Q4: Analyze the performance of the district vs. the rest of country

Q4a: If the BPI is a good surrogate for potential, how does the district perform?

Q4b: Evaluate the U.S., Region, and the New England districts sales growth rate for 2010-2011

Q4c: Calculate the average sales per salesperson for the New England district, and compare that against the company average

Q4d: Evaluate the first six months of 2012 for U.S. and the district

Exhibit 1: US Commercial Product Line Sales U.S. 2102 Forecasted Sales U.S. 1st Half 2012 U.S.1st Half New England Forecasted 2012 Actual District 2011 Sales Sales Sales GM U.S. 2011 Product Line U.S. 2011 Sales Percent Gross Margin Product Cardio Strength Technology Small Exercise Equipment Total $ 84,870,000 $ 46,125,000 $ 35,055,000 41% $34,796,700 $ 96,751,800 $43,538,310 $ 43,449,600 $ 3,009,051 31% $14,298,750 $ 50,737,500 $ 24,354,000 $22,450,000 $2,581,354 38% $13,320,900 $ 40,313,250 $20,156,625 $ 21,984,300 $ 2,211,506 $ 18,450,000 $ 184,500,000 32% $ 5,904,000 $19,557,000 $ 7,822,800 $ 9,905,269 $ 1,681,389 37% $ 68,320,350 $207,359,550 $95,871,735 $97,789,169 $ 9,483,300 Exhibit 3: 2011 Commercial Sales by Individual - New England District Product Cardio Strength Technology Small Exercise Equipment Total Ellis Barrow Hammond Foster Gibbons Concetta Avery Total $ 716,937 $ 409,679 $ 531,065 $ 469,423 $ 398,299 $324,329 $ 159,319 $3,009,051 $ 418,214 $ 580,378 $ 379,332 $ 412,524 $ 411,575 $213,374 $165,958 $2,581,354 $ 617,363 $ 204,839 $ 348,985 $ 398,299 $ 318,639 $170,699 $152,681 $2,211,506 $ 238,979 $ 512,098 $ 257,946 $ 142,250 $ 199,149 $ 145,094 $185,873 $1,681,389 $1,991,493 $1,706,994 $1,517,328 $1,422,495 $1,327,662 $853,497 $ 663,831 $9,483,300 Exhibit 4: Individual Sales Performance - New England District, 2011 2011 % of 2012 District H1 % of Active 2011 Calls Salesperson 2011 Sales District Sales District Accounts* per year Ellis $ 1,991,493 21% $ 896,172 Barrow $ 1,706,994 18% $ 819,357 Hammond $ 1,517,328 16% $ 728,317 Foster $ 1,422,495 15% $ 568,998 Gibbons $ 1,327,662 14% $ 597,448 Concetta $ 853,497 9% $ 460,888 Avery $ 663,831 7% $ 385,022 TOTAL $ 9,483,300 $ 4,456,203 * Active accounts placed orders within the past year 20% 18% 16% 13% 13% 10% 9% 215 275 230 230 140 830 1,370 1,400 902 955 820 1,158 7,435 $9,262.76 $ 6,207.25 $6,597.08 $ 6,184.76 $9,483.30 $4,064.27 $ 2,183.65 210 304 1,604 Exhibit 5 - Individual Compensation and Expenses, New England District, 2011 Total Total Compensation Salary Commissions Compensation Expenses and Expenses Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery e Total $ 93,753 $ $ 57,630 $ $ 54,808 $ $ 48,807 $ $ 48,600 $ $ 32,960 $ $ 30,274 $ $366,832 $ 76,707 $ 55,370 $ 50,592 $ 46,893 $ 32,400 $ 31,040 $ 27,946 $ 320,948 $ 170,460 $ 14,800 $ 113,000 $ 23,900 $ 105,400 $ 17,918 $ 95,700 $ 27,753 $ 81,000 $ 10,500 $ 64,000 $ 31,700 $ 58,220 $ 29,400 $ 687,780 $ 155,971 $ 185,260 136,900 123,318 123,453 91,500 95,700 87,620 843,751 S StepSmart U.S. Commercial Sales History US Region District 2009 $ 149,628,483 $ 58,886,424 $ 8,369,119 2010 $ 164,292,075 $ 66,188,341 $ 8,954,958 2011 $ 184,500,000 $ 73,800,000 $9,483,300 Territory Ellis Boston suburbs Barrow Hammond City of Boston Foster NH Gibbons Eastern MA and RI Concetta VT and Western MA Avery ME TOTAL Actual % of 2011 Buying Power Sales 1.27 1.08% 1.8 0.93% 0.8 0.82% 0.97 0.77% 0.63 0.72% 1.08 0.46% 0.94 0.36% 7.49 5.14% Exhibit 1: US Commercial Product Line Sales U.S. 2102 Forecasted Sales U.S. 1st Half 2012 U.S.1st Half New England Forecasted 2012 Actual District 2011 Sales Sales Sales GM U.S. 2011 Product Line U.S. 2011 Sales Percent Gross Margin Product Cardio Strength Technology Small Exercise Equipment Total $ 84,870,000 $ 46,125,000 $ 35,055,000 41% $34,796,700 $ 96,751,800 $43,538,310 $ 43,449,600 $ 3,009,051 31% $14,298,750 $ 50,737,500 $ 24,354,000 $22,450,000 $2,581,354 38% $13,320,900 $ 40,313,250 $20,156,625 $ 21,984,300 $ 2,211,506 $ 18,450,000 $ 184,500,000 32% $ 5,904,000 $19,557,000 $ 7,822,800 $ 9,905,269 $ 1,681,389 37% $ 68,320,350 $207,359,550 $95,871,735 $97,789,169 $ 9,483,300 Exhibit 3: 2011 Commercial Sales by Individual - New England District Product Cardio Strength Technology Small Exercise Equipment Total Ellis Barrow Hammond Foster Gibbons Concetta Avery Total $ 716,937 $ 409,679 $ 531,065 $ 469,423 $ 398,299 $324,329 $ 159,319 $3,009,051 $ 418,214 $ 580,378 $ 379,332 $ 412,524 $ 411,575 $213,374 $165,958 $2,581,354 $ 617,363 $ 204,839 $ 348,985 $ 398,299 $ 318,639 $170,699 $152,681 $2,211,506 $ 238,979 $ 512,098 $ 257,946 $ 142,250 $ 199,149 $ 145,094 $185,873 $1,681,389 $1,991,493 $1,706,994 $1,517,328 $1,422,495 $1,327,662 $853,497 $ 663,831 $9,483,300 Exhibit 4: Individual Sales Performance - New England District, 2011 2011 % of 2012 District H1 % of Active 2011 Calls Salesperson 2011 Sales District Sales District Accounts* per year Ellis $ 1,991,493 21% $ 896,172 Barrow $ 1,706,994 18% $ 819,357 Hammond $ 1,517,328 16% $ 728,317 Foster $ 1,422,495 15% $ 568,998 Gibbons $ 1,327,662 14% $ 597,448 Concetta $ 853,497 9% $ 460,888 Avery $ 663,831 7% $ 385,022 TOTAL $ 9,483,300 $ 4,456,203 * Active accounts placed orders within the past year 20% 18% 16% 13% 13% 10% 9% 215 275 230 230 140 830 1,370 1,400 902 955 820 1,158 7,435 $9,262.76 $ 6,207.25 $6,597.08 $ 6,184.76 $9,483.30 $4,064.27 $ 2,183.65 210 304 1,604 Exhibit 5 - Individual Compensation and Expenses, New England District, 2011 Total Total Compensation Salary Commissions Compensation Expenses and Expenses Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery e Total $ 93,753 $ $ 57,630 $ $ 54,808 $ $ 48,807 $ $ 48,600 $ $ 32,960 $ $ 30,274 $ $366,832 $ 76,707 $ 55,370 $ 50,592 $ 46,893 $ 32,400 $ 31,040 $ 27,946 $ 320,948 $ 170,460 $ 14,800 $ 113,000 $ 23,900 $ 105,400 $ 17,918 $ 95,700 $ 27,753 $ 81,000 $ 10,500 $ 64,000 $ 31,700 $ 58,220 $ 29,400 $ 687,780 $ 155,971 $ 185,260 136,900 123,318 123,453 91,500 95,700 87,620 843,751 S StepSmart U.S. Commercial Sales History US Region District 2009 $ 149,628,483 $ 58,886,424 $ 8,369,119 2010 $ 164,292,075 $ 66,188,341 $ 8,954,958 2011 $ 184,500,000 $ 73,800,000 $9,483,300 Territory Ellis Boston suburbs Barrow Hammond City of Boston Foster NH Gibbons Eastern MA and RI Concetta VT and Western MA Avery ME TOTAL Actual % of 2011 Buying Power Sales 1.27 1.08% 1.8 0.93% 0.8 0.82% 0.97 0.77% 0.63 0.72% 1.08 0.46% 0.94 0.36% 7.49 5.14%