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0 National independent Health Club Association Memorandum of Understanding • This Memorandum of Understanding sets forth the understanding of the parties with regard to amendment of the Leese Agreement between the City of New Brighton and the National Independent Health Club Association ("NIHCA"). NIHCA is interested in expanding its operations and utilizing more space within the Family Service Center, This Memorandum of Understanding, approved by the City Council on March 24, 2009, is in effect unto the New Brighton City Council's consideration of a lease amendment on April 14, 2009. The parties agree to attempt to negotiate a lease amendment In accordance with this MOU. This MOU will be In effect until April 14, 2009. I. FAlanslon of S2@c a. The tenant will occupy additional space within the Family Service Center. The additional space is Room 233 (approximately 244 square feet). 2. Qc cugan y Date of Additlgo sgg a. The landlord grants permission for the tenant to take occupancy of the additional space (Room 233) In the FSC on April 1, 2009 at 8:00 a.m. 3. Rent Paxmerrt a. The tenant will pay rent for the additional space at the same rental rate as stated in the Lease Agreement, (currently $12 per square fool), cormnencing on April 1, 2009 and for as long as the additional space Is leased. The additional room is 244 square feet at $12 per square foot equaling $2,928 annually or $244 per month. This will be added to the tenant's minimum rent under the lease agreement. 4. Rtuirements a. During the term of the MOU, the additional space will be added to the space included in the current lease, and subject to the same terms and conditions set forth In the lease. The lease amendment will provide that Tenant may terminate the lease with respect to the additional space effective May 31, 2009 by giving written notice to landlord prior to May 1, 2009. if no such notice Is given, the additional space will be added to the space included in the current lease and subject to termination and renewal along with the space included In the current lease. b. Ali improvements to the additional lease space (Room 233) will be at tenant's expense (i.e. door sweep, noise control material, etc.). c. Tenant is responsible to pmvfcle its own moving equipment. d. Tenant is responsible for any damage to the facility that occurs during the move. e, Section 2.3 of the lease agreement provides for certain additional consideration related to services by NIHCA and exemption from fees. Landlord has been advised that tenant plans to secure software and services other than those of APEX as specified in section 2.3. The lease amendment shall provide that NIHCA will waive NIHCA fees and will waive fees for any replacement for APEX or reimburse landlord for any fees it is required to pay as additional rent. S. Data (Ph glinterfinet) and Fax Lines a. The landlord wail install data (phoneJintemet) and fax tines as requested by Wednesday, April 1, 2009. Payment for this service Mil be additional rent as provided in section 6.5 of the current lease agreement. If the parties negotiate an agreement for tenant to Iowa computer equipment, payments for such rental shah become additional rent under the lease agreement. 6. Qpartedy Puttee a. Wkh current tenant space of 382.5 square feet plus the additional 244 square feet, a new utility rate of 0.895% will be in effect starting April 1. 2009. This Memorandum of Understanding shall remain in full force and effect until April 14, 2009, and may not be altered, changed, or amended, except by an instrument in writing, signed by all parties hereto. IN WiTtEPS WHEREOF, the parties•hereto have executed this Memorandum of Understanding on this day of 1 , 2009.