New Cost Scheme for LESI Conferences LESI Winter Meeting, Tokyo January 25, 2008 by Peter K. Hess, Partner Patent- und Rechtsanwälte Peter K. Hess Galileiplatz 1 81679 München Tel. +49 (89) 92 80 5-0 Fax +49 (89) 92 80 5-444 hess@bardehle.de www.bardehle.com

Content The New Model as discussed in Vancouver The Principle of the New Model The Main Cost Blocks of a LESI Conference The Gold, Silver and Bronze Packages Revenues of Future Conferences Costs of Future Conferences Surplus Sharing between LESI and Host Society

I. The New Model as discussed in Vancouver The financial arrangements between LESI and Host Society will be negotiated on a case by case basis dependent upon the actual value that LESI could bring to the organisation and conduct of the conference. If no such agreement can be reached, the „Present Model“ comes into effect. This new scheme allows societies to negotiate „tailored deals“ depending on their needs.

II. The Principle of the New Model The financal arrangements will be structured in „packages“ which include several organizational items. There will be a gold package, a silver package and a bronze package. The gold package is the „full service package“; i.e. „all“ organization is provided by LESI, the whole costs risk is carried by LESI, the major part of the surplus belongs to LESI. The silver package is the „intermediate service package“; it basically covers the organization and cost risk of the plenary sessions and the workshops. The national organizing committee is responsible for the „social part“ of the meeting. The bronze package is the „low level service package“; LESI only provides a fundamental organizational framework.

III. The Main Cost Blocks of a LESI Conference: The Munich 2005 Conference Altogether about 675 participants (who paid the registration fees) attended the Munich meeting. From the overall accounting, we extracted those positions from which we believe that they are “essential” for a successful conference. The mentioned “accounting positions” are grouped in “A)Organization, B) Conference, and C) Social Events” Thus, e.g. the pre- and post program and the social side events are not featured; they may be additionally booked and paid if such need arises and it is possible according to the respective circumstances.

A) Organization Item Related Costs of the 2005 Munich meeting Event agency (including reservation management) € 72.600,- Conference website € 43.200,- Invitations (1st + 2nd announcement, main conference brochure) € 26.000,- Conference bags € 6.000,- Name tags € 950,- Presidential suite € 5.700,- LES office at the hotel € 2.500,- Registration desk (hardware costs) € 1.800,- Hostesses € 7.500,- € 166.250,-

B) Conference Item Related Costs of the 2005 Munich meeting Room for plenary sessions € 10.300,- Costs for plenary speakers € 6.113,- Rooms for workshops on Monday + Wednesday € 11.000,- Coffee breaks € 24.000,- (600 persons) Lunch Monday + Wednesday € 36.000,- (600 persons) € 87.413,-

C) Social Events Item Related Costs of the 2005 Munich meeting Sunday reception € 20.000,- (750 persons) Monday night dinner € 53.000,- Gala dinner € 156.000,- (600 persons) Transportation € 12.000,- Side events/accompanying persons program ./. Pre- and postprogram € 241.000,-

IV. The Gold, Silver and Bronze Packages A) Organization Item Gold Silver Bronze Related Costs of the 2005 Munich Event agency (including reservation management) X € 72.600,- Conference website € 43.200,- Invitations (1st + 2nd announcement, main conference brochure) € 26.000,- Conference bags € 6.000,- Name tags € 950,- Presidential suite € 5.700,- LES office at the hotel € 2.500,- Registration desk (hardware costs) € 1.800,- Hostesses € 7.500,- € 166.250,-

B) Conference Item gold silver bronze Costs 2005 in Munich Conference hotel X Room for plenary sessions € 10.300,- Costs for plenary speakers € 6.113,- Rooms for workshops on Monday + Wednesday € 11.000,- Coffee breaks € 24.000,- (600 pers.) Lunch Monday + Wednesday € 36.000,- (600 pers.) € 87.413,-

C) Social Events Item gold silver bronze Costs 2005 in Munich Sunday reception X € 20.000,- (750 pers.) Monday night dinner € 53.000,- Gala dinner €156.000,- (600 pers.) Transportation € 12.000,- Side events/accompanying persons program ./. Pre- and postprogram € 241.000,-

V. Revenues of Future Conferences A) Expected Revenues (registration fees only!) of the Munich meeting based on expected 500 participants (estimation as of January 17, 2005) Registration fees Applications Up to August 2004 à € 999,- 143 € 142.857,- Up to October 2004 à € 1150,- 62 € 71.300,- Up to January 15, 2005 à € 1300,- 91 € 118.300,- After January 15, 2005 à € 1450,- 40,8 % (204) € 295.800,- Sum of expected revenues € 668.257,-

B) Estimation of revenues (registration fees only B) Estimation of revenues (registration fees only!) of a future LESI conference with 300 participants Registration Fees Applications à € 900,- 60% (180) € 162.000,- à € 1200,- 40% (120) € 144.000,- Sum of expected revenues € 306.000,-

VI. Costs of Future Conferences Based on 300 participants = 45% of the participants of the Munich conference A) Organization Item Gold Silver Bronze % of Munich costs Event agency (including reservation management) € 32.670,- 45% Conference website X Invitations (1st + 2nd announcement, main conference brochure) € 26.000,- 100% Conference bags € 2.700,- Name tags € 428,- Presidential suite € 5.700,- LES office at the hotel € 2.500,- Registration desk (hardware costs) € 810,- Hostesses € 3.375,- TOTAL organization € 74.183,- € 31.700,-

Percentage of Munich costs B) Conference Item gold silver bronze Percentage of Munich costs Conference hotel Room for plenary sessions € 4.635,- 45% Costs for plenary speakers € 6.113,- 100% Rooms for workshops on Monday + Wednesday € 4.950,- Coffee breaks € 10.800,- Lunch Monday + Wednesday € 16.200,- TOTAL conference € 42.698,- € 0,-

Percentage of Munich costs C) Social Events Item gold silver bronze Percentage of Munich costs Sunday reception € 9.000,- 45% Monday night dinner € 23.850,- Gala dinner € 70.200,- Transportation € 5.400,- Side events/accompanying persons program Pre- and postprogram TOTAL social events € 108.450,-

VII. Surplus Sharing between LESI and Host Society Gold Silver Bronze Total Revenue registration fees € 306.000,- Total costs of conference (300 participants) € 225.331,- Surplus € 80.669,- Cost risk for LESI € 225.331,- (100%) € 116.881,- (52%) € 31.700,- (14%) LESI-part of surplus 90% 70% 40%

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