Sorry for the dalay, as far as paying to get out of the agreement/contract, it seems as though the provider is trying to protect themselves from potential LE activity and thus could possibly be a legal contract. Do you know if there is a clause regarding non-competition, or breach based on STDS or sex that is not permitted within the four corners of the contract. If so there could be an agreement regarding damages for breach or termination of the contract. Without more specifics, I can't really tell you if I think it is a legal contract and what type of ramifications would set in for breach or termination the contract.
I can tell you that the provider is trying to set up a fire wall by putting in the provisions regading sex and STDS (which seem to contradict each other) and if LE wants to find a way around it, they more than likely can.
I don't know if this is the answer you were looking for, but I hope it helps. Let me know.