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2 <br /> <br /> <br /> 1) As consideration for the services provided herein; EF will be compensated as <br />provided in Exhibit A, attached hereto and incorporated by reference. <br /> <br />2) All fixtures and improvements, except equipment furnished by EF, will become <br />part of the Fitness Center and remain with the Fitness Center at the end of this <br />Agreement. <br /> <br />3) Until the City has its membership accounting system in place, EF will keep a <br />separate accounting of all receipts from memberships and program and class fees <br />received at the Fitness Center. EF shall provide accounting records to the City at <br />the City’s request. <br /> <br />Section Two <br />Term of Agreement <br /> <br />2.1 The term of this agreement shall be five (5) years and 39 days, commencing November, <br />23, 2021. Termination shall be effective at the end of the term provided, however, that <br />earlier termination due to uncured defaults may occur as provided in Section Eleven. In <br />addition, the City shall have an annual right to terminate this agreement by providing EF <br />with six months’ written notice of termination. The City may also terminate this <br />agreement if EF is sold to a third party. <br /> <br />2.2 Parties may negotiate renewal terms. Negotiation shall commence prior to one year from <br />the expiration of this agreement. <br /> <br />Section Three <br />Operation of the Fitness Center <br /> <br />3.1 City shall prepare the Fitness Center to allow EF to access it by January 15, 2022 to <br />install equipment. The Fitness Center shall be operational no later than February 1, 2022. <br /> <br />3.2 Subject to the policies and guidelines established by City, EF shall be responsible and <br />have complete authority over the day to day operations of the Fitness Center. EF shall, <br />with the City’s review and approval, determine fitness classes and programming that will <br />be offered. Programming shall include basic fitness classes to be included with facility <br />membership and shall be comparable to existing EF programs set forth in Exhibit B. <br /> <br />3.3 EF’s operational duties and responsibilities shall include, but not be limited to, opening <br />and closing the Fitness Center, hiring, firing and supervising all employees and <br />contractors, acquisition and maintenance of any required licenses, and security. <br /> <br />3.4 EF shall provide for regular cleaning and upkeep of Fitness Center workout areas and <br />equipment, which shall include wiping down of equipment and sweeping out of workout <br />spaces after classes. <br />