CANCELLATION/REFUND POLICY

CANCELLATION/REFUND POLICY You, the buyer, may cancel this agreement at any time prior to midnight of the fifth (5 th ) business day of the health club studio after date of this agreement, excluding Sundays & holidays. To cancel this agreement, mail or deliver a signed & dated notice or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. The notice shall be sent to In-Shape Health Clubs at 6 S. El Dorado St, Suite 600, Stockton, CA 95202. PAYMENT METHOD Payment Method: I authorize In-Shape Health Clubs to electronically deduct the monthly dues, fees and charges, for any and all balances due monthly, which may vary from month-to-month, from my account approximately the 2 nd day of each month and continuing until my membership is terminated or canceled (and remaining dues, fees and charges owing by me in connection with my membership through the effective date of termination or cancellation are deducted), or I advise In-Shape Health Clubs to discontinue automatic payments with a 30 day written notice. I agree that I am financially responsible for all members on this agreement. In the event my credit card is declined due to a change in expiration date I authorize In-Shape Health Clubs and its payment processors to re-process my payment using an expiration date updater program. I acknowledge that this re-processing may occur on any date within the month. I agree that the expiration or cancellation of my credit card does not cancel my membership. I further agree that cancellation of my AutoPay does not cancel my membership. TERMS & CONDITIONS FOR MEMBERSHIP ARTICL E I: SUSPENSION AND TERMINATION OF MEMBERSHIP Section 1. Suspension of Membership. If payment is not fully made within 30 days after date of obligation becomes due, ISHC may, at its discretion, suspend member s membership. Monthly dues will continue to accrue until member or ISHC cancels membership. Member is responsible for full payment of dues and any back returned item fees accruing through the date of termination. If payment for past and current dues is made in full, membership will be reinstated to active status. If no payment is made or the past due amount is not paid in full, ISHC may turn the account over to a collection agency or take other action to collect the unpaid amounts owing. Section 2. Cancellation During Contractual Term. Except in the case of death, disability or qualifying relocation, if during the contractual term of this membership agreement member ceases paying the monthly dues (or in the event member s AutoPay is cancelled or rejected and alternative payment arrangements are not made by member), ISHC shall have the right to cancel the membership. In the event of such a cancellation, member shall a cancellation fee as follows: (i) if more than six (6) months remain on the member s contract prior to the cancellation, the cancellation fee will be the lesser of $250 or the total of all payments that would remain to be paid by member through the stated term of the contract; or (ii) if six (6) months or fewer remain on the members contract prior to cancellation, the cancellation fee will

be the lesser of $150 or the total of all payments that would remain to be paid by the member through the stated term of the contract. Section 3. Involuntary Cancellation. ISHC reserves the right at any time to revoke the membership or priviledges there under of any member for failure to comply with any of the rules and regulations of ISHC or for any conduct ISHC deems to be improper. The membership may be terminated by email notification or written notification mailed to the last address on ISHC records for member being cancelled. Section 4. Voluntary Cancellation After Initial Contractual Term. Except as specifically provided elsewhere herein, all cancellations of month-to-month memberships must be requested in writing via Certified mail to ISHC Member Services, 6 S. El Dorado St, Suite 600, Stockton, CA 95202, not less than 30 days prior to date said cancellation will be effective. Dues for the last 30 days must be paid when cancellation is submitted. Verbal cancellations will not be accepted. Cancellation shall be deemed submitted on the date it is received in the Member Services office. If this contract is for the use of a facility that is under construction and not yet open for business, you may cancel this agreement at any time prior to midnight on the fifth (5) business day after the date on which the facility opens for business and receive a full refund. Section 5. Cancellation due to Death and Disability. Should member die or become disabled and therefore unable to receive all services for which he/she has contracted, Member or his/her estate shall be relieved of obligations for payment for services other than those received prior to death or the onset of disability and shall be entitled to prompt proportional refund of prepaid dues for services not yet received. Member agrees that in the even he/she claims disability, he/she hereby consents to submit copies of his/her physician s report, diagnosis and prognosis to ISHC within ten (10) days of the members claiming disability. Section 6. Cancellation Due to Relocation. Should member move further than 25 miles from any facility of ISHC and ISHC is unable to transfer membership to a comparable facility associated with ISHC, member shall be relieved from the obligation of making payment for services other than those received prior to the move and shall be entitled to prompt proportional refund of prepaid dues for services not yet received. Member must submit documentation verifying the relocation within ten (10) days of member seeking to cancel the membership based on the relocation. ISHC reserves the right to charge a fee of $100.00, or if less than half of the contract term remains, a fee of $50.00. ARTICL E II: INITIATION FEES, PROCESSING FEES, DUES AND CHARGES Section 1. Changes. All fees, dues, charges and AutoPay draft dates are subject to change at any time. Section 2. Dues. Dues are to be paid on a monthly basis except those which are prepaid for the year. All dues and other obligations owed to ISHC shall be fully paid by the 15 th of the

month for which the obligation is incurred. Dues are not reduced or suspended during closure or whenever one or more of the facilities is not available for use. If member signs up for ISHC s AutoPay program, member acknowledges that member s membership dues and other fees and charges owing by member will be electronically deducted monthly from the checking account or credit card designated by member. Changes to an account by member, or automatically by member s bank or credit card issue (including, but not limited to, a renewal of the credit card with an updated expiration date), but not limited to, a renewal of the credit card with an updated expiration date), can result in the AutoPay being rejected and member s access to the clubs being interrupted. Member agrees to provide ISHC with current account information in connection with any accounts or credit cards member designates for use as part of the Auto-Pay program. In the event a monthly electronic deduction is rejected because member s credit card has expired, member authorizes ISHC, as a convenience to member, to use a credit card updater program (or similar program) to reprocess and charge member s designated credit card for the payments due. Member agrees that the expiration or cancellation of member s designated Auto-Pay credit card does not cancel member s membership. Section 3. Late Charge. Dues and balances past due 20 days or more are subject up to an 18% per annum finance charge or $2 each month. Section 4. ISHC shall be entitled to all costs of collection, including attorneys fees, in the event of any default by member of any financial or monetary obligation owing hereunder. Section 5. Payments in Excess of $1,499.00. If this contract requires payment of $1,500 to $2,000, inclusive, including initiation fees or initial fees, Applicant has the right to cancel this contract within twenty (20) days after the contract is signed. If this contract requires payment of $2,001 to $2,500, inclusive, including initiation fees or initial fees, Applicant has the right to cancel this contract within thirty (30) days after the contract is signed. If this contract requires payment of $2,501 to $3,000, inclusive, including initiation fees or initial fees, applicant has the right to cancel this contract within forty-five (45) days after the contract is signed. ARTICL E III: RULES AND REGULATIONS The rules are posted in the clubs, are available at the front desk, or can be found on the website: http://www.inshapeclubs.com. All members agree to and are subject to the following rules and regulations: Section 1. Rules and Policies. In addition to the terms and conditions contained herein, member acknowledges and agrees that member shall be bound by and comply with all rules, regulations and policies established

by ISHC and set forth in the In-Shape Rules and Regulations. ISHC reserves the right in its sole and absolute discretion to amend, modify or cancel any of its rules, regulations and policies and/or adopt additional rules, regulations or policies. Any violation of the rules, regulations, and policies by member may result in the termination of member s contract, in ISHC s sole and absolute discretion. Section 2. Performance. Performance of Services contemplated by this contract shall commence not later than six (6) months from the date this contract is entered into. Section 3. Electronically Scanned Membership Application. ISHC reserves the right to maintain the membership application, and any and all other documents related to member s membership with ISHC in a digital version and the member consents to the use and enforceability of a digital version in all future matters. ARTICL E IV: WAIVER OF CL AIMS ARTICLE IV: WAIVER OF CLAIMS. You hereby acknowledge and agree that use and access by you and/or by your minor children of the premises, facilities, services and equipment of In- Shape Health Clubs, Inc. ( ISHC ) involves a risk of injury to you, your guests and family, whether caused by the actions or negligence of you, someone else, ISHC or its employees, and you assume full responsibility for such risks. In consideration of you and your minor children being permitted to enter any facility of ISHC for any purpose including, but not limited to observation, use of the facilities, services and equipment, and participation in activities, classes or events, you hereby agree to the following: You herby release and hold ISHC, its employee s, officers, directors, shareholders, agents, assigns, representatives, and independent contractors, harmless from all liability to you, your spouse, your domestic partner, your children, heirs, personal representatives and assigns, for any loss of damages of any nature whatsoever, and forever give up and waive any claims or demands therefore on account of bodily, mental or personal injury to you, your minor children or your property, including injury leading to death, whether caused by defective or malfunctioning products or equipment or the active or passive negligence of ISHC, its employees, officers, directors, shareholders, agents, assigns, representatives, independent contractors, members and guests, or otherwise, while you or your minor children are in, upon about the ISHC premises, using any facilities, services or equipment of ISHC, participating in or observing activities, events or classes of ISHC, or providing or receiving training or instruction at ISHC. You also hereby agree to indemnify ISHC, its employees, officers, directors, shareholders, agents, assigns, representatives and independent contractors from any loss, liability, damage or cost any of them may incur due in any way to you or your minor children s presence in, upon or about ISHC s premises or while observing or using any facilities or equipment of ISHC whether caused by your negligence or otherwise. You further agree that ISHC will not be responsible or liable for any loss, theft, or damage to any of your property in or about the premises of ISHC including, but not limited to, any personal property left in a locker or automobile. You further agree that the foregoing

Release & Waiver of Liability, Assumption of Risk and Indemnity Agreement is intended to be as broad and inclusive as is permitted by the laws of California and that if any portion hereof is held invalid, you agree that the balance shall continue in full force and effect. You acknowledge that ISHC has provided you with a Physical Activity Readiness Questionnaire (PAR-Q ) for yourself and each other member listed on the Membership Application. The PAR- Q assists an individual in assessing his or her readiness to engage in physical activities or participate in exercise programs. You agree to provide a PAR-Q to each member listed on the Membership Application. You agree to assume all risks associated a with your failure to accurately complete and follow the guidelines of the PAR-Q and hold ISHC, its employees, officers, directors, shareholders, agents, assigns, representatives, and independent contractors free and harmless of and from any claims, demands, losses or injuries of any kind arising out of your failure to complete and follow the guidelines of the PAR-Q, or to provide PAR-Q forms to each other individual listed on your Membership Application. You further acknowledge that neither ISHC nor any other person or entity operating within ISHC s facilities has provided you with medical information or advice relating to your physical condition or your ability to engage in physical activities or exercise programs. By signing below, you agree that you have read and understand the foregoing Release and Waiver of Liability, Assumption of Risk and Indemnity Agreement, and agree to all of the terms hereof. Warning: Use of steroids to increase strength or growth can cause serious health problems. Steroids can keep teenagers from growing to their full height; they can also cause heart disease, stroke and damage liver function. Men and women using steroids may develop fertility problems, personality changes, and acne. Men can also experience premature balding and development of breast tissue. These health hazards are in addition to the civil and criminal penalties for unauthorized sale, use, or exchange of anabolic steroids. FACILITIES, HOURS, AND AMENITIES Except for all Federal, State and Local holidays, the minimum hours of operation of In-Shape s facilities shall be Monday thru Friday 6:00 am to 7:00 pm, Saturday 9:00 am to 12:00 pm and Sunday closed. Each In-Shape facility offers a variety of weight lifting equipment, free weights, cardio equipment, circuit training equipment, locker rooms, etc. Please refer to In-Shape s website (www. inshapeclubs.com), or see any In-Shape representative to receive a complete listing of all amenities available, and the expanded operational hours (if any) at each of In- Shape s facilities. In-Shape reserves the right to make changes to the facilities, hours of operation and amenities at any of its facilities including, but not limited to, the type or quantity of classes, equipment or services at its facilities. The services to be provided under this agreement commence immediately. Except for all Federal, State and Local holidays, the minimum hours of operation of ISHC s facilities shall be Monday thru Friday 6:00 am to 7:00 pm, Saturday 9:00 am to 12:00 pm and Sunday closed. Each ISHC facility offers a variety of weight lifting equipment, free weights, cardio equipment, circuit training equipment, locker

rooms, etc. Please refer to ISHC s website (www.inshapeclubs.com), or see any ISHC representative to receive a complete listing of all amenities available, and the expanded operational hours (if any) at each of ISHC s facilities. ISHC reserves the right to make changes to the facilities, hours of operation and amenities at any of its facilities including, but not limited to, the type or quantity of classes, equipment or services at its facilities. The length of the term of this agreement is 12 or 36 months based upon the agreement you signed. At the end of the term of this agreement, it automatically renews on a month-to-month basis. I hereby acknowledge that I have read this agreement in its entirety, and understand and agree to all terms and provisions hereof. I further agree to be bound by all rules and regulations of In- Shape Health Clubs (a copy of which I can access via http://www.inshapeclubs.com/membership/rules_and_regulations) which may from time to time be modified or amended. I have read, understand and agree to be bound by the Waiver of Claims included in this document. READ ALL PARTS OF THIS DOCUMENT - IT AFFECTS YOUR LEGAL RIGHTS AND CONTAINS A WAIVER & RELEASE OF ALL CLAIMS.