouraged to listen in a sympathetic manner and advise the member to seekhelp from a qualified professional by giving them the appropriate phone numberand website form the list of ‘Free Resources Available in Canada’.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 63

2. Associates should avoid offering advice that relates to a personal memberissue.3. If a member discloses personal medical information it should be kept privateand confidential. Likewise, associates should avoid providing any nutritionaladvice, as they may be unaware of any drug interactions that may take place,and may cause health problems as a result.4. Associates that receive information from a member regarding any physicalillness, substance abuse, mental health, etc. should maintain confidentialityregarding the information._________________________________________________________________________How to approach a member:1. Associates wanting to approach a member regarding any of the above Health andSafety factors must first contact the below individuals to ensure the properapproach and to role play if needed:-Member Experience Manager, Brad Lindsay at Office (519) 661-0190 x231, Mobile(519) 536-5190 or-Health & Safety Coordinator, Rob Duncan at Office (416) 536-9849, Mobile (647) 223-1422_________________________________________________________________________What to do if a member poses a threat to other associates or members in the club:1. In the event that a member is reasonably suspected of being under the influence ofeither alcohol, illegal drugs, or any such substance that may reasonably increaseeither their own risk of accident or injury, or that of other members, or that causesthem to negatively impact the surrounding members in any way, associates arerequired to advise the member that they must cease their actions. The managershould be contacted, and the member escorted off of the premises if appropriate.2. In the event that a member poses a threat to other associates or members in theclub, associates must advise the member that they must cease the unsafe action,and immediately report the behavior to their manager.3. In the event that a member discloses information regarding their intention to causeserious bodily harm to either themselves or others, or any intention to cause willfuldestruction to property, the associate that receives this information must disclosethis information to their manager and appropriate authorities.4. Managers should report any incidents listed above to the following individual:-Member Experience Manager, Brad Lindsay at Office (519) 661-0190 x231, Mobile(519) 536-5190_________________________________________________________________________It’s important to remember that we must handle serious personal issues being experiencedby our members in a very careful and sensitive manner.While associates may develop personal relationships with members, and may be inclinedto offer personal advice, associates must remember that any advice or statements madeduring regular working hours may construe professional advice, slander, or harassment,and could place GoodLife at risk of legal liability.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 64

Inspections by Government Agencies[back to top]These inspectors have an important job: their role is to investigate workplaces and report itif they discover that a business is not following the rules as set out in the applicableprovincial legislation. Treat these individuals respectfully and provide them with theinformation they require.Some of the government inspectors’ rights include:• enter any part of the workplace at any time – they are not required to give advancenotice• speak to any associate who has been involved with workplace inspections• handle or use any equipment• look at documents or records and remove them from the club to make copies• take photographs• close down parts (or all) of the club to do their own inspection• require that any equipment be turned on or operated in their presence• look at or copy any material related to training of associates• seize anything that the inspector believes to be relevant evidence_________________________________________________________________________What do I do if a government inspector visits my club?1. Greet them professionally and politely – ask for a business card2. Assist them by answering questions clearly and honestly3. Show confidence in your club and GoodLife’s Health & Safety Program4. Know exactly where your documentation is kept and be familiar with the commonrisks5. Show them any documentation they request6. Permit them to speak to members of your committee7. If they request contact information, refer them to your Divisional Manager or to RobDuncan in the Member Experience Dept. or a member of the Associate RelationsTeam8. Ask for the reason for their visit – they are not required to tell you but may explain9. Immediately after the inspector leaves contact:• your Divisional Manager• Brad Lindsay (blindsay@goodlifefitness.com)• Rob Duncan in the Member Experience Dept. (rduncan@goodlifefitness.com) and• Alana Free in the People Department (afree@goodlifefitness.com) providing:a. date and time of visitb. government agencyc. name of inspectord. reason for visit (if known)e. any documentation you were given10. Failure to report a government inspection or any orders issued could result indisciplinary action, including a written warning or loss of pay._________________________________________________________________________It is essential that associates understand that:• Inspectors can visit at any time – they are not required to inform the General Managerin advance and the General Manager does not have to be present during theirinspection• Associates must greet the inspector professionally and politely• Associates must inform you immediately of the inspector’s visit and provide you withany documentation the inspector may have providedConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 65

Canada Food Inspection Agency[back to top]Because GoodLife is committed to protecting the health of its associates and members, asper the Canada Food Inspection Agency www.inspection.gc.ca all food to be sold inGoodLife clubs must be labelled and prepared in kitchens inspected by the Board ofHealth in any given city.Although we appreciate the efforts and kindness, food products made by associates suchas cookies, baking, bread etc. cannot be sold in the clubs for consumption._________________________________________________________________________FundraisingHaving food as part of a fundraising event is a very popular choice. In order to ensure thatall GoodLife Clubs positively reinforce the regulations provided by the Board of Health,please follow these simple rules to ensure complete safety for all involved.Bake SalesA sign must be posted stating: “Food has not been prepared in a kitchen inspected bythe Board of Health”PT Menu SamplersPT Menu samplers are NOT permitted at fundraising events as many items fall in thehazardous food groups (such as meat and dairy)Sampling of Food from a CookbookSome clubs have chosen to put together a cookbook as part of their fundraising initiatives.If you choose to do this and make recipes to offer as samples to assist in selling thebooks, the following sign must be on display: “Food has not been prepared in a kitcheninspected by the Board of Health”_________________________________________________________________________Managers are responsible for communicating this policy to associates and ensuring thatit’s adhered to at all times.For further information on the Act and Regulations please visithttp://www.inspection.gc.ca/english/reg/rege.shtmlConduct and Behaviour[back to top]Acceptable conduct and behaviour of associates is necessary for the orderly operation ofGoodLife, the benefit and protection of the rights and safety of associates and theprotection of GoodLife’s assets. Associates are expected to govern their conduct andbehaviour in a manner consistent with these guidelines.GoodLife is committed to maintaining a work environment that is free of illegal drugs,alcohol, firearms, explosives, or other improper materials. The possession, transfer, sale,or use of such materials on company premises or during the conduct of GoodLife'sbusiness is prohibited. A breach of this policy will result in discipline up to and includingdismissal._________________________________________________________________________Appropriate Conduct and Behaviour includes but is not limited to:1. Adherence to published policies, practices and procedures;2. Competent performance of all job duties assigned;3. Prompt and regular attendance at work;4. Courtesy to and respect for co-workers, members, suppliers or any other personwho deals with GoodLife in the conduct of its business;5. Wearing proper business attire/uniforms (as outlined for each position) andfootwear during working hours, appropriate to the job performed. Where uniformsConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 66

are not designated (e.g. Home Office) T-shirts, jeans, shorts, or other such casualattire are not acceptable attire; 'flip flops', etc. are not acceptable footwear._______________________________________________________________________________________________Inappropriate Conduct and Behaviour includes but is not limited to:1. Loitering or loafing;2. Leaving work early or leaving department without supervisor's permission;3. Using obscene, abusive language;4. Spreading malicious gossip or rumors;5. Harassing, threatening, intimidating, coercing any person at any time;6. Horseplay or throwing objects;7. Reporting to work or working while under the influence of alcohol, drugs, orprohibited substances;8. Creating or contributing to unsanitary conditions;9. Insubordination;10. Excessive personal use of telephones or computers_______________________________________________________________________________________________Unacceptable Conduct or Behaviour includes:1. Possession of guns, weapons or explosives on company property;2. Possession, consumption or use of alcoholic beverages or illegal substances whileon company premises;3. Solicitation of other associates, for any reason, during working hours;4. Willful violation of safety rules and procedures;5. Willful neglect and/or mishandling equipment and machinery;6. Unsafe driving of company vehicles;7. Theft and/or falsification of company records;8. Indecency;9. Fighting;10. Poor or careless work;11. Sleeping during shift12. Accepting gifts, or gratuities from firms, organizations, agents, associates, or otherindividuals who may or do conduct business with GoodLife with a dollar value inexcess of $20.00 per itemUnacceptable conduct can result in disciplinary action up to and including terminationwithout notice or pay in lieu of notice. Associates who deliberately withhold informationconcerning another associate’s violation of law or these guidelines will also be subject toappropriate discipline.Child Pornography[back to top]Child Pornography is illegal!It is illegal to possess or disseminate child pornography and any associate or managerguilty of this activity will immediately be reported to the police.The use of any Company property for any purpose related to child pornography is groundsfor the immediate termination of employment for just cause.It is considered illegal in Canada to possess child pornography (see child pornographydefined) on your computers, laptops, wireless devices, portable electronic media includingbut not limited to optical media (CD, DVD), USB thumb drives, etc., servers, work spacesand desks._____________________________________________________________________________Employee Reporting ObligationsGoodLife associates are expected to immediately report any child pornography activity ormaterials to their manager or supervisor.Managers and supervisors are hereby directed to report to the police any associates’involvement in any behavior linked to child pornography as well as notify the ChiefConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 67

Information Officer, Brett McClelland at Home Office (519) 661-0190 ext 305 or mobile(519) 857-4488.Under the new (pending) Bill 37, Child Pornography Reporting Act 2008, while there is noobligation to look for child pornography, individuals will have liability for failing to report anysuch representation or material which is discovered. Failure to report will result in apotential fine of up to $50,000, imprisonment for up to 2 years, or both.No person with an obligation to report can rely on anyone else to make the report. As aresult, if suspected child pornography is discovered in a workplace, every individual wholearns of it has an independent obligation to report. Provisions in the legislation also makeit an offence for an employer to impose any negative consequence against an individualwho makes such a report._____________________________________________________________________________Child Pornography DefinedThe Canadian Criminal Code defines child pornography as pictures, films, videos or othervisual representations that show persons under the age of 18 engaged in sexually explicitactivities. These images can also be considered pornographic if they show the sexualorgans or the anal region of a person under 18 for expressly sexual purposes.Child pornography can also include written or audio material that describes or recordssexual activity with a person under the age of 18. It is an offence to possess, create,advertise or distribute any material that meets this definition of child pornography.It is also illegal to counsel or encourage illegal sexual activity with someone under the ageof 18. Illegal sexual activity could include anal sex, sex with a person of authority, or sexfor the purposes of prostitution._____________________________________________________________________________The Canadian Criminal CodeSection 163 of the Criminal Code creates a number of offences in relation to thefabrication and distribution of “obscene” publications, or to possessing them for thepurpose of distribution. It is also an offence to mail obscene matter, or to give an “immoral,indecent or obscene” theatrical performance. These offences may be punished onsummary conviction or by indictment, with up to 2 years’ imprisonment where the lattercourse is chosen. There is also provision for the seizure and forfeiture of obscenematerials.Central to these prohibitions is the elaboration of what is obscene in section 163(8):For the purposes of this Act, any publication a dominant characteristic of which is theundue exploitation of sex, or of sex and any one or more of the following subjects, namely,crime, horror, cruelty and violence, shall be deemed to be obscene.Section 163.1 of the Criminal Code was enacted in 1993. It prohibits the production,distribution and sale of “child pornography,” and also makes it an offence to possess suchmaterial.________________________________________________________________________Our children are precious and vulnerable and must be protected by the community as awhole; please do your part to ensure their safety.Conflict of Interest[back to top]Associates must refrain from all Conflicts of Interest. If an associate becomes aware of, orbecomes involved in, a Conflict of Interest, he or she must immediately disclose suchConflict of Interest to his or her manager._________________________________________________________________________Outside ActivitiesWhile employed by GoodLife, associates must not, without prior written consent ofGoodLife, directly or indirectly, as principal, agent, shareholder, partner, associate or inConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 68

Information such as business strategies, marketing plans, sales projections or volumes,financial information, and trade secrets etc. must not be disclosed to, used by, ordiscussed with associates or third parties, without specific written approval or until itbecomes public._________________________________________________________________________Confidential or Proprietary InformationMeans any secret, confidential or proprietary information of GoodLife, or any secret,confidential or proprietary information entrusted to GoodLife by any other person or entity,which is not otherwise included in the definition of "Proprietary Information". This alsoincludes a list of actual or potential members, members and suppliers which:1. derives economic value, actual or potential, from not being generally known to, andnot being readily ascertainable by proper means by other persons who can obtaineconomic value from its disclosure or use; and2. is the subject of reasonable efforts by GoodLife to maintain its secrecy_________________________________________________________________________The term "Proprietary Information" includes any invention, discovery, idea, research,practice, technical and non-technical data, financial data, a financial plan, system, formula,design, product, improvement, machine, process, plans or programs developed, whetheror not patentable:1. during the period of and in the course of that person's employment with GoodLife,or2. on GoodLife's premises, or3. with the assistance of any of GoodLife’s associates, or4. with GoodLife's equipment or supplies_________________________________________________________________________All associates, as a condition of employment, will sign an Employment Contract with aConfidentiality Clause during their initial hiring documentation and any time when anupdated version requires signature.Home Office Dress Code[back to top]Home OfficeAll associates working at Home Office must be in professional attire at all times. Businesscasual attire is required._________________________________________________________________________Prohibited ClothingThe following clothing is prohibited for Home Office associates:1. denim of any colour to include pants, skirts or shirts2. t-shirts or sweatshirts with inappropriate logos3. athletic (work out) clothing4. shorts must have a minimum 6” inseam5. tops that don’t cover the midriff6. strapless tank tops7. bare feet and slippersCasual DayHome Office associates can wear denim on Fridays which is a designated “casual day”.Dependent on the department’s location, function and contact with the public, a supervisormay require that an associate dress above the minimum requirements outlined herein.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 70

Associate Uniforms[back to top]As a GoodLife associate you must be in proper uniform according to position in order toconsistently project a professional image and atmosphere to the members and visitors in away that will make all members feel comfortable.Your Current Uniforms Are Still OkAlthough the new Adidas uniforms have been released, if your current uniform is still ingreat shape, you can continue to wear it according to the following guidelines:November 1, 2009 – Customer Service Reps, General Managers, Assistant GeneralManagers, Member Care Managers, Fitness Trainers, Accelerated Management Trainees,Club Administrators and Membership Consultants must be in Adidas uniforms by this date.April 1, 2010 – All other positions not listed above must be in Adidas uniforms by thisdate.Managers are responsible for entering the associates new hire information into CAREprior to their first day of work to ensure they receive their User ID within 5-7 business daysof it being entered into CARE. Associates are responsible for ordering their uniformswithin 5-7 business days of their first day of work when they receive their User ID to theirgoodlifemakesiteasy email account. Associates should contact the Help Desk if they don’treceive their user ID within 5-7 business days of their start date.From the first day of work to the time the Adidas uniform arrives, new associates mustwear black bottoms, a black top (t-shirt, polo, golf shirt), appropriate foot wear according toposition and a name tag.Associates that do not adhere to the Uniform Policy will be asked to go home and return towork in appropriate attire. Associates are responsible for purchasing their uniforms asoutlined in this policy.** Associates in B.C., Newfoundland and Manitoba should ask their Divisional Manager forthe province specific uniform policy._________________________________________________________________________General Uniform Standards:1. Nametags must be worn at all times (does not apply to Child Minding associates)2. Visible body jewelry (e.g. nose or eyebrow piercing) or visible tattoos that would beconsidered offensive to the majority of the population (manager’s discretion) areprohibited; this decision will be at the manager/supervisor’s discretion3. Ball caps or hats are not permitted4. Hair and appearance must clean and styled5. Clothing must be ordered in sizes that fit (should not be loose or baggy)6. Cargo pants, carpenter pants, etc. are not considered dress pants7. Flip flops, boots/slippers, running shoes, yoga/jogging pants, shorts,sweatshirts/hoodies and workout pants are not permitted8. Denim tops, pants and skirts are not considered professional attire9. All clothing must be clean and ironed; if a shirt becomes discoloured a new onemust be ordered10. Associates in management or sales who are cold at work must wear thedesignated Adidas zip-up sweater or their own black sweater, black cardigan orblack suit jacket. All other associates must wear the red jacket or a plain whiteshort sleeve shirt under the GoodLife shirt if they are cold11. Full-time associates require 3 to 5 shirts to last throughout the weekConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 71

Associates expecting a childAssociates expecting a baby must order the largest size available in their particularuniform style. When this shirt no longer fits, associates can purchase a maternity shirt inthe same colour as the Adidas uniform, provided they are wearing their name tag and theappropriate bottoms as per the Uniform policy.________________________________________________________________________How to order the Adidas Uniform:1. Associates must refer to the instructions received to their goodlifemakesiteasy.comemail account on how to place an order on the Adidas website. Associates mustuse their “user ID number” that was also sent to their goodlifemakesiteasy.comemail account. New associates that start with GoodLife will receive their user IDwhen their goodlifemakesiteasy email account has been created approximately 5 –7 business days from the time the associate’s New Hire Information has beencorrectly and completely entered into CARE.2. Email Account Preparation: Associates must ensure they can log-in to their emailaccount! Information regarding how to access the goodlifemakesiteasy emailaccounts can be found in the GoodTimes eNewsletter. Associates experiencingdifficulties logging-in can speak with their General Manager who will provide theinformation.3. On the Adidas website, associates can click on their department and all of the staffuniform options will be displayed. There are mandatory and non mandatory uniformclothing to select from. Associates can review the staff uniform policy specific totheir position; there is also an FAQ section that will help to answer questions and a1-800 Adidas phone number available for associates having trouble placing theirorder.Additional Considerations:• When placing the order, a credit card is the only payment option thereforeassociates who don’t have a credit card must make arrangements with someonethey know who does have a credit card.• Orders will be shipped directly to either the club or address that the associaterequests (remember that someone must be at this address to receive theshipment). Associates will receive their uniform within 24-48 hrs of placing theorder and a $5 shipping charge will apply to each order.Dress Code for General Managers, Assistant General Managers and MemberCare ManagersMandatoryName TagWomen’s – Textured Argyle PoloMen’s – All Tour PoloBottoms – Regular black dress pantsor dress caprisConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 72

OptionalRed Training/Warm up JacketWomen’sMen’sOr your personal black sweater, black cardigan or black suit jacket.Dress Code for Membership Consultants and Accelerated ManagementTraineesM andatoryName TagWomen’s – Textured Argyle PoloBottoms – Regular black dress pants or dress caprisMen’s - All Tour PoloO ptionalRed Training/Warm up JacketWomen’sMen’sOr your personal black sweater, black cardigan or black suit jacket.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 73

Dress Code for Fitness Trainers, Customer Service Representatives andClub AdministratorsMandatoryName TagWomen’sRed Big Game ClimaCool Polo ShirtMen’sBottoms – Regular black dress pants or dress caprisOptionalFoot wear – classic workoutShoesWomen’s Red Training/Warm up Jacket Men’sDress Code for Child Minding AssociatesMandatoryBottoms – Casual black pantsFoot wear – classic workout ShoesOptionalWomen’sRed Training/Warmup JacketMen’sConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 74

Dress Code for Member AmbassadorsMandatoryName TagFrontBackBottoms – same as Personal TrainersFoot wear – classic workout ShoesOptionalRed Training/Warm up JacketWomen’sMen’sDress Code for Personal Trainers, Fitness Managers and Assistant FitnessManagersMandatoryMen’s Top ChoicesFoundation Short Sleeve Top Tech Fit Long Sleeve Tech Fit Short SleeveCompression TopCompression TopConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 75

Women’s Top ChoicesName TagFoot wear –classic workoutShoesPower Short Sleeve TopCore Long Sleeve TopWomen’s Bottom ChoicesWindwear Pant Studio Capri Soft Knit Short Studio PantMen’s Bottom ChoicesTeam Tech Fit Clima ShortVortex Wind PantEmployment of Relatives[back to top]GoodLife encourages associates to refer family and friends for available positions withinthe company. Relatives of current associates may be employed only where:1. they will not be working directly for or supervising a relative;2. they will not be working directly above the relative's immediate superior; or3. they will not be working directly for the relative's immediate subordinateAssociates will not be transferred into a reporting relationship described above. In othercases where a conflict or the potential for conflict arises, even if there is no supervisoryrelationship involved, the parties may be separated by reassignment.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 76

An associate who is related to a candidate for employment will not be involved in anyaspect of the recruiting process so as to avoid any conflict of interests or allegations ofpreferential treatment."Relative" means any person who is a spouse, partner, child, sibling, parent orgrandparent of the associate or is related by marriage and includes in-laws, individualswho were previously married and are presently divorced, or whose relationship with theassociate is similar to that of persons who are family members or related by marriage._________________________________________________________________________Notifying your Manager of your relationshipAssociates are requested to notify their managers of their relationship to other associates,or to candidates for employment.Acceptance of Gifts[back to top]GoodLife asks you not to accept from any individual or organization doing business orcompeting with GoodLife, any payment or compensation whatsoever, or any gift,entertainment, hospitality, or other favour of more than token value, or which goes beyondwhat is customary and accepted business practice.An associate, who has any doubt about the propriety of accepting or giving any gift,favour, etc., should contact their manager.An associate who uses GoodLife products or services for personal gain will be terminatedimmediately without notice._________________________________________________________________________Notify your ManagerAssociates must report, within 24 hours, to the manager, the receipt by the associate ormembers of the associate's immediate family of any gift, favour, and/or entertainment ofmore than token value. ‘Token Value’ means a gift, favour, entertainment, hospitality orother such item which exceeds a retail value of $20.00.Smoking in the Workplace_________________________________________________________________________Home OfficeSmoking is prohibited on GoodLife Home Office premises to include the side entrance,sidewalk or step at the front of the building, side parking lot, or anywhere inside thebuilding. Smoking is permitted in the parking lot behind GoodLife Home Office._________________________________________________________________________ClubsSmoking is strictly prohibited where members or the public can see a GoodLife associatesmoking. Associates are to change out of their uniforms when smoking._________________________________________________________________________Adherence to this policyCompliance with the policy is expected, based upon the importance of the message thisconveys to our members as well as the implications the policy has on the health and well-[back to top]GoodLife is a smoke-free environment. This policy communicates GoodLife’s position onsmoking and its expectation for all associates. The health hazards of tobacco use havebeen recognized by GoodLife and as the leader in the fitness industry we have aresponsibility to our members and the public to encourage healthy lifestyles and tostrongly assert the risks of tobacco use. The use of tobacco products by our associatescompromises the image of GoodLife as the leader in health and fitness.being of our associates. Adherence to this policy is a condition of continued employmentwith GoodLife.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 77

Associates smoking on GoodLife premises are in violation of the Smoking policy andsubject to corrective action.Scent Reduction[b ack to top]To ensure the health and well-being of associates against environmental chemicalsensitivities, all GoodLife associates are to refrain from using scented products whengoing to work and for the duration of the shift._________________________________________________________________________Principles of Scent Reduction1. Eliminate the use of perfume, cologne/aftershave, scented air fresheners, scentedcandles and potpourri from the workplace;2. Reduce the use of heavily scented personal hygiene products such as hairproducts, lotions/creams and deodorant;3. Reduce heavily scented flowers in the workplace such as Lilacs, Hyacinth,Flowering broom etcScented products may provoke symptoms in sensitive individuals. In sufficientconcentrations, scented products may trigger responses to those with allergies orsensitivities to certain substances._________________________________________________________________________Symptoms of scented productsScented products can cause a variety of symptoms such as, but not limited to: sore throat,runny nose, sinus congestion, wheezing, shortness of breath, headaches, migraines_________________________________________________________________________Scented products fall into 2 main categories:1. Personal ProductsHygiene: cosmetics, perfumes, colognes, after-shave and scented shaving creams,deodorant, shampoo/conditions, hair spray, lotions and creamsNon Hygiene: scented candles, potpourri and scented ornaments2. Non personal productsProducts with a distinct scent or fragrance to include scented household, industrialcleaning products, building materials, air fresheners, and some types of flowers.“Scent-free”: product labeled unscented, scent-free or fragrance-free by themanufacturer.“Scent-reduced”: product defined as having minimal scent, labeled hypo-allergenic or forsensitive skin.Email and Internet use[b ack to top]GoodLife e-mail and Internet resources are business systems for use by authorizedassociates to conduct legitimate GoodLife business only. Use of an Internet/e-mailconnection for any purpose that is not specifically related to GoodLife business isprohibited during working hours.Permitted UsesProhibited UsesEmail • Sending, receiving,• Checking personal e-mailforwarding and replyingto • Sending confidential ormessages for businesspurposesprivileged information ofany kind (Financial,management, legal oroperational) tounauthorized personnel• Opening file attachmentsor enclosures withoutperforming a virus scan• Forwarding e-mail chainConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 78

lettersInternet Browsing • Connecting to and viewing • Surfing the webany web page for welldefinedbusiness purposes• Connecting to any site fornon-business purposes• Printing web pages for • Connecting to web sitesbusiness purposesrelated to illegal, immoral,and/or unethical materialsDownloading Data • Downloading• Downloading or installingfiles/information from reliablemajor commercial sites to anisolated or quarantinedfolder until downloaded datais scanned for viruses,worms, etc.unauthorized files orprograms not related toCompany business,including file sharing,instant messaging, screensavers, online radio andpictures.• Installing software• Downloading files orinformation related toillegal, immoral, and/orunethical materialsInternet Newsgroups • Approved groups may be • Accessing any group foraccessed for businessnon-business reasonspurposes by approved users• Accessing newsgroupsrelated to illegal, immoral,and/or unethical materials• Accessing Internet chatrooms on any topicPrivacyAlthough GoodLife respects the privacy of its associates, associate privacy does notextend to the associate's use of GoodLife e-mail and Internet systems. No person usingsuch resources should expect privacy in their communications. All e-mail communicationsand information downloaded from the Internet constitute company property.Goals1. to protect the reputation and resources of GoodLife, its members, and theInternet/e-mail communities at large, from irresponsible or illegal activities;2. to ensure privacy, security and reliability of GoodLife’s network and systems aswell as the systems of GoodLife members;3. to establish guidelines for the acceptable use of GoodLife network;4. to define generally those actions which are considered abusive and prohibited;5. to outline procedures for handling and reporting abuse to GoodLife._________________________________________________________________________Users of GoodLife Internet and e-mail systems are strictly prohibited from creating,transmitting, distributing, forwarding, downloading and/or storing anything which:1. infringes any copyright, trademark, trade secret, or other intellectual property right;2. is obscene, immoral, unethical or pornographic;3. is libellous, defamatory, hateful, or constitutes a threat or abuse;4. encourages conduct that would constitute a criminal offence or give rise to liability;5. harasses the receiver, whether through language, frequency, or size of messages;6. is considered e-mail junk, spam or chain e-mail;7. forges or misleads the sender's identity;8. divulges private and/or confidential information related to GoodLife business, itsmembers and/or its associates;9. violates any of GoodLife policies including policies related to Conduct andBehaviour or Workplace Harassment_________________________________________________________________________Monitoring internet and e-mailConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 79

Internet and e-mail use may be monitored from time to time, without notice, to evaluatemember service and to determine how the system is being used. Associates should notexpect privacy when using e-mail or Internet resources.Access to your internet and emailWhen necessary, due to vacations and other absences, GoodLife may request access toan associate's e-mail and Internet accounts in order to properly continue work. Associatesare required to provide this access upon request._________________________________________________________________________DownloadingDownloading of any programs, software or data from the Internet or e-mail directly to auser's computer terminal is prohibited unless advance written authorization is obtainedfrom the Information Systems Manager. Such material must first be screened throughGoodLife computer security systems including virus scans._________________________________________________________________________Social Networking SitesThe use of social networking sites, e.g. Facebook, My Space, Friendster, etc. andpersonal Blogs/Twitter are considered an unacceptable use of personal internet atGoodLife. The use of these sites during normal working hours or breaks is notpermitted.Consequences of using Social Networking Sites and BlogsThe abuse of personal internet use on these sites using either GoodLife’s owned andoperated equipment or personal internet access devices during normal working hourswill be subject to disciplinary action, up to and including termination of employment.Associates that use these sites at home during personal time are prohibited fromdisseminating any private organizational information therein, or any negative commentsregarding GoodLife._________________________________________________________________________E-mail/Internet Policy Acknowledgement and AgreementPlease click on this link ‘E-mail and Internet Acknowledgemen t Form’ to print and sign thisacknowledgement form.Cell Phone, Blackberry and Laptop Use[b ack to top]To allow the Associates of GoodLife Fitness Clubs to do their jobs effectively, someAssociates are entitled to make use of approved wireless devices and other handheldwireless devices for business purposes.This policy outlines the wireless device options supported by GoodLife, guidelines forappropriate use, and other administrative issues relating to wireless device acquisition andreimbursement. This policy was created in order to enhance Associate safety, limitcorporate liability, protect sensitive or private data and help control telecommunicationscosts.Eligible AssociatesThe table below shows which devices and / or laptop Associates in the indicated roles areeligible for:RoleCluster ManagerDM, VP, Chief, DirectorGroupEx RegionalGroupEx Regional CoordinatorHealth & Safety CoordinatorQualifies ForNoneCell Phone or Blackberry & a LaptopBlackberryBlackberryBlackberryConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 80

Home Office support role requiring afterhours availability to resolve criticalbusiness issues, e.g. InformationSystems support.Member Experience ManagerMember Experience RegionalPT RegionalSenior PT RegionalExceptions / Additions to the aboveSome roles that involve at least 50%travel may qualify, but will requireapproval from the CompensationCommittee.Cell phone or Blackberry & a LaptopBlackberryCell PhoneCell phoneBlackberryRequires written (email) approval from theCompensation Committee to the appropriatemanager & to the IS Help DeskAn Associate Request Form is to be used to request a wireless device and must be signedby the Associate’s department head before submission to the IS department.It is also possible for Associates to use privately owned wireless devices for businesspurposes. If this is the case, the Associate must get approval from their department headto do so. This policy must also be read and signed by the Associate in question. Allexpense forms for reimbursement of cost incurred due to business calls must be submittedto the appropriate department head. Financial reimbursement for these calls is not theresponsibility of the IS department._________________________________________________________________________Supported Wireless Devices, Services, and Related EquipmentIn order to take advantage of volume pricing discounts and to reduce support costs to theIS department, GoodLife has standardized on a limited number of wireless device makes,cellular service packages, cellular providers, and cellular accessories. The current list ofphones purchased and supported by GoodLife as well as the monthly plan details areavailable from the IS Help Desk at helpdesk@goodlifefitness.comAdditional cellular equipment available from, and supported by, the IS department forbusiness purposes includes:• Headset (wired)• Car power adaptor• Belt Clip (if requested)_________________________________________________________________________Non-Standard UnitsIf an Associate would like a non-standard wireless device, then the Associate shouldconsult with Information Systems Department (Help Desk) to ensure that the wirelessdevice is on the support list as the Information Systems (Help Desk) will provide supportonly on a limited range of wireless devices. Technical support will be limited to issuesrelated to synchronization with Outlook.GoodLife is not responsible for any loss of data or corruption of data that may occur as aresult of using a wireless device. GoodLife is not responsible for lost, damaged or stolenwireless devices.________________________________________________________________________________Appropriate UseIt is imperative that wireless devices owned by GoodLife or any wireless device used toconduct GoodLife business be used appropriately, responsibly, and ethically. Thefollowing rules must be observed:1. Personal calls are not permitted on any wireless device owned by GoodLife. In theevent that you make or receive a personal call on a GoodLife wireless device, youmay be asked in writing to reimburse GoodLife for all costs incurred and expectedto pay this reimbursement within 30 days of notification.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 81

GoodLife will only use this data to potentially determine the feasibility and economicviability of future projects. GoodLife will not use the data collected from the GPS units tomonitor individual employee performance. The data will not be used as evidence of non-2. GoodLife will not pay for any personal calls made using a privately owned wirelessdevice that is also used to conduct company business.3. GoodLife will reimburse Associates for business calls made on a pre-approvedprivately owned wireless device. All submissions for reimbursement must beaccompanied by sufficient and appropriate documentation (i.e. original wirelessdevice bill).4. No Associate is to use a company-owned wireless device for the purpose of illegaltransactions, harassment, or obscene behavior, in accordance with other existingAssociate policies.5. No Associate should download ringtones or other non-business related content totheir wireless device.6. In order to demonstrate appropriate respect for co-workers, it is recommended thatAssociates turn off wireless devices during company meetings and gatherings.7. Associates are to comply with the laws related to cell phone / wireless device usewhile driving in the vicinity in which they are driving.8. If a company-owned wireless device is damaged, lost, or stolen, it must bereported immediately to the IS department.9. If a company-owned wireless device or related equipment is damaged, lost, orstolen through the negligence of the authorized user, that individual will beresponsible for reimbursing GoodLife for all repair or replacement costs.10. Prior to initial use for connecting to the corporate network, all wireless devicehardware, software and related services must be registered with IS.11. Associates, contractors, and temporary staff will make no modifications of any kindto company-owned and installed wireless hardware or software without the expressapproval of GoodLife’s IS department. This includes, but is not limited to, splittunneling, dual homing, non-standard hardware or security configurations, etc.12. The wireless access user agrees to immediately report to his/her manager andGoodLife’s IS department any incident or suspected incidents of unauthorizedaccess and/or disclosure of company resources, databases, networks, etc.13. If an authorized cell-phone user does not return a company-owned wireless devicewhen requested, he or she will be required to reimburse GoodLife the purchaseprice of the wireless device.14. Associates are expected to minimize wireless device costs by using a land linewhenever possible (e.g. while at Home Office or a GoodLife club), and by usingavailable Internet connectivity whenever possible for laptop use, rather than usingthe wireless device to connect to the Internet. The exception is where theAssociate is calling another Associate who also has a wireless device. In this casethe Group-to-Group calling feature allows for a less expensive call.15. Associates that travel frequently to the US should ask the IS Help Desk to ask theGoodLife mobile service provider to enable the Connect USA feature, whichreduces roaming charges in the US._________________________________________________________________________Return of EquipmentAssociated are required to return devices to the IS Help Desk at Home Office when thedevices are in need of repair or when the devices are being replaced with newer ones. AllAssociates that are leaving the company through termination, resignation or maternityleave are required to return any GoodLife devices to the IS Help Desk at Home Office.Global Positioning System TrackingMany wireless devices in use by GoodLife are embedded with a global positioning system(GPS) that tracks the location of the device at all times. All data collected from the GPSunit is the property of GoodLife. Associates are entitled to view the data collected by theGPS unit embedded in their assigned wireless device.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 82

performance and cannot be used as a cause for employee discipline or termination. Allother uses of the data are strictly prohibited.Reporting of Wireless Device CostsThe IS Help Desk is responsible for using the Bell ECARE system to produce usagereports. The Help Desk views the reports, noting any anomalies, and reports these to therespective users. If there are persistent cost overruns these are reported to theappropriate manager(s) for action and follow up._________________________________________________________________________Policy Non-ComplianceFailure to comply with the Wireless device Policy may result in suspension of wirelessdevice use privileges, disciplinary action, and possibly termination of employment._________________________________________________________________________Associate DeclarationBy selecting I Agree or typing I Agree in the Subject line of your email and responding tojholmes@goodlifefintess.com, you the user agree to adhere to all GoodLife policies andterms of use for as long as you are considered the authorized user of the device.QuestionsAll questions regarding this policy, as well as the wireless device acquisition procedureshould be directed to the IS Help Desk at helpdesk@goodlifefitness.comReturn of laptops and cell phones when on leave[b ack to top]Associates taking a leave of absence of more than 3 month must return their laptop andcell phone to the IS dept prior to their leave of absence. The associates email address willremain active and functional for the period of their leave.Under special circumstances the manager may request that the associate keep theirlaptop and cell phone and must notify IS of this arrangement.Travel Policy and Procedure[ back to top]To ensure the lowest possible costs are spent on all travel bookings including air, train, carrental or hotel, transportation arrangements must be booked through the TravelCoordinator, Erin Maxim. All requests must be received by email two or more weeks priorto the departure date. You can expect to receive your completed travel itinerary no laterthen one week prior to your departure, based on volume of travel requests._______________________________________________________________________________The following guidelines must be followed when requesting traveling:Flights and Rail TravelTo ensure the most economical fares are obtained, flight and rail requests should be sentto the Travel Coordinator as early as possible to take advantage of early bookingdiscounts. All flight and rail travel will be booked in economy class._______________________________________________________________________________Transportation from Residence to Airport/Train StationThe choice for the appropriate mode of transportation should be based on the lesser:• Mileage and airport/station parking fees;• Cost of taxi (return trip).The following should be considered:Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 83

• Ensure your full legal name, as stated on your driver’s license or passport is givenat the time of booking. You may be denied clearance to fly if short forms of anyother names appear on your ticket. (I.e. Ali instead of Allison). Please consider thisrule after getting married as well. If you change your name at work, but legallyyour name is different, please ensure that you are booking to match your legalidentification.• Ensure your cell phone number is clearly listed on the booking request. Thisnumber is included on your ticket so that the airline/rail carrier may contact you incase of delay or cancellation.• WestJet Airlines is the primary airline carrier to GoodLife Fitness. As such, flightswill be booked on WestJet, based on price and availability, prior to any othercarrier.• Advanced flight selection is welcome, however, when savings is available on airand rail travel within 90 minutes of the selected departure time, the cost savingschedule is favored.• All e-tickets must be reviewed immediately upon receiving confirmation. Anydiscrepancies are to be reported before the end of the same business day as mostchanges can be made within the same day of booking at no cost!• When travelling outside of Canada, please ensure you have notified the IS HelpDesk. By letting the IS Help Desk (helpdeskIT@goodlifefitness.com) know, theycan make the appropriate changes to your mobility service so GoodLife will notincur high roaming charges or high long distance rates. When you book out ofcountry travel with the Travel Coordinator, the IS Help Desk will automatically benotified on your behalf._______________________________________________________________________________Car RentalReservationA car rental should only be contemplated if the use of taxis will not result in cost savings.Car rental reservations will be fulfilled by Enterprise Rentals where applicable.InsuranceInsurance is included in all Enterprise rentals. This feature is included in our rental rate,however is often not displayed on the Enterprise internal system. Because of this,Enterprise agents will often offer you insurance as well. This insurance is to be declined.*This rule does NOT apply if you have a rental vehicle with any other agency.Vehicular AccidentsShould a vehicular accident happen, the following steps must occur:• Ensure all passengers in your vehicle are unharmed as well as those in any othervehicles involved are unharmed.• If necessary, call 9-1-1 or the local police to report the incident.• Collect insurance and contact information from the driver of any other vehiclesinvolved.• Contact the Enterprise rental agency as listed on your contract to report theincident, and if the car is operable, return to the rental office.• Contact Erin Maxim to report the incident. An Enterprise loss prevention agent willbe assigned to your case._______________________________________________________________________________Refueling and Toll RoutesTo avoid excessive refueling charges imposed by car rental agencies, cars must berefueled prior to returning. Toll routes are to be avoided whenever possible unless you arein possession of a transponder. Otherwise, the rental agency will charge us for anycharges incurred, and often, this can result in a service charge._______________________________________________________________________________AccommodationReservationsConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 84

To ensure the most economical accommodations are obtained, requests should be sent tothe Travel Coordinator as early as possible to take advantage of early booking discounts.Room accommodations will be shared, where possible. Rooms will be reserved at selecthotels only, in which negotiated rates and direct billing have been arranged. Room, taxand parking charges will be billed to GoodLife Fitness on your behalf.CancellationAll reservations are guaranteed for late arrival unless otherwise requested. In most cases,room reservations must be cancelled before 72 hours prior to the date of arrival to avoidcharge for unused accommodation. Failure to cancel a guaranteed hotel reservation priorto this time will result in a charge for the unused accommodation._______________________________________________________________________________Important InformationCancellations happen! Please be sure to contact your Travel Coordinator to make anychanges as soon as you become aware of them. For emergencies only, should yourequire changes or cancellations after hours or on weekends, please contact your TravelCoordinator. If you do not receive a response within two hours of your change request,please use your best means to contact your carrier to report your absence from theflight/train/hotel.Please report any changes made to the Travel Coordinator via email so that follow up canbe made, and credit information can be collected. Please note that any loss of funds dueto late cancellations (I.e. change fees) will be charged to your department. Also, acancellation charge may apply to associates who are cancelling associates out of BaseCamp due to the ever rising cost per head. Generally, this is a $100 cancellation feecharged to the associates club when they have not been cancelled 48 hours prior totraining.Travel and Expense Reimbursement[back to top]All out of pocket expenses incurred by associates for business purposes must bedocumented on an Expense Report. Completed and approved expense reports must besubmitted to Accounts Payable on a timely basis for reimbursement._______________________________________________________________________________Cellular Phone ChargesAccounting will send a copy of mobile phone bills to each individual associate. Associatesare to review all bills for accuracy to include, total minutes, time of calls, location of call,etc.Associates are to document the business purpose of any unusually long calls or late calls,etc. to minimize any questions a Supervisor may have about the usage of a cell phone.Once reviewed the bill should be signed and forwarded to the immediate Supervisor._________________________________________________________________________Expense ReportsExpense Reports must be submitted at a minimum on a monthly basis. Expenses incurredmust be supported with original receipts – credit card statements are not acceptable._________________________________________________________________________Meals: Meal expenses incurred should be reasonable, and must relate to businessactivities. Meals are reimbursed up to 30 dollars per day with no alcohol allowed. Mealexpenses are only allowed when there is an overnight stay. Meals paid by otherdepartments or served during a flight must be taken into consideration.Two night stay would include:Day One - Dinner;Day Two - Breakfast, Lunch, Dinner;Day Three - BreakfastGroup ExpensesConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 85

The most senior level position in attendance must pay and claim for all group mealexpenses. Associates are required to act within their scope of authority, and not to shiftresponsibilities to a subordinate level. All expenses must be approved at the appropriatelevels.Miscellaneous ChargesTo offset the inconvenience of travel away from home, certain miscellaneous expensesare acceptable provided they are reasonable in nature and cost, for example:1. Laundry: if away from home for more than 7 consecutive days;2. Telephone: 1 personal long distance call for every day away from home as long asthe length of the call is reasonable3. Tips: {waiter-10%-15%}, {taxi-10%-15%}, {bell boy/valet/chambermaid-$2.00 perday maximum}________________________________________________________________________Disallowable ChargesExpenditures normally requiring the completion of an approved purchase order must notbe incurred by an associate and reported on an expense report.The following expenses will not be reimbursed and if claimed on an expense report, theamount will automatically be deducted:1. Luncheons and/or entertainment for staff2. Meeting snacks3. Gift Certificates and/or Gift Cards, Lottery Tickets4. Gifts (e.g. for weddings, birthdays, staff departures, baby showers, Christmas, etc.)5. Staff incentives initiated at the club level6. Car operating expenses (exception is company vehicles)7. Speeding or parking tickets8. Parking at your home/office is personal and will not be refunded, unless previouslyauthorized by the Administration ManagerAllowable ChargesThe following expenditures are allowed but must be approved a supervisor.1. Birthday Cards2. Sympathy Flowers, $50 max3. Meeting prizes, $10 max per meeting_________________________________________________________________________Mileage ReimbursementAll car expenses will be reimbursed on a per kilometre basis.Associates, receiving car allowance will be reimbursed at a per kilometre rate set to coverthe cost of gas. The rate at time of issuance of this policy is 15 cents per kilometre(except in province of Quebec the rate is 16 cents per kilometre). The odometer readingmust be reported on the expense report.Associates not receiving car allowance but who are required to travel on companybusiness will be reimbursed at a per kilometre rate. This rate is set to cover reasonableoperating costs. The rate at time of issuance of this policy is 33 cents per kilometre(except in province of Quebec the rate is 34 cents per kilometre).Rates will be reviewed and updated periodically. Mileage claimed should be based on thelesser of the distance from home or office. Travel to and from your home base/office ispersonal and should not be claimed. Car pools should be used whenever possible toattend club openings, conferences, and meetings. The only other allowable car expensereimbursement is for parking (other than home/office) and bridge or highway tolls.Multi Club Travel MileageConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 86

Mileage cannot be claimed for travel to or from home to the “home” club but it can beclaimed for travel to other clubs from the home club. If the return trip home is from anotherclub other than the home club then mileage should be subtracted from the distancebetween the home club and home. The same applies for the mileage to travel directly to aclub other than the “home club” in the morning. The easiest way to do this is to track totalbusiness mileage for the day and then from this subtract whatever the roundtrip mileagewould be to and from home to the “home club”.It is the responsibility of the associate to secure adequate automobile insurance and thisshould be provided to the employer if requested._______________________________________________________________________________Company Vehicle ExpensesAssociates with company vehicles will be reimbursed for 100 percent of expenses relatedto operation of the vehicle. This includes gas, maintenance, registration and insurance.These should be reported in the Other Expense section of the expense report worksheet.Kilometre usage must be recorded on the report. An associate must claim a taxablebenefit for the personal use of the company vehicle._________________________________________________________________________Internet Charges100 percent reimbursement of internet costs will be provided to associates that areworking from a home office. A “Home Office” is only applicable if an associate does nothave a home club or designated office space. Divisional Mangers and/or DepartmentHeads will be determining the associates who qualify for this reimbursement. Anyone thathas office space outside of their home would not be eligible for reimbursement.Personal Calls[back to top]GoodLife associates may use company telephones solely for conducting GoodLifebusiness or other authorized uses as defined in this policy._________________________________________________________________________Guidelines for Other Authorized UsesOther authorized uses of GoodLife telephones are calls that:1. Do not adversely affect GoodLife or the associate’s performance of his/her official duties2. Are of a reasonable duration and frequency, in accordance with the examples listedunder "Examples of Other Authorized Uses" in this section3. Could not have reasonably been made during non-work hours, in accordance with theexamples listed under "Examples of Other Authorized Uses" in this section_________________________________________________________________________Examples of Other Authorized UsesNote: In the context of this policy, "brief" means the time it takes to accomplish thepurpose of the call.1. An associate is required to work overtime without advance notice and calls within thelocal commuting area (the area from which the associate regularly commutes) to advisehis or her family of the change in schedule or to make alternate transportation, child orelder care arrangements2. An associate makes brief calls to locations within the local commuting area to speak toa spouse, a minor child, an elderly parent (or those responsible for them, for example,school or day care center, and nursing home)3. The associate makes brief calls within the local commuting area that can be reachedonly during working hours, such as a local government agency or a physician4. An associate makes brief calls to locations within the local commuting area to arrangefor emergency repairs to his or her residence or automobile5. While on official business, the associate makes a call of three (3) minutes or less toannounce safe arrival, delay, or a change in plansIncident ReportingConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 87

[back to top]The purpose of this policy is to enforce the documenting of incidents within our clubs andto reduce GoodLife’s liability by identifying areas of risk. Incident Reports must becompleted for any accident, injury or theft on GoodLife property.Incident ReportsAll incidents (facility damage, flooding, theft, member injury) must be documented on anIncident Report. The first staff member(s) on the scene is/are responsible for ensuring thatany club members involved are taken care of and for filling out an Incident Report to besent to Lisle Maloney, Brad Lindsay and Rob Duncan to ensure that the General Manageris informed of the details of the situation._________________________________________________________________________EmergenciesOne staff member must take charge of the situation and direct others as needed (get firstaid kit, call emergency contact, call ambulance/taxi, etc).The incident is to be assessed to see if any members were injured or the extent of theinjury. Do not admit fault at any time. Be Caring, Helpful and Responsive.If members were involved:1. Determine if medical attention is needed. If unsure, do not move the member andcall an ambulance. If they intend to seek medical attention immediately, but do notwant/need an ambulance, arrange for transportation for them (taxi) and pay for thisfrom petty cash. Use common sense in this case; arrange to have their car drivenhome for them if they are unable to. Make this as comfortable as possible for themember.2. Follow up with the member within twenty-four (24) hours to see if they are alright,have they seen or will they be seeing a doctor, are they able to continue workingout at the club, or would putting their membership on hold be appropriate.3. Complete the Incident Report only after members have been tended to. The reportshould not be taken out in front of members in order to ensure that GoodLife’sfocus is completely on the member.Obtain statements from all witnesses of the event with names and phone numbers forpossible follow up._________________________________________________________________________Send the Incident Report to Home OfficeA staff member involved in the incident must complete the GoodLife Incident Report andemail it to Lisle Maloney, Brad Lindsay and Rob Duncan (Incident Report Forms areavailable on Public Folders.)Associate Discount on Tanning and Pro Shop[back to top]TanningStand up or lay down tanning is free. However, members do come first and at somelocations, a max $2 charge is applicable to help off set the costs of bulb usage and wearand tear on the units.Pro ShopAssociates receive a SET SPECIFIC discount on all Pro Shop clothing for their personaluse. Discount Listings are available in public folders in the CSR section. Discounts do notapply to “garments of the month” (GOM’s).Associate and Family Memberships[back to top]Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 88

GoodLife values and appreciates its associates, and encourages associates to enjoy asuccessful, long-term, enriching career. GoodLife rewards associates for their tenure, withthe “Length of Service Recognition program” where they receive a gift recognizing theirlength of service, along with a gift membership vouchers.The following is an updated policy and procedure for redeeming associate complimentary,Family Membership, and $199 Discounted Memberships.Complimentary towel service is a continuing benefit of the complimentary associatemembership, but is no longer extended to Complimentary Family Memberships or$199 Discounted Memberships.Any memberships already put through as Platinum or “With Towels” will be honored untilthey expire, but going forward, if renewed, must be “Fitness Plus only”, unless the upgradeis paid.Associate’s complimentary or discounted memberships received through theLength of Service Program apply to Fitness Plus clubs unless otherwise indicated.Please read through the instructions below, and ensure your understand completelybefore processing any complimentary or discounted memberships. Follow theappropriate steps to ensure those receiving these gift vouchers are able to start workingon their fitness goals right away._________________________________________________________________________Instructions on Redeeming Your Complimentary and Discounted MembershipYour Complimentary MembershipUpon commencing employment with GoodLife, all full and part-time associates includingGroup Exercise Instructors will receive a complimentary 3 month term Fitness Plusmembership including towel service. Please read through the following policy carefully:1. The associate membership form (located on Public Folders in the “PeopleDepartment” folder) must be filled out along with a regular membership contract.The contract should have 0’s written in for the dollar amount and no paymentshould be collected.2. After the associate’s 3 months, the associate’s manager must fill out a MembershipExtension letter (also located on Public Folders in the “People Department” folder)This extension approval is submitted to the associate who is processing themembership extension and must be stapled to a change form that is used toextend the membership to a 9 month term.3. Associates who work at a Platinum location will receive a Platinum associatemembership. Any associate who does not work at a Platinum location will need topay the upgrade fee at a Platinum location if they wish to use it.4. The associate term membership includes towel service. This membership is validas long as the associate remains employed with GoodLife.5. Associates will be given a pink associate membership card. The membershipagreement must be kept in the associates’ personnel folder.6. This offer is subject to change at GoodLife’s discretion at any time._________________________________________________________________________Complimentary Family Membership after 3 Months of ServiceAfter 3 months with GoodLife, Associates can extend a complimentary 9 month termFitness Plus membership for someone in their Immediate Family. Please read through thefollowing policy carefully:Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 89

1. Fitness Plus members have access to all clubs except those that are identified asPlatinum clubs found on the ‘Pricing by Regions’ form on Public Folders. Platinumclubs have additional amenities and services and Fitness Plus members can workout at a Platinum club by upgrading their membership at the Platinum location (aPre-Authorized Payment will be applicable) or paying the required guest fee pervisit.Associates that work in a Platinum club will get a Platinum Family membership ifthey will be working out in the club that the associate works at. The familymembership is a one year term and after the one year the associate can renew thefree membership for their family member or chose to extend this membership toanother family member. The free family membership must be kept with theassociate’s membership in their blue folder.2. This membership does not include towel service. To receive towel service, thefamily member must pay the pre-authorized payment amount indicated at theirhome club, for an upgrade to towel service.3. When an Associate leaves the company and they have given a free membership toa family member, it will be cancelled immediately. If the family member wishes tocontinue their membership with GoodLife, they must purchase a regularmembership.4. Associates who are currently between 3 and 12 months of service will receive acomplimentary term membership for a spouse or immediate family member; thelength of the term membership must reflect the number of months between theircurrent length of service and their 1 year anniversary with GoodLife. For example ifan associate currently has 6 months of service they will receive a 6 month termmembership.5. This offer is subject to change at GoodLife’s discretion at any time._______________________________________________________________________________Complimentary Family Membership after 3 months of Service –Group Ex InstructorsAfter 3 months of service, Group Ex Instructors will receive a complimentary 9 month termFitness Plus membership (Platinum membership in Platinum clubs) for someone in theirImmediate Family at the discretion of the Group EX Regional Manager as part of theirperformance review. The membership is valid as long as the Group Ex Instructor remainsemployed with GoodLife. The additional stipulations outlined above, also apply._______________________________________________________________________________2 Associate Discounted 1 Year Term MembershipsAfter 1 year of service and each year thereafter based on the start date and for theduration of employment with GoodLife, associates will receive 2 discounted 1 year termmemberships priced at $199.1. All $199 memberships, including those received by Platinum Club associates, areFitness plus only. Any recipients of the $199 membership can work out at aPlatinum club by upgrading their membership at the Platinum location (a Pre-Authorized Payment will be applicable) or paying the required guest fee per visit.2. These memberships will expire 1 year after they are redeemed and can still beredeemed and used for 1 year even if the associate leaves GoodLife.3. All current associates with more than 1 year of service will receive their 2discounted membership certificates this year in the month that their start date fallsin. For example, if an associate started with GoodLife in the month of June, theywill receive their 2 discounted membership certificates in the month of June aswell.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 90

4. Disciplinary action will be taken if the complimentary or discounted 1 year termmemberships are misused in any way.5. This offer is subject to change at GoodLife’s discretion at any time.*A relative includes the following:8. Spouse, same-sex or domestic partner9. A parent, step-parent, foster parent or legal guardian10. A child, step-child or foster child11. A grandparent, step-grandparent, grandchild or step-grandchild12. Current mother-in-law, father-in-law, brother-in-law, sister-in-law13. The spouse or same-sex partner of a child14. A brother/sister, step brother/sister or half brother/sisterRequests made that do not fall under the guidelines listed above will be considered on anindividual basis by the Associate’s Divisional Manager/Department Head._______________________________________________________________________________Ending EmploymentWhen an Associate leaves GoodLife on good terms (i.e. provides an acceptable length ofnotice and work performance has met expectations), the following will apply:• Less than 5 years of employment - discounted corporate PAP rate (membershipmust be purchased within 30 days of their last day worked for the discount toapply; immediate family members do not qualify for this rate)• 5 -10 years of employment - 1 year free membership• 10+ years of employment - 5 year free membership (this is the maximum amountthat will be granted)Former Associate memberships must be initiated at least 30 days after the last day ofwork. Associates who are dismissed for any reason, for cause or without cause, are noteligible for a free membership._________________________________________________________________________For Associates who started employment with GoodLife prior to January 2005, thefollowing policy will be honoured:• For every year worked, full-time Associates will receive a 1 year free membership,up to a maximum of 10 years and must work 1 full year to qualify.• For every year worked, part-time Associates will receive a 6 month freemembership, up to a maximum of 5 years and must work 1 full year to qualify• If an Associate is dismissed for any reason, for cause or without cause, they arenot eligible for a free membership.Members becoming AssociatesWhen a current member becomes employed by GoodLife, their membership will beconverted to a free Associate membership. Upon termination of employment, their originalmembership will be reactivated at the same rate they paid prior to working for GoodLife.New banking information must be provided and a change form signed agreeing toreactivate their membership.Associate use of Child Minding[back to top]Associates will now be responsible for paying for child minding whenever it is used.Associates will receive a discounted associate rate for their children as per the following:1. $2.00 for 2 hours for the 1st child and $1.00 for each additional child2. Associates who use the child minding more frequently will have the option ofpaying bi-weekly for their children at $3.00 less the member bi-weekly rateConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 91

_______________________________________________________________________________Group Exercise InstructorsGroup Exercise Instructors will receive child minding free of charge while they are teachingtheir scheduled classes or if they are required to sub a class. For any other usage timesother than during a scheduled class or subbed class the associate usage policy above willbe followed.________________________________________________________________________Volunteers and Child Minding AssociatesVolunteers and child minding associates will receive child minding free of charge whilethey are working at the General Managers discretion._______________________________________________________________________________For working out onlyChild minding is not to be used for children of associates while the associate is workingtheir scheduled shift. Associates can pay for and use the services only when they areworking out._________________________________________________________________________Children must follow rulesIf your children are abusive or don’t follow the child minding rules they will not be permittedto use the facility.Associate Sponsorship Requests[back to top]If you are requesting sponsorship for yourself i.e. you are competing in a race and youwould like GoodLife to sponsor you, please fill out the Associate Sponsorship Requestsform and send to policies@goodlifefitness.com. If you are requesting a group sponsorshipi.e. you are competing on a soccer team, and you would like GoodLife to sponsor youplease fill out the Request for Promotional Support/Sponsorship form on the GoodLifewebsite. http://www.goodlifefitness.com/sponsorships.aspx_______________________________________________________________________________Meeting sponsorship criteria does not in itself guarantee sponsorship approval.Requirements are subject to change based on business needs and high demand forsponsorship funds. These changes can influence the selection process._______________________________________________________________________________Individual Sponsorship RequestsAssociates requesting sponsorship must fill out the ‘Associate Sponsorship Request’ formin the Policy and Procedure Handbook on SharePoint, 8 weeks prior to the event date. Allrequests are subject to approval and require 4 weeks to process. Please email thecompleted form to policies@goodlifefitness.com. The People Department will reviewassociate sponsorship requests on a monthly basis and contact the associate no later than4 weeks after with the final decision.Group Sponsorship RequestsAssociates requesting group sponsorship must fill out the Request for PromotionalSupport / Sponsorship form http://www.goodlifefitness.com/sponsorships.aspx on theGoodLife website, 8 weeks prior to the event date. All requests are subject to approvaland require 4 weeks to process. The Marketing Department will review group sponsorshiprequests on a monthly basis and contact the associate no later than 4 weeks after with thefinal decision.Reporting Suspected child abuse[back to top]All GoodLife associates share a responsibility to protect children from harm; aresponsibility that extends to those situations where children suffer abuse and neglect intheir own homes._______________________________________________________________________________Child Minding AssociatesConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 92

If a child minding associate has reason to believe that a child may be a victim of abuse orneglect, it is very important that the associate speak to their manager and report thesuspected child abuse immediately to a children’s aid society.Members of the public, who work with children, must promptly report any suspicions that achild is or may be in need of protection. A child in need of protection includes physical,sexual and emotional abuse, neglect, and risk of harm.Reasonable GroundsIt is not necessary for an associate to be certain a child is or may be in need of protectionto make a report to a children's aid society. “Reasonable grounds" refers to the informationthat an average person, exercising normal and honest judgment, would need in order tomake a decision to report._______________________________________________________________________________More than 1 call can be madeEven if an associate has called the children's aid society about a particular child, theassociate must call again and make a further report if there are additional reasonablegrounds to suspect that the child is or may be in need of protection._______________________________________________________________________________The call can’t be made by someone else on your behalfThe associate who believes a child may be a victim of abuse must report directly to achildren’s aid society and not rely on anyone else to report on their behalf._______________________________________________________________________________Children’s Aid InvestigationThe children’s aid society will investigate the information the associate provides. Children’said society workers have the responsibility and the authority to investigate allegations andto protect children. The workers may, as part of the investigation and plan to protect achild, involve the police and other community agencies. All children's aid societies provideemergency service 24 hours a day, seven days a week._______________________________________________________________________________To contact the nearest Children’s Aid Society in your location please visithttp://www.oacas.org/childwelfare/locate.htm or call the operator to connect you.Associate Theft[back to top]GoodLife encourages associates to secure personal belongings in a locker while at work.It is in the associate’s best interest to leave valuables at home. In the event personalbelongings go missing, GoodLife accepts no responsibility, or liability, whatsoever for anypersonal items belonging to an associate that are lost, stolen, damaged or destroyed onGoodLife property.It is the responsibility of managers to communicate to their staff to lock up personalbelongings during their shift and to leave valuables at home.Bag check protocolIf an associate reports that their personal items that were not locked up have been stolen,or if GoodLife property goes missing, the following will apply:• The manager should ask the suspected associate(s) for his/her permission to lookin their purse/bag/jacket pockets/locker, etc.• If a suspected associate refuses to submit to a search voluntarily, the managershould advise the associate that the police are being contacted and ask theassociate to wait for the police to arrive; and• The manager should never detain any associate if he/she wants to leave beforethe police arrive; however, if an associate decides to leave, the manager shouldinform the associate that they will need to consider the associates decision to leaveConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 93

the premises in its employment-related decisions (e.g. if the associate wasinnocent, why would he/she not be prepared to wait for the police to arrive and/orotherwise agree to the search voluntarily).Corresponding Wage Increases and Position Status Changes tothe Start of a Pay Period[back to top]When managers are switching associates from hourly to salary or from salary to hourly, itmust be done at the start of a pay period instead of part way through a pay period. (seepay period chart below)________________________________________________________________________________________Changing the Hourly/Salary statusIt is very important when an employee changes from hourly to salary or vice versa, that itcorresponds with the start of a pay period!________________________________________________________________________________________Pay Period ChartManagers are responsible for using the Pay Period Chart below to ensure that whenswitching an associate from hourly to salary or vice versa that it occurs at the start of a payperiod instead of part way through a pay period. The left hand column shows the payperiods and the right hand column shows the deposit date.Managers are also responsible for using the Pay Period Chart in order to determine whenan associate should be given a wage increase. The left hand column shows the payperiods and the right hand column shows the deposit date._________________________________________________________________________Switching from Hourly to SalaryWhen associates switch from an hourly position to a salaried position, their salary willbegin at the start of the pay period.For example:If the current pay period was Jan 1st – 14th, paid on Jan 30th, and an associate wasswitching from hourly to salary on Monday January 12th, they would be paid their salaryfor the entire pay period Jan 1st – 14th. This associates new salaried position would begiven an ‘effective date’ of Jan 1st (the first day of the pay period).________________________________________________________________________________________Switching from Salary to HourlyThe same applies when associates switch from a salaried position to an hourly position;their salary would remain until the end of the pay period.For example:If the current pay period was Jan 1st – 14th, paid on Jan 30th, and an associate switchedfrom a salaried position to an hourly position on Monday January 12th, they would be paidtheir salary for the entire pay period Jan 1st – 14 th . The associates new hourly positionwould be given an ‘effective date’ of Jan 15 th (the first day of the following pay period).Wage ChangesIt is very important that wage increases correspond with the start of a pay period! (see payperiod chart)Managers are responsible to ensure that when giving an associate a wage increase that itoccurs at the start of a pay period instead of part way through a pay period.________________________________________________________________________________________Why the wage increase should begin at the start of a pay periodEnsuring it begins at the start of a pay period makes it easier for the manager tocommunicate to the associate exactly when the increase is effective as well as when theassociate will see the increase on their paycheck. It also allows payroll to calculateappropriately thus ensuring the associate gets their correct increase.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 94

________________________________________________________________________________________Pay Period ChartManagers are responsible for using the Pay Period Chart in order to determine when anassociate should be given a wage increase. The left hand column shows the pay periodsand the right hand column shows the deposit date.Pay PeriodsEffective DateFirst Day of the Pay PeriodPay Dates1st Pay Date to Show IncreaseDec. 4 to Dec. 17, 2008 January 2nd, 2009Dec 18th - Dec.31st, 2008 January 16th, 2009Jan 1st - Jan 14th, 2009 January 30th, 2009Jan 15th - Jan 28th, 2009 February 13th, 2009Jan 29th - February 11th,2009 February 27th, 2009February 12th - February 25th,2009 March 13th, 2009February 26th - March 11th,2009 March 27th, 2009March 12th - March 25th,2009 April 10th, 2009March 26th - April 8th,2009 April 24th, 2009April 9th - April 22nd,2009 May 8th, 2009April 23rd - May 6th,2009 May 22nd, 2009May 7th - May 20th,2009 June 5th , 2009May 21st-June 3rd, 2009 June 19th, 2009June 4th - June 17th,2009 July 3rd, 2009June 18th - July 1st, 2009 July 17th, 2009July 2nd - July 15th,2009 July 30th, 2009July 16th - July 29th,2009 August 14th, 2009July 30th - Aug 12th,2009 August 28th, 2009Aug 13th - Aug 26th,2009 September 11th, 2009Aug 27th - Sept 9th,2009 September 25th, 2009Sept 10th - Sept 23rd,2009 October 9th, 2009Sept 24th - Oct 7th,2009 October 23rd, 2009Oct 8th - Oct 21st, 2009 November 6th, 2009Oct 22nd - November 4th,2009 November 20th, 2009Nov 5th - Nov 18th, 2009 December 4th, 2009Nov 19th - Dec 2nd,2009 December 18th, 2009Dec 3rd - Dec 16th,2009 December 31st, 2009Dec 17th - Dec 30th,2009 January 15th, 2010Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 95

Forms[back to top]Pregnancy and Parental Leave FormIf you have an associate on your team who is taking a pregnancy or parental leave please completethe following form and email to cthibodeau@goodlifefitness.com. A copy of this form must beplaced in the associates personnel file.Pregnancy/Parental Leave Checklist for ManagersCall Chenelle Thibodeau in the People Department at 289-314-5573 to review the1process and discuss the associates vacation entitlement2 Meet with the associate to discuss the following:Present the associate with the Baby Starter Kit from the Employee Assistance Programa) by calling 877-207-8833 or order online at www.lifeworks.com User ID: goodlifePassword: wellnessGive the associate the ‘Pregnancy and Parental Leave Policy’, and the ‘Pregnancy andParental Leave Questions and Answers’ documents found in the Policy and Procedureb)Handbook on SharePoint - internally at the club at http://glfc7/default.aspx or externallyat https://sharepoint.goodlifefitness.com/default.aspxRemind the associate they must give you written notice 2 weeks before the leave begins.c)Place this written notice in the associate’s file.Associates wishing to continue health benefits while on Pregnancy Leave must provided)post dates cheques and contact payroll.e) Discuss the policy concerning vacation and Pregnancy/Parental LeavesExplain to the associate that they don’t receive wages from GoodLife for the duration oftheir leave and that they must apply for Maternity Benefits through Employmentf)Insurance.http://www100.hrdc-drhc.gc.ca/ae-ei/dem-app/english/home2.htmlNotify Payroll of the start and end dates of the leave because the associate needs their3Record of Employment to apply for Maternity benefits through Employment Insurance.Call the associate at home every 2 months during the leave to see how they are doing4and update them on any changes or news in the dept.5 Call the associate 1 month prior to the end of their leave to discuss their return to work.Associate Name:Associate Payroll ID:Manager:Position and Full or Part timeLeave Requested (Pregnancy and/or Parental Leave):Duration of Leave: From: To:Annual Vacation Entitlement:# of vacation days earned last year to be taken prior to the Pregnancy Leave:For SALARY associates# of paid vacation days earned last year to be set aside to take upon return from leave:Comments:Manager SignatureEmployee SignatureDateDateConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 96

VacationAn associate is still an employee of GoodLife even while one a Pregnancy/Parental Leaveand continues to accrue vacation time. Hourly associates will not receive vacation paywhile they are on leave because they are not earning wages from GoodLife during thistime although they continue to accumulate their vacation time.Full time salary associates will have some paid vacation days the year after they returnand some will be unpaid because vacation pay is not earned when wages are notreceived from GoodLife for the duration of the leave.For example: if a salaried associate with 3 weeks of vacation takes a Pregnancy/Parentalleave from April 30 th 2008 to April 30 th 2009 the following chart would apply:YearVacation TimeEarned2007 15 days with payTime period you can take earnedvacationJanuary 2008-December 20082008thWorked from Jan to April 305 days with pay January 2009-December 20092008On leave from May 1 st stto Dec 3110 days without pay January 2009-December 20092009thOn leave from Jan to April 305 days without pay January 2010-December 20102009Worked from May 1 st stto Dec 3110 days with pay January 2010-December 2010An option for the salary associate in the example above would be to set aside half of theirvacation earned in 2007 to take when they return from leave instead of taking thecomplete 15 days from January to April 30 th 2008 before the leave begins. The chartbelow describes this option:Year Vacation Time Earned Time period you can takeearned vacation15 days with payTake 8 days before April 30 th 2008January 2008-December2007and 7 days in 2009 instead of2008taking the 15 days before April 30 th20082008Worked from Jan to April 30 th 5 days with pay January 2009-December20092008On leave from May 1 st 10 days without pay + 7 days withto Dec31 st pay earned in 20072009On leave from Jan to April30 th 5 days without pay2009Worked from May 1 st to Dec31 st 10 days with payFor People Dept Use OnlyJanuary 2009-December2009January 2010-December2010January 2010-December2010Year Vacation Time Earned Time period you can take earnedvacation200_ __ days with pay January 200_-December 200_200_ Worked from ______to ______ __ days with pay January 200_-December 200_200_ On leave from _______to ______ __ days without pay January 200_-December 200_200_ On leave from ______ to ______ __ days without pay January 20__-December 20__200_ Worked from ______ to _______ __ days with pay January 20__-December 20__Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 97

[back to top]Associate Sponsorship Request FormAssociate requests are assessed on the basis of their nature and the opportunities theypresent for positive exposure and promotion of the GoodLife brand.All requests are subject to approval and require 4 weeks to process. Requests must besubmitted by filling out this form and sending it to policies@goodlifefitness.comApplication for SponsorshipAssociate’s Name:Address:Phone Number:Email Address:Please provide a detaileddescription of the event:Date of the event:Time:Location:Who is the target audience?What is the projectedattendance?Please provide a list of othercorporate sponsors and theirlevel of support:How will GoodLife berecognized for its support?What is the amount and/orlevel of support requestedfrom GoodLife?Please provide additionalinformation that will assist usin our evaluation.Please note that meeting these criteria does not in itself guarantee sponsorship approval.Requirements are subject to change based on business needs and high demand forsponsorship funds. These changes can influence the selection process.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 98

[back to top]Request for Relocation ReimbursementHiring Managers requesting a relocation reimbursement for an initial recruitment orcompany initiated transfer or promotion must fill out this form and send topolicies@goodlifefitness.com. The People Dept will contact the hiring manager with thefinal decision.Hiring Manager Name:Associate Name:Department:Is this a relocation request for a company initiated transfer or promotion?Is this a relocation request for an initial recruitment?Please indicate the distance in kilometers the associate is moving from their current city:Please indicate the amount being requested?Hiring Manager SignatureComments:DateApprovedNot ApprovedComments:ApprovalApproval Signature:Date:Upon approval of the relocation reimbursement the associate must acknowledge and signthe form below.Associate AcknowledgementQualificationTo qualify for the Relocation Reimbursement, associates must move the contents of their home within 3months of commencing employment with GoodLife and all original receipts are required for all expenses beingclaimed.TerminationIf an associate resigns or is terminated within 2 years of the incurred relocation expense, they are required topay back the full amount that was originally reimbursed by GoodLife. In addition, if the associate does not stayin the same role (i.e. moves into a position of less responsibility) given upon initial recruitment or thetransfer/promotion initiated by GoodLife for 2 years, they must also pay back the full amount that was originallyreimbursed by GoodLife.Associate Signature:Date:Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 99

[back to top]Associate Referral FormPlease return this form via fax or email when you refer an individual hire a newassociate. Fax to 519.661.0544 or email to sbates@goodlifefitness.com. Uponverification, Sacha Bates will forward the Associate Referral Form to the appropriaterecruiter.Date Submitted:I would like to recommend the following individual for employment at GoodLife:Name:Phone Number:Position Referred for:Applicable Club Location(s) or Region:Brief Description of Qualifications:Recommended By:Name:Mailing Address:Club Location and Club Number:Member or Employee:Phone Number:E-mail Address:Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 100

[back to top]New Associate Referral Reward FormPlease return this form via fax when you hire a new associate. Fax to519.661.0544. Upon verification, Sacha Bates will forward the referral rewardinformation to the GoodLife Payroll department. Hiring Manager must sign NewAssociate Referral Reward Form.Referred Associate Name:Position:Status - Full or Part-Time:(Definedbelow)Club:Associate Start Date:Today’s Date:Reward To Be Issued To (Name &Club):Associate - Payroll ID (Not CARE ID):Member – Mailing AddressReward Amount (To be paid after 3mos.):Reward Amount (To be paid after 6mos.):Hiring Manager Authorization:Defined: Full-time or Part-time: A full-time associate is defined as working a minimum of 32hours/week except for Personal Trainers. A full-time Personal Trainer is defined as working a minimum of 24hours/week.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 101

[back to top]Foreign Worker Acknowledgement FormWhen the work permit of a foreign worker (non-Canadian citizen) expires, theiremployment with GoodLife will automatically end on that date. GoodLife will not takeresponsibility to assist the foreign worker in extending or renewing their work permit toextend their stay and continue working in Canada.For further details, please refer to the ‘Hiring Non-Canadian Citizens’ policy in the Policyand Procedure Handbook found on Public Folders or SharePoint.I _____________________________________ acknowledge that when my workInsert full name of foreign workerpermit expires on ________________________ that my employment withinsert work permit expiry dateGoodLife will end at that time.I understand that GoodLife will not assist me in renewing my work permit to extendmy stay in Canada._______________________________Signature of foreign worker____________________________Date_______________________________Manager Signature_______________________________DateManagers must photocopy the work permit and place it in the associates file as well asscan it and send it to cthibodeau@goodlifefitness.comConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 102

[back to top]Associate Membership Agreement FormAssociate Name: ______________________________________________________________Employee # (top left corner of pay stub): ____________________________________________Start Date: ___________________________________________________________________Position: ___________________________________________________________________________Associate MembershipAt the time of hire, new associates receive a complimentary 3 month term membership. Onceassociates successfully complete 3 months with GoodLife their membership will be extended to a 9month term.Associates must renew their membership annually and receive this benefit for as long as theyremain employed with GoodLife. Associates will be given a pink associate membership card andalong with the free membership will receive towel service. The membership agreement must bekept in the associates blue folder.Please respect the following guidelines when you are working out in a club:• For Group Ex classes, associates can join if there is room after all members have takentheir places• If a member is waiting for cardio or weight equipment please allow them to use the machineyou are occupying• Keep the closest parking spaces for members____________________________________________________________________________________Personal Training at Point of SaleAll associates receive 6 Personal Training at Point of Sale sessions upon commencement ofemployment with GoodLife. These sessions are a 1-time offer and must be completed within 6weeks from the date listed on this agreement. The General Manager or Fitness Manager will assigneach associate with a Personal Trainer who will follow the guidelines provided in the HealthSolution Guide and Health Solution Form to complete the 6 PT @ POSsessions.Any associates who wish to decline this 1-time offer must explain their reasons to their GeneralManager and Division Manager. Further details of this offer are provided in the New AssociateTraining Manual.Associates must fill out a ‘PT Agreement Form’ to begin the Personal Training sessions. HomeOffice associates must call the Fitness Manager at their home club to begin the Personal Trainingsessions.Start Date for 6 PT @ POS Sessions: _______________ Expiration Date: _________________________________________________________________________________________________Associate AcknowledgementAs an associate of GoodLife, I agree to respect and follow the terms and conditions outlined for thecomplimentary associate and family memberships.Associate Signature: ___________________________________________________________Date: ________________________________________________________________________Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 103

[back to top]E-mail and Internet Acknowledgement FormBy signing this document I, _____________________________________________________________(Associate Name)• Acknowledge receipt of GoodLife policy concerning e-mail and Internet useregarding permitted and prohibited uses of the e-mail and Internet systems.• Acknowledge and understand that violation of this policy may lead to disciplinarysanctions, up to and including termination for cause.• Confirm that I have read and understand the terms of this policy and agreeto abide by the terms of this policy.• Understand and agree that e-mails and attachments as well as my Internetuse are not private and confidential and may be monitored or searched byGoodLife any time it deems fit in its sole discretion.• Understand and agree that any e-mails, attachments and Internet use maybe archived by GoodLife and may be subject to disclosure or discovery incase of litigation or other legal processes.• Understand and agree that usage of e-mail and/or Internet systems will be limitedto company business.• Confirm that I will not download information from an Internet site unless solely forcompany purposes.• Confirm that I will respect GoodLife obligations with respect to software licensingand copyright.____________________________Associate signature______________________DateConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 104

[back to top]Leave of Absence Request FormI _____________________________________ request a Leave of Absence from GoodLifeInsert Full Namefrom ______________ to _____________ of __________. The purpose of the LeaveInsert start date Insert end date Insert YearAbsence is to __________________________________________________________________.Insert Reason for the Leave of AbsenceLeave of Absence Approved Yes _____ No_______________________________________Associate Signature__________________________________Manager SignatureConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 105

[back to top]Free Resources Available in CanadaKid's Help PhonePhone: 1.800.668.6868Child Abuse HotlinePhone: 1.800.387.KIDS (5437)Canadian Drug RehabPhone: 1-877-801-5475AlbertaBritish ColumbiaManitobaNew BrunswickNewfoundlandNova ScotiaOntarioQuebec24-Hour Toll-Free Crisis Help LineVeterans Affairs Canada Assistance ServicePhone: 1-800-268-7708http://www.vac-acc.gc.ca/clients/sub.cfm?source=forces/assiserveCanadian Centre on Substance AbuseWebsite directory:http://www.ccsa.ca/Pages/Splash.htmGambling Help LinePhone: 1-800-665-9676AIDS/Sexually Transmitted Diseases InfoPhone: 1-800-772-2437Assaulted Women’s HelplineAre you or someone you know involved in an abusive situation or are recovering frombeing emotionally or physically assaulted?Phone: 1-866-863-0511Website directory: www.womansabuseprevention.comEating Disorders Help & InformationPhone: 1-866-NEDIC-20 (1-866-633-4220)Website: www.nedic.caCentre for Suicide Preventionhttp://www.suicideinfo.ca/csp/go.aspx?tabid=40Distress Centres Ontariohttp://www.dcontario.org/centres.htmlMental Health Service InformationDo you or someone you know need help finding information about mental health servicesand support?Phone: 1-866-531-2600 (Ontario Only) E-mail: info_ref_servie_mhsio@connexontario.caWebsite Directory for all of Canada: http://www.cmha.ca/bins/site_page.asp?cid=284-294-297-1637&lang=1Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 106

National Credit Counselors of CanadaWebsite directory: www.nationalcreditcounselors.caDivorceProvides a wide range of support resources, articles and links.Website directory: www.womansdivorce.comFree Health InformationConfidential 24 hour telephone services you can call and get health advice or generalhealth info from a registered nurse.(Ontario) Phone: 1-866-797-0000 Website: http://www.health.gov.on.ca(Alberta) Phone: 1-866-408-5465 Website: www.healthlinkalberta.ca(British Columbia) Phone: 1-866-215-4700 Website: http://www.health.gov.bc.ca(Quebec) Phone: (514) 934-0354 Website:www.clscmetro.qc.ca/en/services/ambulatory/info-sante(New Brunswick) Phone: 1-800-244-8353 Website:http://www.gnb.ca/0217/Tele-Care-e.asp(Nova Scotia) Website directory: http://www.gov.ns.ca/heal/programs.htm(Newfoundland) Phone: 1-888-709-2929 Website: http://yourhealthline.ca(Manitoba) Phone: 1 888 315 9257 Website: http://www.gov.mb.caChildcare InformationResource to find babysitters and daycares in Canada that are near you.Website directory: www.onestopchildcare.comFind a Doctor or Naturopath in CanadaWebsite directory: http://intraspec.ca/find-a-doctor.phpPlanned ParenthoodWebsite directory: http://www.ppfc.ca/ppfc/contect.aspConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 107

[back to top]Dismissal EmailTo: Home Office AssociatesFrom: Associate’s ManagerSubject: Used: This email is to be used when an Associate has been either terminated or hasresigned.Hello GoodLife Associates,This email is to inform you that effective on , , , is no longer anAssociate of GoodLife Fitness.Please direct any inquiries regarding employment to me.I have appreciated the work that has done for the department. On behalf ofGoodLife, we wish all the best in future career endeavours.Sincerely,Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 108

CARE Instructions to Redeem Associate and Family Memberships[back to top]Associate Discounted 1 Year Term Membership for ManitobaPaperwork:Fill out a ‘Membership Agreement’, and attach the Associate Discounted 1 Year TermMembership certificate to the Membership Agreement. The membership must have anexpiry date of 1 year; it cannot be an open ended membership as they must provide anew certificate upon renewal to get this great rate next year. If they don’t get anothercertificate from the associate the next year then they must renew at our current rates. Ifthe certificate is not attached then the sale will be made incomplete until this certificate isprovided. Two units will be assigned on this sale.To Enter in CARE:1. Log into CARE as yourself.2. Click on Daily Sales Journal from the Main menu.3. Click on today’s date from the Calendar.4. C lick on Record a New Agreement from Agreement Menu.5. Enter the following information for the associate.Transaction DetailsActivity TypeSelect ‘New Member’Change Form #Skip – not applicablePT Contract #Skip - not applicableSold BySelect salesperson nameSourceSelect ‘Referral – Staff’Closed AtSelect ‘Initial Visit’Referring Membership #Skip - not applicableMembership DetailsMember Name (Prospect/Member) Input Member NameMembership #Input Membership # of membership agreementBarcode #Input Barcode numberFitness Planner/Consult #Input Fitness Planner number (minimum 4 digit number)Club AccessSelect ‘Fitness Plus’Membership or Services Type Select ‘Assoc Discounted 1 Year Term’Towel Service‘NO’ not applicableBasket Rental‘NO’ not applicableSmall Locker Rental‘NO’ not applicableLarge Locker Rental‘NO’ not applicableNo Commitment Addon‘NO’ not applicableExecutive Change Room‘NO’ not applicablePersonal Training Details (Optional) – you can fill this in if member purchase PT@POSPersonal Training Session TypeSelect Session Type# of Sessions Input # of SessionsPersonal TrainerSelect EmployeeDatesAgreement Effective Dateleave as today's dateMembership Start Dateleave as today's datePAP Start Date / AmountDate off PAP scheduleDate Agreement Properly Prepared Select today's date if the agreement is complete and signedVoid Rec'd DateSkip - not applicableRevenue DetailsRevenue Type 1F&LAmount 7.65Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 109

Revenue Type 2Term Mem (you can leave it as is)Amount 0.00Total Upfront Agreement Value 8.03GST 0.38PST 0.00CommentsExample screen shot from a saved Associate Discounted 1 Year TermMembership in Manitoba.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 110

If you have any questions, please contact your Club Support Clerk/Club SupportSupervisor or CARE Support Specialist.________________________________________________________________________________________Associate Discounted 1 Year Term Membership for QuebecPaperwork:Fill out a ‘Membership Agreement’, and attach the Associate Discounted 1 Year TermMembership certificate to the Membership Agreement. The membership must have anexpiry date of 1 year; it cannot be an open ended membership as they must provide anew certificate upon renewal to get this great rate next year. If they don’t get anothercertificate from the associate the next year then they must renew at our current rates. Ifthe certificate is not attached then the sale will be made incomplete until this certificate isprovided. Two units will be assigned on this sale.To Enter in CARE:1. Log into CARE as yourself.2. Click on Daily Sales Journal from the Main menu.3. Click on today’s date from the Calendar.4. C lick on Record a New Agreement from Agreement Menu.5. Enter the following information for the associate.Transaction DetailsActivity TypeChange Form #PT Contract #Sold BySelect ‘New Member’Skip – not applicableSkip - not applicableSelect salesperson nameConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 111

SourceSelect ‘Referral – Staff’Closed AtSelect ‘Initial Visit’Referring Membership #Skip - not applicableMembership DetailsMember Name (Prospect/Member) Input Member NameMembership # Input Membership #Barcode #Input Barcode numberFitness Planner/Consult #Input Fitness Planner number (minimum 4 digit number)Club AccessSelect ‘Fitness Plus’Membership or Services Type Select ‘Assoc Discounted 1 Year Term’Towel Service‘NO’ not applicableBasket Rental‘NO’ not applicableSmall Locker Rental‘NO’ not applicableLarge Locker Rental‘NO’ not applicableNo Commitment Addon‘NO’ not applicableExecutive Change Room‘NO’ not applicablePersonal Training Details (Optional) – you can fill this in if member purchase PT@POSPersonal Training Session TypeSelect Session Type# of Sessions Input # of SessionsPersonal TrainerSelect EmployeeDatesAgreement Effective Dateleave as today's dateMembership Start Dateleave as today's datePAP Start Date / AmountSkip - not applicableDate Agreement Properly Prepared Select today's date if the agreement is complete and signedVoid Rec'd DateSkip - not applicableRevenue DetailsRevenue Type 1F&LAmount 7.65Revenue Type 2Term Mem (you can leave it as is)Amount 0.00Total Upfront Agreement Value 8.03GST 0.38PST 0.60CommentsExample screen shot from a saved Associate Discounted Membership in Quebec.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 112

Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 113

Associate Discounted 1 Year Term Membership for all Clubs - (excluding Manitobaand Quebec)Paperwork:Fill out a ‘Membership Agreement’ and attach the Associate Discounted 1 Year TermMembership coupon to the membership agreement. If the coupon is not attached the salewill be made complete. The Associate Discounted 1 Year Term will have 2 units assignedto this agreement.To Enter in CARE:1. Log into CARE as yourself.2. Click on Daily Sales Journal from the Main menu.3. Click on today’s date from the Calendar.4. Click on Record a New Agreement from Agreement Menu.5. Enter the following information for the associate.Transaction DetailsActivity TypeSelect ‘New Member’Change Form #Skip – not applicablePT Contract #Skip - not applicableSold BySelect salesperson nameSourceSelect ‘Referral – Staff’Closed AtSelect ‘Initial Visit’Referring Membership #Skip - not applicableMembership DetailsMember Name (Prospect/Member) Input Member NameMembership # Input Membership #Barcode #Input Barcode numberFitness Planner/Consult #Input Fitness Planner number (minimum 4 digit number)Club AccessSelect ‘Fitness Plus’Membership or Services Type Select ‘Assoc Discounted 1 Year Term’Towel Service‘NO’ not applicableBasket Rental‘NO’ not applicableSmall Locker Rental‘NO’ not applicableLarge Locker Rental‘NO’ not applicableNo Commitment Addon‘NO’ not applicableExecutive Change Room‘NO’ not applicablePersonal Training Details (Optional) – you can fill this in if member purchase PT@POSPersonal Training Session TypeSelect Session Type# of Sessions Input # of SessionsPersonal TrainerSelect EmployeeDatesAgreement Effective Dateleave as today's dateMembership Start Dateleave as today's datePAP Start Date / AmountSkip - not applicableDate Agreement Properly Prepared Select today's date if the agreement is complete and signedVoid Rec'd DateSkip - not applicableRevenue DetailsRevenue Type 1It will come up as F & L (optional: you can adjust it or leave it)Amount Leave the amount as 0.00Revenue Type 2Term MemAmount199.00 (Ontario price before tax)Total Upfront Agreement Value 208.95 (Ontario price including taxes)GST9.95 (in Ontario),Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 114

PST 0.00CommentsExample screen shot from a saved Associate Discounted 1 Year Term Membership.(This agreement considers as a Term Membership).________________________________________________________________________________________Complimentary Family MembershipPaperwork:Fill out a ‘Membership Agreement’ for the Family membership; the General Manager mustsign in the witness section as authorization and attach the certificate of proof that theassociate is entitled to a Complimentary Family Membership ( 9 month or 1 year).To Enter in CARE:1. Log into CARE as yourself.2. Click on Daily Sales Journal from the Main menu.3. Click on today’s date from the Calendar.4. Click on Record a New Agreement from Agreement Menu.5. Enter the following information for the associate.Transaction DetailsActivity TypeChange Form #PT Contract #Sold BySourceClosed AtSelect ‘New Member’Skip – not applicableSkip - not applicableSelect salesperson nameSelect ‘Referral – Staff’Select ‘Initial Visit’Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 115

Referring Membership #Skip - not applicableMembership DetailsMember Name (Prospect/Member) Input Member Name of the Associate OtherMembership # Input membership #Barcode #Input barcode numberFitness Planner/Consult #Input Fitness Planner number (minimum 4 digit number)Club AccessSelect ‘Fitness Plus’Membership or Services Type Select ‘Associate Other Membership’Towel Service‘NO’ not applicableBasket Rental‘NO’ not applicableSmall Locker Rental‘NO’ not applicableLarge Locker Rental‘NO’ not applicableNo Commitment Addon‘NO’ not applicableExecutive Change Room‘NO’ not applicablePersonal Training Details (Optional)Personal Training Session TypeSelect Session Type# of Sessions Input # of SessionsPersonal TrainerSelect EmployeeDatesAgreement Effective Dateleave as today's dateMembership Start Dateleave as today's datePAP Start Date / AmountSkip - not applicableDate Agreement Properly Prepared Select today's date if the form is complete and signedVoid Rec'd DateSkip - not applicableRevenue DetailsRevenue Type 1TermAmount 0.00Total Upfront Agreement Value 0.00GST 0.00PST 0.00CommentsExample screen shot from a saved Complimentary Family Membership.( This agreement considers as a Term Membership).Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 116

Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 117

________________________________________________________________________________________Complimentary Associate MembershipPaperwork:Fill out an “Associate Membership Agreement Form” (located in Policy and Procedurehandbook, and the New Associate Welcome Package). General Manager must sign thewitness section to authorize this membership type.To Enter in CARE:1. Log into CARE as yourself.2. Click on Daily Sales Journal from the Main menu.3. Click on today’s date from the Calendar.4. Click on Record a New Agreement from Agreement Menu.5. Enter the following information for the associate.Transaction DetailsActivity TypeChange Form #PT Contract #Sold BySourceClosed AtReferring Membership #Membership DetailsMember Name (Prospect/Member)Membership #Select ‘New Member’Skip – not applicableSkip - not applicableSelect salesperson nameSelect ‘Referral – Staff’Select ‘Initial Visit’Skip - not applicableInput Member Name of the new associateInput membership # (payroll id.)Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 118

Barcode #Input a barcode numberFitness Planner/Consult # Select Fitness Planner numberClub AccessSelect ‘Fitness Plus’Membership or Services Type Select ‘Associate Membership’Towel Service‘NO’ not applicableBasket Rental‘NO’ not applicableSmall Locker Rental‘NO’ not applicableLarge Locker Rental‘NO’ not applicableNo Commitment Addon‘NO’ not applicableExecutive Change Room‘NO’ not applicablePersonal Training Details (Optional)Personal Training Session Type Select Session Type# of Sessions Input # of sessionsPersonal TrainerSelect EmployeeDatesAgreement Effective Date leave as today's dateMembership Start Dateleave as today's datePAP Start Date / AmountSkip - not applicableDate Agreement ProperlyPreparedSelect today's date if the form is complete andsignedVoid Rec'd DateSkip - not applicableRevenue DetailsRevenue Type 1NoneAmount 0Total Upfront Agreement Value NoneGST 0.00PST 0.00CommentsExample screen shot from a saved Complimentary Associate Membership.( This agreement considers as a Term Membership).Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 119

____________________________________________________________________________________Extend the Complimentary Associate MembershipThis is to renew the Complimentary Associate Membership and extend it for another year.Paperwork:Fill out a change form to extend another year for the associate. The club GeneralManager must sign to authorize the extension for another year on their membership.To Enter in CARE:1. Log into CARE as yourself.2. Click on Record Activity Log - Non-Financial from the Main menu.3. Click on today’s date from the Calendar.4. Enter the following information in the Daily Activity Log Input screen for the associate.Activity TypeMembership#ChgForm/PT Contract#EmployeeName(Prospect/Member)Desc/CommentsSelect C/F info onlyInput the Associate Membership # (AA99999999)Input the number from the change formSelect General Manger’s nameInput the associate nameExtend Associate MembershipClick on to save the information toredisplay.Confidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 120

Assumption of Risk, Release, Waiver of Claim and Indemnity[back to top]This document affects legal rights and creates legal responsibilities. Please read thisdocument carefully.Please complete this form on behalf of the minor:__________________________________________________________________Prepared this _______ Day of ____________________ 20_______To: GoodLife FitnessPrepared for: (Name of Associate)In the course of employment with GoodLife, said minor will be required to participate in anoff-site training program (hereafter referred to as the Excursion) located at__________________________ on (Date) at (Time).I/We the Parents/Guardians ______________________________________, the parent(s) or legalguardian(s) of _____________________________________, agree to the terms of thisAssumption of Risk, Indemnity, Waiver of Claim and Release (collectively the"Agreement"). In particular:1. Assumption of RiskI/We, the Parents/Guardians for myself/ourselves and on behalf of the ProspectiveParticipant (herein I/We the Parents/Guardians), ACKNOWLEDGE AND AGREE THATparticipation of the said minor in the Excursion involves potential dangers, risks andhazards (the “Risks”) that include, but are not limited to:a) Death or injury occurring through vehicle accidents during transportation betweenvarious communitiesb) Death or injury due to activities related to construction work or other communitydevelopment activityc) Death or injury due to the handling and usage of equipment and suppliesd) Death, injury or illness from consumption of unsanitary food and watere) Death, injury or illness due to the contraction of a communicable diseasef) Death, injury or personal loss incurred as a result of political instability, criminalviolation, and hostile environmentsg) Death, injury or personal loss incurred as a result of a hurricane, volcanic eruption, anearthquake or other type of natural disasterI/WE THE PARENTS/GUARDIANS FURTHER ACKNOWLEDGE AND AGREE THATparticipation of the said minor in the Excursion is entirely at his/her own risk and that I/Wethe Parents/Guardians freely accept all the inherent risks arising through the participationof the said minor in the Excursion and the possibility of personal injury, death, kidnapping,property damage and loss resulting therefrom.2. Release and Waiver of ClaimI/WE THE PARENTS/GUARDIANS WAIVE ANY AND ALL claims I/We theParents/Guardians may now, and in the future, have against, and release and dischargefrom all liability, and agree not to sue GoodLife, its members, directors, officers,associates, volunteers, agents, representatives, and each of them and their respectiveagents, executives, administrators, representatives, heirs, successors and assigns (theReleasees"), with respect to any and all liability, costs (including legal costs), claims,damages, demands, actions and causes of action of whatever kind which might arise fromor in connection with the said minor's participation in the Excursion including, withoutlimitation, any personal injury, illness, death, property damage, or financial loss or otherConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 121

loss suffered by him/her, or any other family members or dependants, arising, directly orindirectly, from his/her participation in the Excursion, whether foreseen or unforeseen andregardless of the cause thereof including, without limitation, negligence or partialnegligence on the part of the Releasees or any of them but excluding willful misconduct.3. IndemnityI/WE THE PARENTS/GUARDIANS AGREE to hold harmless and to indemnify theReleasees for any and all claims made against any of the Releasees by any person,including any claim or action by or on behalf of my spouse or dependants, for damagessuffered or costs incurred arising out of or related to any aspect of the said minor'sparticipation in the Excursion, including, without limitation, any of the matters described orcontemplated in Clause 2 hereof.4. UnderstandingI/WE THE PARENTS/GUARDIANS DECLARE that I/We the Parents/Guardians have hadthe opportunity to seek independent legal advice with respect to the matters addressed inthis Agreement, that I/We the Parents/Guardians fully understand the terms of thisAgreement and that I/We the Parents/Guardians have not been influenced by anyrepresentations or statements made by or on behalf of (Company Name) not recorded inthis document.I/WE THE PARENTS/GUARDIANS CONFIRM THAT I/We the Parents/Guardians are thefull age of 18 years and have read and understood the Agreement prior to signing it andI/We the Parents/Guardians agree that the Agreement will be binding upon my/our heirs,next-of-kin, executors, administrators and successors. I/We the Parents/Guardians areaware that by signing this Agreement I/We the Parents/Guardians are releasing andwaiving certain legal rights, including the right to sue and to be awarded potentiallysubstantial damages, which the said minor or my/our heirs, next-of-kin, executors,administrators and assigns have or may have against the Releasees.5. Jurisdiction and Choice of LawI/WE THE PARENTS/GUARDIANS AGREE that this Agreement shall be governed in allrespects by and interpreted in accordance with the laws of the Province of (NAME OFPROVINCE) and that the parties hereby attorn to the exclusive jurisdiction of the (NAMEOF PROVINCE) courts.6. Complete AgreementI/WE THE PARENTS/GUARDIANS UNDERSTAND AND AGREE that this Agreementcontains the entire agreement between GoodLife and me/us and that the terms of thisAgreement are contractual and not merely a recital. I/We the Parents/Guardians theParent/Guardians sign this agreement freely, voluntarily and without duress. By my/oursignature below, I/We the Parents/Guardians the Parents/Guardians also declare thatI/We the Parents/Guardians have discussed the Release with the PARTICIPANT and thePARTICIPANT understands that the Release continues to bind the PARTICIPANT shouldthe PARTICIPANT attain the age of majority before the Release expires.Dated at _______________________, this ________ day of ________________, 20____._____________________________Name of General Manager_____________________________Parent/Legal Guardian_____________________________Witness_____________________________Under Age ParticipantConfidential and Proprietary Information of GoodLife Fitness Clubs | V16 October 2009 122