BACK OF THE CONTRACT

BACK OF THE CONTRACT

IN 12 POINT FONT

Rev 06/2009

1. Three (3) Day Right of Rescission, in Writing

If the member wishes to no longer remain a member of the Family Sports Center, the member may cancel the contract with a written notice stating the desire to cancel said contract by midnight of the third business day after the day the member signs this contract. The written notice must be delivered, or mailed, to Family Sports Center, Attention Accounting, 1107 Junction Highway, Kerrville, Texas 78028.

2. Twelve (12) Month Minimum, then Automatic Recurring Invoices

It is the policy of Family Sports Center that all membership contracts are for a minimum of twelve (12) months membership & payment prior to any cancellation. Exceptions include “Thirty (30) Day Prepaid Memberships”, “Summer Prepaid Memberships”, cancellation for moving as provided in number four (4) below, death or disability as provided in number five below, & the “Buyout Option” as provided in number three (3) below. Upon completion of the twelve (12) month minimum membership & payment, all membership accounts are automatically transferred to automatic monthly recurring invoices until such time the member presents written cancellation notice in accordance with number four (4) below. Members may submit written cancellation notice on the eleventh (11th) month to take effect immediately following the completion of the twelve (12) month minimum membership & payment requirement.

3. Buyout Option

Members, who wish to end the membership contract prior to the completion of the twelve (12)-month minimum membership & payment requirement, may do so with advanced written notice. A buyout fee will be assessed at the prevailing monthly Maintenance Fee multiplied by the number of months remaining to be paid on the contract.

4. Cancellation Policy: After 12 months and 12 payments, Written Notice Required

Upon completion of twelve (12) months membership & payment, as identified in number two (2) above, if the member wishes to no longer remain a member of the Family Sports Center, the member is required to provide thirty (30) days written notice delivered to the Family Sports Center, Attention Accounting, 1107 Junction Highway, Kerrville, Texas 78028. No telephone calls will be accepted as notice of cancellation. Members are required to bring any account balance to zero including prorated cancellation fees & to return all swipe cards.

5. Death or Disability: Proof Required to Cancel

If the member dies or becomes disabled after the date this contract takes effect, the member or the members’ estate may cancel this contract. Proof of disability or death along with written notice must be mailed to Family Sports Center, Attention Accounting, 1107 Junction Highway, Kerrville, Texas 78028.

6. Non voting Membership

Club membership is non-voting & no rights of ownership are conferred.

7. Changes to billing: In Writing by Month End

All billing changes to members accounts must be received in writing, prior to the last day of the month for the following month, including but not limited to; adding & dropping family members, updating credit card or EFT information, transfer to medical or maintenance freeze. No refunds or credits will be applied due to members’ failure to notify the Club in advance of billing.

Members should notify the Accounting Department immediately of any billing errors.

8. Adding & Dropping Family Members

Members may add their legally married spouses to the membership at any time by completing a Change Form at the Front Desk & paying the month’s prorated prevailing family member dues. The first full month’s dues may also be charged at the time of the addition. The members’ monthly draft will increase accordingly. Children, age twenty one (21) & younger may be added to the membership at the prevailing family member dues rate. There is no charge for children age six (6) and& younger, unless a member has purchased a Just for Kids Club Membership which allows the child to attend two (2) classes each day. In addition, members may drop family members from the membership by completing a Change Form at the Front Desk, no later than the last day of the month to affect next months billing. Any member added to the membership agrees to comply with all Family Sports Center Rules & Regulations. Each contract must maintain a main member at the main member rate. Guest of members is welcome when the member purchases an individual day pass or a 5 day pass for their guests. No guest may work out without membership or day pass payment/receipt.

9. Member Address & Telephone

The member is required to notify the Club of any address & telephone change immediately. This includes any forwarding address in the case of a cancellation for move.

10. Automatic Payment; Terms & Conditions

It is the policy of Family Sports Center to require automatic drafts (in the case a member has not prepaid a minimum of six (6) months membership dues in advance), either from the members’ valid credit card or the members’ valid checking (or savings account where allowed). By signing this contract & not paying a minimum six (6) months in advance, the member is authorizing the Family Sports Center to draft membership dues, past due balances, late fees, service fees, interest, Club charges, & the like to be automatically withdrawn/charged on or about the fifth (5th) of every month or any date thereafter if not successfully paid/drafted on the fifth (5th), for any reason. This authorization remains in effect until the member has given thirty (30) days written cancellation notice & all prorated cancellation fees have been paid. The transactions on the Bank/credit card statement constitute receipt for payment on the account & must be checked monthly by the member. Failure to check bank/credit card statements for Club dues drafts does not entitle a member to a refund or membership credit. The privilege of making payments under this membership agreement contract may be revoked by the Club if any item is not paid upon presentation for any reason, & does not release the member from payment obligation as stated in number two (2) above. Dues & other Club charges may be paid in full prior to the last day of the month to prevent automatic draft. Any remaining balance may be collected at the same time regardless if dues are prepaid prior to the draft date.

By signing this membership contract, the member understands & agrees should there be three (3) incidents of return draft for any reason, in any twelve (12) month period, the membership dues may be increased or the membership account may be terminated & referred to Collections in accordance with number fourteen (14) below, at the discretion of the Club. Change of payment frequency; in the case a member wishes to change the payment frequency a rewritten contract is required to be completed by the Main member. Members may transfer from their current payment frequency to one of the following payment frequencies; monthly draft as described in this contract, prepaid semi annual or prepaid annual. No other payment frequencies are available. No other terms or conditions of the contract change including the completion of a minimum of twelve (12) membership and payment and the cancellation requirements.

11. Contract Default; Right to Demand Full Payment

Should the member default on any payment obligation as called for in this contract, the Club will have the right to declare the entire remaining balance – of the twelve (12) month minimum membership & payment contract - due & payable. By signing this contract, the member agrees to pay allowable interest, late fees, service fees, collection fees, & other fees including but not limited to court costs, & attorney fees. A Default occurs when any payment due or specified on this membership contract, including but not limited to making a minimum of twelve (12) payments, or any payment is more than fourteen (14) days late. At sixty one (61) days past due, accounts are referred to Collections in accordance with number fourteen (14) below.

12. Late fees & Service fees on the fifteenth (15th)

A service fee may be assessed if the Club is unable to collect via automatic draft for any reason. A late fee may be assessed should any monthly payment become more than fourteen (14) days past due. Members accounts may be transferred to a billing freeze if past due balances are not paid by the fifteenth (15) of the month in which they are due and or membership access may be denied until past due balance is paid.

13. Club Charges

All Club charges should be signed by the member upon purchase, immediately. A receipt is available from the Club employee at the time of the charge & members shall retain their copy. Club charges, when allowed, to the members account are subject to automatic draft in accordance with all billing policies described herein this contract Alcoholic beverages may be consumed in the Restaurant and Bowling Center only.

14. Notification of Arrears & Collections at 61 days

Members may be notified via mail or telephone of past due balances beyond fourteen (14) days. An unpaid balance past sixty one (61) days will result in membership termination under the Default clause as stated in number eleven (11) above & the account, along with all applicable fees will be sent to Collections for processing who will seek payment, verify personal assets, & register the members name with Credit Reporting Agencies. Previous members with outstanding past due balances with Family Sports Center whose accounts have been referred to Collections are not welcome to rejoin the Family Sports Center until all accounts have been paid.

15. Membership Dues Increases

The Club reserves the right to increase dues, as it deems necessary or appropriate at any time.

Members may be notified of such increases whenever possible by various means including but not limited to mail outs, signs, banners, brochures, posters, newsletters, emails & the like.

16. Other Club Fees

Membership dues are non-inclusive of services such as kid’s classes, personal trainers, massages, Bowling, food & beverages, retail items, & the like.

17. Initiation Fee

The initiation fee is not a one-time only payment, nor is it subject to refunds, with exception of the three (3) Day Right of Rescission. Should the member discontinue regular monthly payments by default, or cancellation for any reason, any subsequent new membership obtained shall be subject to the prevailing initiation fee.

18. New Member Prorated Dues

New member dues will be prorated from the start of the membership. The first full month’s dues may also be charged at join date. Prorated payments are not considered a full month’s dues when determining the number of payments made on the twelve (12) month minimum requirement. Any exceptions will be at the sole discretion of the Club.

19. Sales Tax

Notwithstanding any other provision of the membership contract, the member understands & agrees the amount of the monthly membership dues is based on current state tax rates & to the extent such tax rates should increase during the membership, the Club has the right to increase the monthly membership dues by the amount of such increase. If the member has requested the privilege of paying membership dues by pre-authorized electronic funds transfer (EFT) or Credit Card (CC), the monthly amount so drafted will be adjusted to reflect any increase in the sales tax rate.

20. Transfer Privilege to New Member

Members may transfer the membership, provided the Club receives a minimum of thirty (30) days written notice of the desire to transfer the membership, & all Club charges, dues, fees, interest & the like are fully paid. The transferee shall execute a new membership agreement contract.

21. Club Relocation

If the Club relocates more than ten (10) miles away from this facility, members may cancel this contract by providing thirty (30) days written notice delivered to the Family Sports Center, Attention Accounting, 1107 Junction Highway, Kerrville, Texas 78028. Members are required to return all swipe cards & bring any account balance to zero including prorated cancellation fees or any other fees in accordance with number four (4) above. No telephone calls will be accepted as notice of cancellation.

22. Club Closure for Out of Business or Inclement Weather

In the case of Club closure due to Out of Business, a member may be entitled to file a claim for a refund of the balance of the Prepaid Membership, against the bond or other security posted by the Club with the Texas Secretary of State. To make a claim, send a copy of the contract together with proof of payments made on the contract to the Texas Secretary of State along with the date of the Club closure. The written notice must be mailed by certified mail to the following address; Office of the Secretary of State, P.O. Box 12887, Statutory Documents Section, Austin, Texas 78711-2887. Family Sports Center reserves the right to close the Club entirely, open late or close early in the case of inclement weather at the sole discretion of the Club.

23. Club Rules, Regulations & Safety Guidelines

The member hereby certifies having read the Rules & Regulations/Safety Guidelines of the Family Sports Center & agrees to comply. The member understands violation of the Rules may cause membership in the Club to be immediately revoked or terminated at the discretion of the Club without refund. The member understands the Club reserves the right, in its discretion, to modify, augment, add, delete, change or revoke any & all Rules, Policies &/or Safety Guidelines, as it deems appropriate in the circumstance & without prior notice. Members may be notified by various means including but not limited to mail outs, posters, signs, brochures, tri-folds, newsletters, emails, & the like. Member understands and agrees the Member/Guarantor/Legal Guardian shall be monetarily & legally responsible for any damage to Family Sports Center facilities, equipment, furniture, fixtures; inside, outside or any other property anywhere on its premises caused by the Member, the Members’ child (ren), the Members’ Guest(s) or the Members’ Invitee(s).

26. Membership Suspension, Termination or Denial of Access

The membership is subject to suspension, termination, or denial of access at the sole discretion of the Club. In the event a member behaves in any manner contrary to the Rules, documented or not, the Club may suspend &/or terminate the membership – without refund - & seek all legal remedies available, including reasonable attorneys fees. The Club reserves the right to deny access to any member, guest, bowler, individual, or group for any reason whatsoever. The Family Sports Center reserves the right to act authoritatively to remedy situations of any type of undesirable or disorderly conduct including arrest, restraining order or other legal action.

27. Services, Classes, Equipment & Bulletin Boards

Club services, classes &/or equipment provided to the member are described in Club literature, available at the Front Desk, are posted in various locations around the Club & are subject to change at the discretion of the Club without prior notice. Circulating, posting, distributing or otherwise disseminating statements, flyers, notices or information of any kind must first be submitted to the General Manager’s Office for consideration of approval.

28. Facility Interruptions due to Lockins, Special Events, Repairs, etc.

The Club reserves the right to utilize & or close any part - or all of its facilities for special parties, tournaments, lock-ins, repairs, maintenance cleaning & the like at any time for as long a period as may be necessary with or without membership notice. Members may be notified of such events whenever possible by various means including but not limited to mail outs, signs, banners, brochures, posters, newsletters, email, & the like.

29. Corporate Memberships

In the case of a Corporate Membership, if the number of members on a Corporate Account falls below the minimum required, the company will be notified & shall have fourteen (14) days to replace the missing memberships. If the Corporate Account fails to replace the missing memberships, all other remaining corporate members’ rates may increase to individual membership rates, at the prevailing new member rate. It is the policy of Family Sports Center to require automatic draft from a Corporations valid checking, savings or credit card account for monthly corporate membership dues in accordance with number ten (10) above. All policies contained herein the membership contract apply to all Corporate Accounts as well as Corporate Members; including but not limited to late & service fees, changes to billing, Automatic Payment Terms & Conditions, Increases, Waivers & Behavior Rules.

30. Medical Freeze, Thirty (30) day Minimum

A medical freeze may be granted at no charge to members upon the Clubs receipt of a signed & dated Doctors Certification thirty (30) days in advance, whenever possible (such as surgery & pregnancy). The signed & dated doctor’s certification must state the anticipated dates the member will not be able to use the facilities. Medical freezes may be granted for a minimum of thirty (30) days. Upon return from medical freeze, an updated, signed, & dated, doctor’s certification must be presented stating the member may return to using the facilities. A twelve (12)-month maximum medical freeze is available. Refunds will not be provided in the case a member fails to notify the Club in advance of billing of the medical freeze. All other financial & contractual obligations apply during the medical freeze

including completion of the twelve (12) month minimum membership & payment requirement, thirty (30) days written cancellation notice, defaults, etc. Rights to Medical Freeze are not related in any way to the three (3) Day Right of Rescission. In the event the Main Member transfers to a Medical Freeze the Family Member is automatically transferred to the Main Members position at the Main Members rate.

31. Maintenance Freeze, Thirty (30) day Minimum

Members may request the entire account (family members included – & required) be transferred to Maintenance Freeze for a maximum of twelve (12) months for travel, business, vacation, or reasons other than medical. All members indicated on the membership account will also be transferred to Maintenance Freeze. A minimum of thirty (30) days notice in advance of billing is required. A per month Maintenance fee will be charged & may be paid in advance, or may be drafted in accordance with number ten (10) above. Maintenance freezes may be granted for a minimum of thirty (30) days. All other financial & contractual obligations apply during the Maintenance Freeze including completion of the twelve (12) month minimum membership & payment requirement, thirty (30) days written cancellation notice, returned drafts, fees, defaults, etc.

Rights to Maintenance Freeze are not related in any way to the three (3) Day Right of Rescission.

32. Waiver of Physical Condition & Illness

The member hereby represents they are in good physical condition & have no illness, disability, impairment, or ailment preventing participation in the Clubs fitness & sports programs. The Club urges every member to have a physical check up before participating in any of the Clubs programs. The member recognizes the risk of injury in any exercise program & is participating upon the express agreement & understanding the member is hereby waiving & releasing the Family Sports Center its officers, directors, shareholders, supervisors, employees, agents, owners & their respective heirs & assigns from & against any & all claims, costs, & liabilities incurred on these premises. Member agrees and understands membership may be suspended or terminated without refund in the case member is using a controlled substance including steroids on Family Sports Center property or otherwise engaged in an illegal activity.

33. Waiver of Liability; Personal Injury or Illness

The member fully releases & discharges the Family Sports Center, including, but not limited to its officers, directors, shareholders, supervisors, employees, agents, owners & their respective heirs & assigns. This waiver of liability includes any & all liability or causes of action a member may have now or may have in the future by reason of injury or illness to the member or others which may occur while on the premises of the Club or any facilities used in connection with the Club. This also includes any injuries resulting from negligence of or by any of the members, guests, bowlers, repair, or other personnel on Club grounds or its premises.

34. Blood/Body Fluids Exposure; Cooperation and Confidentiality

In the case of an accident or incident where others are exposed to my blood or other certain body fluids of mine (or I am exposed to others), I hereby agree to fully cooperate with assigned medical personnel for strictly confidential blood borne or other pathogens’ testing, and confidential interviewing. I understand the confidential results may be received within fifteen (15) days of the accident/incident and shall be shared with only “injured” or “potentially injured” persons, and the conditions resulting from exposure to blood or other potentially infectious materials which may require further treatment or evaluation.

35. Waiver of Liability; Loss of Personal Property, Search and Seizure

The Family Sports Center is not responsible for any lost, damaged, altered, or stolen property belonging to members, members’ guests or invitees, while on or around Club property including but not limited to vehicle, its contents or locker contents. Day-Use-Only lockers are available in the locker rooms. Members may place their own lock on the locker until leaving the Club, daily. Locks left on lockers will be removed at midnight & all property inside shall be subject to Lost & Found. Lost and Found is located at the Front Desk. Family Sports Center reserves the right and may conduct random and unannounced searches of lockers which are company property. In addition, members, bowlers, visitors or guests may be required to submit to random or systematic metal detector searches and personal searches with reasonable suspicion.

36. Youth Waiver; Physical Condition & Behavior

The Legal Guardian/Member accepts full responsibility for, & fully understands the child’s safety, health, & well-being in the voluntary use of the children’s programs at the Family Sports Center is voluntary & instructors, administrators, staff, owners, heirs & assigns assume no responsibility or liability of any kind. The Legal Guardian/Member agrees to support Family Sports Center in encouraging the child complies with all Club Rules, Regulations & Safety Guidelines. Further, the Legal Guardian/Member understands if the child does not comply with Club Rules, Regulations &/& or Safety Guidelines, the Family Sports Center has the right to remove the child from the facility & revoke membership &/or entry to the Club at the sole discretion of the Club. The Legal Guardian/Member understands & agrees they shall be jointly & severally liable for any & all obligations of such minor member (s) hereunder & shall be bound by all terms & conditions of this contract.

37. Final Responsibility

The member hereby agrees & understands the member has final responsibility for this membership contract & agrees the member shall continue to be responsible for payment of all membership dues, prorated cancellation fees, late or service fees, interest & collection agency fees, due under the terms of this membership contract, until the member has successfully cancelled the membership within the terms of this contract in accordance with number four (4) above.

38. Complete Membership Contract

This contract constitutes the entire membership contract between the member & the Club & the member is not relying on any other representation. Family Sports Center reserves the right to change the terms of the contract between the member and Family Sports Center periodically due to business necessity.