ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

your Anytime Fitness Center and use it only for the operation of your Anytime Fitness Center. At our
request, you will be required to deliver to us confidentiality agreements and non-compete agreements in a
form satisfactory to us from your owners, the spouses of your owners, and your employees. The scope of
the confidentiality agreements shall be consistent with the provisions of this Section to.A, and the scope
of the noncompete agreements shall be consistent with the provisions of Section 17 of this Agreement.
B. Notwithstanding any provision of Section 10.A, at your discretion, you may allow any
financial institution that has loaned money to you or to your business to have access to your books and
records to confirm your billings, collections, receivables, and any other financial information you have
provided to the financial institution.
C. If you conceive or develop any improvements or additions to the System, new trade
names, trade and service marks or other commercial symbols related to your Anytime Fitness Center, or
any advertising and promotion ideas related to your Anytime Fitness Center ("Improvements"), you will
fully disclose the Improvements to us without disclosure of the Improvements to others, and you will
obtain our written approval before using such Improvements. Any such Improvement that we approve
may be used by us and all our other franchisees without any obligation to pay you royalties or similar
fees. You will assign to us, without charge, any rights, including the right to grant sublicenses to any
such Improvement. We, at our discretion, may make application for and own copyrights, trade names,
trademarks and service marks relating to any such Improvement. We also may consider such
Improvement as our property and trade secret. We will, however, authorize you to use any Improvement
authorized generally for use by our other franchisees.
11. INSURANCE: INDEMNIFICA nON
A. Insurance. You alone will be responsible for any claim, action, loss, damage, liability,
injury or death arising out of, or relating to, the operation of your Anytime Fitness Center or arising out
of, or relating to, your acts or omissions or the acts or omissions of any of your agents, employees or
contractors in connection with the operation of your Anytime Fitness Center. You agree to indemnify and
hold us and our affiliates and our respective officers and directors harmless against and from any and all
such claims, actions, losses, liability, damages, injuries, or deaths, including costs and reasonable
attorneys' fees. You will obtain and maintain in force and pay the premiums for general liability
insurance with complete operations coverage, broad form contractual liability coverage, property damage,
and other insurance in such types as we may require or as required by law from time to time. All such
policies will have minimum limits we may prescribe from time to time, and shall be with carriers who
have minimum ratings that we may prescribe from time to time. Such insurance policies will expressly
protect both you and us and will require the insurer to defend both you and us in any action you will
submit to us, within thirty (30) days of our request, any and all loss ratios or other information we request
in connection with such insurance policies. You will furnish to us a certificate of insurance as set forth
above, naming us as an additional insured, and providing that such policy will not be canceled, amended
or modified except upon thirty (30) days' prior written notice to us. At our request, you will deliver to us
original certificates of insurance and evidence of policy renewals at least thirty (30) business days before
expiration. You will have all policies of insurance provide that the insurance company will have no right
of subrogation against either party hereto or their respective agents or employees. Maintenance of the
insurance requirement will not relieve you of the obligations of indemnification. If you fail to obtain or
maintain in force any insurance as required by this Section or to furnish any certificate of insurance
required hereunder, we may (but have no obligation to), in addition to all other available remedies, obtain
such insurance or certificates, and you will promptly reimburse us for all insurance premiums and other
costs incurred in obtaining such insurance, including an administrative fee for our time in obtaining the
coverage for you. You assume all risks in connection with the adequacy of any insurance or self-
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