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ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

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E. Relief. You agree that damages alone cannot adequately compensate us if there is a<br />

violation of these noncompetitive covenants and that injunctive relief is essential for our protection. You<br />

therefore agree that in case of your alleged breach or violation of this Section, we may seek injunctive<br />

relief, in addition to all other remedies that may be available to us at equity or law. In addition, if you<br />

violate the restriction provided for in Section 17.B, the period of time during which the restriction will<br />

remain in effect will be extended until two (2) years after you cease violating the restriction.<br />

18. ENFORCEMENT<br />

A. Injunctive Relief! Attorneys' Fees. We will be entitled, upon posting of a bond to be<br />

determined by a court or arbitrator, but not to exceed One Thousand Dollars ($1,000) to the entry of<br />

temporary restraining orders and temporary and permanent injunctions enforcing the provisions of this<br />

Agreement, and any of our specifications, standards, or operating procedures, or any of your other<br />

obligations to us. If we are successful in obtaining an injunction, or any other judicial relief or order from<br />

an arbitrator against you, or in successfully defending any claim you have brought against us, you will<br />

pay us an amount equal to all of our costs of prosecuting and/or defending the action, including<br />

reasonable attorneys' fees, costs of investigation, court and arbitration costs, and other litigation or<br />

arbitration expenses. Our right to obtain injunctive or other equitable relief is in addition to any other<br />

right we may have under this Agreement and will in no way limit or prohibit us from obtaining money<br />

damages from you if you breach this Agreement.<br />

B. Mediation. Except where either of us believes it is necessary to seek equitable relief to<br />

preserve the goodwill of our respective businesses (including, but not limited to, the enforcement of<br />

obligations upon termination of this Agreement and the covenants not to compete contained in this<br />

Agreement), we each agree to enter into mediation of all disputes involving this Agreement or any other<br />

aspect ofthe relationship between us, for a minimum of four (4) hours, prior to initiating any legal action<br />

or arbitration against the other.<br />

1. Upon written notice by either of us to the other of our desire to mediate, the party<br />

receiving the notice will select an independent entity that provides mediation services to serve as mediator<br />

in the proceeding. If the party receiving the notice of intent to mediate does not name such an<br />

organization within ten (10) days from the date the notice of intention to mediate is received, then the<br />

other party may proceed as ifthis Section 18.B did not exist, or, at its option, make the selection of the<br />

organization to provide mediation services. If one of us selects an organization that is unwilling to serve<br />

as mediator, then the other one of us may select the organization. Once the organization is designated and<br />

agrees to accept the appointment as mediator, the organization will be directed to schedule a mediation<br />

proceeding at a time mutually convenient to us and to you. The mediation will be held within thirty (30)<br />

days following receipt by the mediation organization of notification that its services are requested. If you<br />

and we cannot agree on a date for mediation, then the mediation organization will select a date it believes<br />

is reasonable for both of us, given all ofthe claimed conflicts in dates. The person actually mediating the<br />

dispute will be required to have at least five (5) years of experience as either a franchisee or franchisor (or<br />

as an officer of such an entity) or in franchise law. You and we will equally share the cost of the<br />

mediator. The mediator will select the location for the mediation, but unless we both agree otherwise, the<br />

mediation will be held in a metropolitan area with at least 250,000 persons that is not located within one<br />

hundred (100) miles of either your principal office or our principal office.<br />

2. Except for the matters identified above where you or we are permitted to bring an<br />

action or arbitration without first mediating the dispute, if either party initiates litigation or arbitration<br />

without complying with their obligation to mediate in accordance with this paragraph (unless the other<br />

party has failed to respond on a timely basis or has indicated it will not engage in mediation in accordance<br />

with the provisions of this Section 18.B), then upon petition of whichever of us has a lawsuit or<br />

FA 12/09 22

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