EVELOPER'S COVENANT NOT TO COMPETE15 | | | X. | MISCELLANEOUS 17 | | | XI. | ENFORCEMENT 20 | | | | | |

Exhibits

DEVELOPMENT AREA DEVELOPMENT SCHEDULE

PUNCH KING FITNESS

AREA DEVELOPMENT AGREEMENT

RECITALS

• A. Franchisor has developed and is in the process of further developing a format and system consisting of uniform standards, methods, procedures, and specifications for the operation of Punch King Fitness (the "System") identified by the service mark "Punch King Fitness," and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings, and other commercial symbols as Franchisor may designate to be used (collectively, the "Marks") in connection with, and relating to, the establishment and operation of a business offering A Punch King Fitness franchised business offers HITT boxing and kickboxing training, personal fitness training, nutritional services, and functional fitness training (each, a "Franchised Business");
• B. Franchisor and Developer desire to enter into an area development agreement under which Developer shall obtain the exclusive right to establish and operate a specified number of

Franchised Businesses within a specified geographical area upon the terms and conditions contained in Franchisor's then-current standard franchise agreement (each, a "Franchise Agreement"); and

C. Developer and Franchisor have entered into that certain Franchise Agreement (the "Initial Franchise Agreement") dated the same date as this Agreement for the establishment and operation of the first Franchised Businesses to be developed under this Agreement.

NOW, THEREFORE, for and in consideration of the foregoing promises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

I. GRANT OF DEVELOPMENT RIGHTS AND DEVELOPMENT AREA

Subject to the terms and conditions of this Agreement, Franchisor hereby grants the right to Developer, and Developer undertakes the obligation to establish and operate in the area designated in Exhibit 1 of this Agreement (the "Development Area") the number of Franchised Businesses specified in the development schedule on Exhibit 2 (the "Development Schedule"). This Agreement does not grant Developer any right to use the Marks; the rights to use the Marks are granted only by Franchise Agreements.

II. FEES

The total amount of the Development Fee is listed in Exhibit 2 (the "Development Fee"). The Development Fee will be applied toward the initial franchise fee due under subsequent Franchise Agreements in the manner specified in Exhibit 2. Developer will pay the balance of the initial franchise fee as so stipulated and due under the then Current Franchise Agreement for each Franchised Business at the time the Franchise Agreement for each Franchised Business is executed. The Development Fee will not be refundable, notwithstanding anything to the contrary in this Agreement or any Franchise Agreement.

III. DEVELOPMENT SCHEDULE

Developer must enter into Franchise Agreements and open and operate Punch King Fitness Franchised Business in accordance with the deadlines set forth in the Development Schedule.

Source: Item 22 — CONTRACTS (FDD pages 56–215)