ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

and Lessor. At Lessor's option, all cash proceeds or equivalent thereof from such warranty
recovery shall be used to repair or replace the Equipment.
7.) Lessee's Inspection. Upon delivery of the Equipment, Lessee shall make all
necessary inspections and tests of the Equipment in order to determine whether the Equipment
conforms to specifications and is in good condition and repair. Lessee shall promptly notify
Lessor in writing of any defect or other proper objection to the type or condition of the
Equipment. If Lessee fails to notify Lessor in writing of any such defect or objection within
seven (7) days after delivery of the Equipment to Lessee, then it shall be conclusively presumed,
as between Lessor and Lessee, that Lessee has fully inspected the Equipment and that Lessee is
satisfied with and has accepted the Equipment in such good condition and repair for all purposes
of this Lease.
8.) Location and Right of Inspection. The Equipment at all times shall be located at
Lessee's Anytime Fitness Express center or such other place as shall be mutually agreed upon in
writing between Lessor and Lessee, and Lessee shall not move the Equipment from such location
without the prior written consent of Lessor. Lessor shall at any and all times during normal
business hours have the right to enter into and upon the premises where the Equipment may be
located for the purpose of inspecting the same or observing its use. Lessee shall promptly advise
Lessor of any circumstances with respect to location which may in any manner affect Lessor's
title thereto.
9.) Use. Lessee shall use the Equipment carefully and shall comply with all laws,
ordinances, or regulations relating to the use, operation, and/or maintenance of the Equipment.
Lessee shall put the Equipment only to the use contemplated by the manufacturer. Lessee shall
affix to the Equipment and maintain thereon such labels, plates, or decals as may be provided by
Lessor, or conspicuously mark said Equipment with such language as Lessor may reasonably
request, to the effect that such Equipment is owned by Lessor. Lessor is hereby authorized at
Lessee's expense to cause this Lease or any financing statement or other statement in respect
thereto, showing the interest of the Lessor in the Equipment, to be filed or recorded with any
governmental office deemed appropriate by Lessor.
10.) Repairs and Alterations. Lessee shall keep and maintain the Equipment in good
working order and shall supply and install all replacement parts and accessories when required to
maintain the Equipment in good working condition, which parts and accessories shall be and
become the sole property of Lessor but also Equipment hereunder. Lessee shall not, without the
prior written consent of Lessor, make any alterations, modifications, additions, subtractions, or
improvements to the Equipment, but if so authorized by Lessor, any such alterations,
modifications, additions, or improvements shall become the property of Lessor and shall be
deemed to be a part of the Equipment.
11.) Licensing, Registration, and Taxes. Lessee shall obtain such licensing and
registration of the Equipment as is or may be required by federal, state, or local law or
regulation. As additional rent, Lessee shall pay and discharge when due, all license and
registration fees, assessments, sales, use, property, and other taxes (excluding any tax measured
by Lessor's net income), together with any penalties or interest applicable thereto, now or
hereafter imposed by any state, federal, or local government upon any item of the Equipment, or
3.