PAYMENT TERMS, CONDITIONS & ACKNOWLEDGEMENTS

PRESALE ACKNOWLEDGEMENT: (Applies to memberships purchased prior to the studio opening or during grand opening special rates being offered)

I understand that I am enrolling in a presale membership and am getting special pricing and enrollment discounts. I understand that there is no guaranteed opening date/time frame, and that my membership billing will not begin until the 1st of the month following an official approval from the local city and the corporate HOTWORX headquarters once the studio is ready for me to properly experience HOTWORX. I understand there can be various delays with opening a business including but not limited to construction, weather, regulations, and the like. I further understand that I cannot begin using my membership benefits until the location listed in this agreement has opened for business and I have completed my New Member Orientation there.

LOCAL, STATE, FEDERAL TAX NOTICES:

I understand that some taxes may apply to my membership and agree to pay any and all applicable local, state, and federal taxes, which may be added to the installment amounts, enrollment fees, freeze fees, and prorated dues shown above as required by law for the business to collect.

AUTO-RENEWAL TERMS & CONDITIONS

AUTO-RENEWAL DETAILS: Following the initial 90-day program installment terms listed above, this membership agreement will renew and automatically continue on a month-to-month basis at the program installment amount listed above.

AUTO-RENEWAL CANCELLATION: This auto-renewal may be canceled after the initial program installment term listed above is fulfilled, with a 60-day cancellation notice. The notice must be submitted in person at the facility or submitted via certified mail to the location where the member is enrolled. Any outstanding balances plus any monthly program installments scheduled during the 60-day notice period will be due in full at time of cancellation to satisfy the cancellation policy. Any months billed at a discounted rate as part of a freeze period do not count towards the initial program installment terms.

PROGRAM INSTALLMENT AMOUNT: The program installment rate listed in this agreement may be increased up to 5% per calendar year after the initial term is satisfied.

CUSTOMER RIGHT TO CANCEL

(A) BUYER MAY CANCEL THIS CONTRACT BY SENDING NOTICE OF YOUR WISH TO CANCEL TO THE STUDIO BEFORE MIDNIGHT ON THE THIRD BUSINESS DAY AFTER YOU SIGN THE CONTRACT. THIS NOTICE MUST BE HAND DELIVERED TO THE STUDIO OR SENT REGISTERED MAIL TO THE ADDRESS LISTED BELOW. IF HAND DELIVERED, YOU MUST OBTAIN WRITTEN CANCELLATION FORM, WHICH THE STUDIO WILL FURNISH. WITHIN FIFTEEN DAYS OF RECEIPT OF THIS NOTICE, THE STUDIO SHALL RETURN ANY PAYMENTS MADE ON ANY NOTE EXECUTED BY THE CUSTOMER IN CONNECTION WITH THE CONTRACT. IF YOU USE THE STUDIO FACILITIES OR SERVICES, THE STUDIO MAY CHARGE YOU A REASONABLE FEE BASED ON DAYS OF ACTUAL USE. (B) THIS RIGHT OF CANCELLATION SHALL AFFECT ONLY THE FINANCIAL OBLIGATIONS UNDER THE CONTRACT AND CUSTOMER�S RIGHT TO USE THE STUDIO�S PHYSICAL FITNESS SERVICE.

PAYMENT METHOD DETAIL

The buyer of this installment program has elected to provide checking account payment information for his/her traditional checking account and/or credit card account information to be debited/billed automatically, in accordance the payment terms listed above and within this document, without further signature by the buyer. A voided check may be required with this signed agreement when checking account information is provided. Additionally, a credit card must be provided to be saved on file as an authorized method of payment to be used for �on account� purchases and in the event the buyers checking account is unable to fulfill the monthly installment amount. Buyer may change or update account information in the studio in writing and must provide a new voided check or present physical card for electronic capture. If a 2nd form of payment is not provided and on file, the monthly installment fee will be increased by $5 monthly. Below is the account information provided by and authorized for use by the buyer to fulfill payment terms outlined in this agreement:

OTHER NOTABLE TERMS AND CONDITIONS

Delinquent/un-collectable program installment payments: In the event the buyers automated payments are returned unpaid for reasons including but not limited to non-sufficient funds, closed account, declines or the like, buyer will be assessed a reasonable return fee not to exceed limited set forth by applicable state law. This return fee will be debited from buyer�s bank account or other form of payment provided on the members file in addition to the uncollected balance(s).

Lapse in member use: All payment installments including applicable return fees must be made regardless of services used.

Installment Freeze Provisions: Buyer may request to freeze the membership in person or in writing sent certified mail where the membership was purchased. Freeze requests will be granted in calendar month increments not to exceed 3 months. During the frozen period, a $9/month freeze fee will continue to be billed on the same installment date listed in this agreement. Access to the studio will not be permitted via non staffed entry system during frozen months. Sessions can be purchased during a frozen month during staffed hours only. If member elects to freeze longer than 3 months, he/she must submit this request in writing and may receive confirmation of approval for the extension. Applicable taxes may apply.

Reciprocation Fees: Active members are welcome to use all other HOTWORX Studio facilities. Active SWEAT EVERYWHERE members can reciprocate their member benefits at any HOTWORX Studio with no fee for access, with the exception of locations in premium markets. Discounted reciprocation fees do apply however for PREMIUM MARKET locations. Active SWEAT HERE members may use other HOTWORX Studios during staffed hours for a $10/day reciprocation fee. Increased fees will apply in premium market locations. All fees are subject to any local, state, and federal taxes paid to the visiting location.

Refunds and Transfer of services: Membership dues, enrollment fees, packages and sessions are non-refundable and not transferrable. Only the buyer/member is authorized access to the facility and to use the active services on the account and as outlined in this agreement.

Oral Statements: No oral promises or statements made by staff or other members of HOTWORX are part of this contract.

Cancellation: If a member wants to cancel, a 60-day cancellation notice is required and can be proceessed after the initial program installment term is fulfilled. The cancellation notice must be completed in person at the studio location listed in this agreement and the cancellation form must be signed. If an immediate cancellation is needed before the initial program installment term is fulfilled, a $99 immediate cancel fee will be due at time of cancellation and must be done in person at the studio listed in this agreement. No further services nor access will be granted once an immediate cancellation is processed. Once a membership cancellation is processed, and the same member returns to join again, a full enrollment and current monthly installment rates will apply and new terms will also apply. Any prior payments and/or discounts are forfeited at time of cancellation.

MEMBER RULES, NOTICES, DISCLOSURES & LIABILITY STATEMENTS

Member Rules: Member may use at his/her own risk, all equipment available according to the membership type purchased. By signing this agreement, the member agrees to abide by all HOTWORX rules, policies and regulations now in effect or to become effective at any future date. This includes that member agrees to properly use only the approved HOTWORX Yoga Mat and HOTWORX Yoga Towel for all Isometric workouts. All rules, regulations and services are subject to change without notice. Drugs, alcohol and firearms or weapons of any type on premises are strictly prohibited. Horseplay and any disruptive conduct including use of profanities is not allowed. Damage to or tampering with any equipment including saunas, televisions, computers and other property is strictly prohibited. Member also agrees that any provided access credentials including but not limited to a mobile access pass, PIN number, biometrics data or the like is issued solely to the member listed on this contract only and must not be shared with or provided to any other individuals. Violation of HOTWORX rules may result in a downgrade of the membership or termination and applies to Sweat Here and Sweat Everywhere members using their home studio and when using their membership benefits at other locations. See posted notices for more information.

Cleanliness and Conduct: Suitable, presentable and clean clothing in good repair is to be worn by Member at Member�s own expense. Members wearing clothing deemed inappropriate by management may be asked to leave the facilities. Members should conduct themselves in such a manner that will prevent the Studio from being damaged; its cleanliness being diminished; will not bring undue attention to themselves with loud grunting or noises, or in any way interfere with the positive environment of the studio or with the attitude of promoting health in the facilities. Negative attitudes, threats, verbal and physical fighting, disruptive or threatening conduct will not be tolerated. Unauthorized outside business solicitation will not be tolerated in/or on the premises. Sexual harassment of any type will not be tolerated. These behaviors may subject user and Member to civil and/or criminal penalties and may result in termination of membership. Rental mats, towels, foam rollers and any other non personal belongings should not be removed from the studio at any time. Members should use provided cleaning supplies to wipe down cycles, rowers, benches and all other equipment after each use.

Courtesy: To promote safety and more time efficient exercise programs, remember to return all rollers, mats towels, bands or other functional training tools to designated areas. During high-traffic workout hours, be sure to adhere to posted appointment times and policies so as not to interfere with other member workouts. This includes but is not limited to opening and closing of HOTWORX doors during sessions, adjusting temperature away from optimal setting of 125 when in a group, adjusting volume of workout and may include joining sessions with other members to help staff to accommodate other member and guest appointments and to enhance the spirit of group exercise and teamwork.

Guest Privileges: Valid members may bring a guest(s) for visits and/or trials during posted staffed hours only which shall include use of all the Studio facilities once they have registered with the staff, provided photo ID and completed necessary documentation. SWEAT HERE AND SWEAT EVERYWHERE Members may bring as many guests as they would like for any one single visit; however, a particular guest may come no more than three times total in a 12 month period and not more than one time in one calendar month. All guests must be at least 18 years of age unless a signed consent by a legal guardian has been completed in the studio. Guests are never allowed to enter the facility during non-staffed hours. Guests may not enter the facility at any time when staff is not present regardless of the member having access to allow entry. Guests must always check in with front desk staff before using any services. Guest passes are available and will be provided to all members to distribute to friends, family and other guests to use if they choose to visit the studio unaccompanied by an active member for a one-time VIP session. It is highly suggested that members contact the studio to schedule guest appointments at least 24 hours ahead of the visit to ensure availability for the guest to do a HOTWORX workout. Members are prohibited from providing access credentials such as a mobile pass, PIN number or the like to any other individuals including their guests. In the event a member is found to violate guest privilege rules the studio has the right to charge a fee equal to the daily single session fee using the method of payment provided as part of this membership agreement.

MEMBER LIABILITY: RELEASE OF LIABILITY FOR PERSONAL INJURIES AND FOR PERSONAL LOSS OF PROPERTY AT THE STUDIO

Member and or guest(s) expressly agrees that all use of the HOTWORX facilities and equipment shall be at the member�s sole risk. The ownership nor staff shall not be liable to member and member shall hold harmless ownership and staff from and against any and all claims, suits, or demands, including, but not limited to those for bodily injury, illness, disease, or death sustained by member and/or its guest(s) or property loss or damage of member and / or its guest(s), arising out of or in any way connected with the services and access to the facility provided by ownership or staff, regardless of whether or not any such claim, suit or demand shall arise in whole or in part from the sole or concurrent negligence, omission, or fault of any member of ownership or staff, or strict liability or product liability. The ownership nor staff shall be responsible or liable to member and/or its guest(s) for articles lost or stolen in the studio or for loss or damage to any other guest(s), including wallets, keys, jewelry, automobile, and the like. Member assumes full responsibility for any injuries, damages, or loss which may occur to Member or his/her guest(s) and forever releases HOTWORX Franchising LLC, and their owners, directors, officers, agents, employees, insurers, successors, assigns, parents, subsidiaries and affiliated companies, guests, and invitees from liability, claims and/or suits. Member acknowledges his/her duty to exercise ordinary care for the protection of himself and other members while using the premises. The Member assumes the risk of physical activity with his/her own physical condition and acknowledges that he has received advice from his/her doctor that he is capable of such physical exercise or that he will seek such advice or that he assumes the risk of proceeding without such advice. Buyer acknowledges that no representation has been made regarding qualification of staff, facilities or services, or results to be obtained by use of the same.

Statement of Health: Member warrants that he/she is in good health and that he/she has no condition, which could be aggravated or worsened by usage of HOTWORX facilities. Further, Member warrants that should he/she develop a health condition which could be aggravated by usage of HOTWORX facilities, that he/she will immediately notify management in writing of such conditions.

Staffed & Non-Staffed Hours: HOTWORX is a 24-hour access studio. Staffed hours shall be subject to change at the sole discretion of the Studio. The member has agreed to purchase a membership that allows access to the facility during both staffed and non-staffed hours. As such, the Member is aware that there will be no supervision and/or assistance during non-staffed hours. The member is also aware that if he/she is injured, becomes unconscious, suffers a stroke or heart attack that there will likely be no one to respond to the emergency and this facility has no duty to provide assistance. Even though this facility is equipped with surveillance cameras and a �panic �button�/lanyard, it is likely that should the Member require immediate assistance, none will be provided. The Studio HIGHLY recommends that Members have a workout partner accompany them while at the Studio, but it is up the Members discretion. It is further advised that members use monitored panic button/lanyard devices if and when available, when they are in the facility during non-staffed hours. Member also agrees that any provided access credentials including but not limited to a mobile access pass, PIN number, biometrics data or the like is issued to the member solely listed on this contract only and must not be shared with or provided to any other individuals.

HEATED SERVICE & INFRARED EXPOSURE NOTICES AND CONSENT AGREEMENT:

Always follow manufacturers warnings and directions for use, which can be provided, by the staff upon request and/or posted in the studio. Exercising in hot temperatures can put stress on the cardiovascular system. Therefore, hot exercise programs are not recommended for: 1. Individuals with chronic disease or who have suffered heat strokes or heat stress in the past, history of dizziness, fainting spells, narcolepsy, and/or history of seizures. 2. Individuals with cardiovascular disease, including aneurism, angina, atherosclerosis, congenital heart disease, high blood pressure, history of stroke, etc. 3. Individuals who have alcohol or stimulant drugs in their systems (e.g. amphetamines, cocaine, etc.) 4. Children, pregnant or nursing women or individuals with heat sensitive conditions: the safety of this technology for use by children, pregnant women and clients with heat sensitive conditions has not been confirmed. Some prescription medications like cardiac drugs, beta-blockers and anticholinergic or antimuscarinics medications (prescribed for Parkinson�s Disease or to reduce the side effects of certain anti-psychotic drugs) may interfere with the body�s heat loss mechanisms, making those who use them more susceptible to heat illness and impairing the participant�s ability to endure the rigors of the program. If you have any of the conditions described hereinbefore then you must provide the studio staff with a letter from your General Physician (on their letterhead with his name signed and printed) which letter must certify that the Physician understands the rigors of the program and that the Physician certifies you are physically fit to perform and engage in all aspects of the program and he/she provides their medical consent to your participation. Pregnant women, elderly people and those with hyper/hypotension must seek the advice of their physician before commencing or continuing with these programs. IF YOU ARE ON PRESCRIBED MEDICATION or if in any situation the following symptoms occur, heated service use must be discontinued: 1. a feeling of sudden and severe fatigue 2. nausea and/or dizziness 3. lightheadedness or fainting 4. a cessation of sweating accompanied by dry, hot skin 5. a period of inexplicable irritability, malaise, or flu-like symptoms.

PARENTAL/GUARDIAN CONSENT FOR MINORS:

For clients under age 18 whom wish to use HOTWORX services, a parent/legal guardian is required to sign this consent prior to using this facility and its services. As parent/legal guardian of the above assigned minor, I hereby grant permission for said minor to use HOTWORX services at this facility. I attest that I am the parent/legal guardian of said minor and attest to the age of the minor. I have carefully read, understood, and ensured all questions in this form have been answered to the best of my ability and I acknowledged and agreed to the above listed statements and hereby agree that said minor and I will abide by all warnings and instructions. I further understand that I am financially responsible for the minor and all related costs that may result from the minors use of the faciliy. I understand that I am responsible for the actions and results of the actions of the minor when they are using this facility and that the facility nor its owners nor staff are providing supervision of the minor. I understand that minors between 12 and 15 years of age must be accompanied by a legal guardian at all times when accessing the facility and that the guardian must be a paying member. I understand that minors between 16 and 17 years of age are permitted to access the facility without a legal guardian and are provided with 24/7 access as part of their membership terms with my consent to rules and liability waivers. I understand that violation to these and all other listed rules and notices will result in the termination of the membership. .