ORDER N0.29035 RENEWAL OF COMMERCIAL LEASE FOR THE 216TH ADULT PROBATION OFFICES Came to be heard this the 14th day of February 2005 with a motion made by Commissioner Letz seconded by Commissioner Williams. The Court unanimously approved by a vote of 4-0-0, to have Mr. Holekamp to get with Adult Probation, work on renewal of the commercial lease for their offices, and bring back a recommendation to Commissioners' Court. ~ `~ ~ ~~ COMMISSIONER'S COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF TffiS REOJEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Glenn Holekam~ OFFICE: Facilities Use & Maintenance MEETING DATE: February 14, 2005 TIlbIE PREFERRED: SUBJECT: Consider and discuss renewal of commercial lease for the 216' Adult Probation offices located at 431 Quinlan St. EXECUTIVE SESSION REQUESTED: NAME OF PERSON ADDRESSING THE COURT: Glenn Holekamn ESTIMATED LENGTH OF PRESENTATION: 5 minutes IF PERSONNEL MATTER-NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5 Chapter 551 and 552 Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: @ All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rule Adopted by Commissioner's Court. TE7~A5 ASSOCIATION OF REALTORS® COMMERCIAL LEASE This lease agreement is made and entered into by and between Lori Z. Conger (Landlord) and Kerr County, Texas (Tenant). Landlord hereby leases to Tenant and Tenant hereby leases from Landlord that certain property with the improvements thereon, containing approximately 4000 square feet, hereinafter called the "leased premises," known as 431 Quinlan Street, Kerrville, Kerr County, Texas; or as more particularly described below or on exhibits attached hereto as "Exhibit A" and "Exhibit B" The primary term of this lease shall be three years commencing on the 1st day of October, 2000 and ending at 11:59 p.m. on the 30a' day of September, 2003. This lease is expressly contingent upon the availability of funding for each item and obligation contained herein for the term of the agreement and any extension thereto. In the event that either no funds or insufficient funds are appropriated for the payments due under this lease for the period covered by such budget or appropriation, the lease shall terminate without penalty. This lease includes the following terms, conditions, and covenants: 1 TAXES. Each year during the term of this lease, Landlord shall pay real estate taxes assessed against the leased premises in an amount equal to the total real estate taxes assessed against the leased premises in the base year. Each year during the term of this lease, Tenant shall pay as additional rental, upon receipt of a statement from Landlord together with tax statements or other verification from the proper taxing authority, his pro rata share of any increase in real estate taxes over the base year on the property of which the leased premises is a part. Any increase in real estate taxes for a fractional year shall be prorated. The base year shall be 2 UTILITIES. Tenant shall pay all charges for utility services to the leased premises. 3 HOLDING OVER Failure of Tenant to surrender the leased premises at the expiration of the lease constitutes a holding over which shall be construed as a tenancy from month to month at a rental of $2,400.00 per month. 4 RENT. Tenant agrees to and shall pay Landlord at 312 Morningside, San Antonio, Bexar County, Texas, or at such other place Landlord shall designate from time to time in writing, as rent for the leased premises, the total sum of $86,400.00, payable without demand in equal monthly payments of $2,400.0(1, each in advance on or before the 1st day of each month, commencing on October 1, 2000, and continuing thereafter until the total sum shall be paid. Adjustment to the rent, if any, for rent escalators, for percentage of net rent, or for increases in building operation costs (including but not limited to insurance, custodial services, maintenance and utilities) shall be as set forth in an attached addendum. Rent received after the first day of the month shall be deemed delinquent. If rent is not received by Landlord by the 10ffi of each month, Tenant shall pay a late charge of $25.00 plus a penalty of $5.00 per day until rent is received in full. Tenant shall pay $20.00 for each returned check. USE. Tenant shall use the leased premises for office space and no other purpose. SECURITY DEPOSIT. Tenant has previously paid Landlord a security deposit in the sum of $1,600.00 and Landlord does hereby acknowledge receipt of same. Said sum shall continue to be held by Landlord and considered as a security deposit for this lease for Tenant's faithful performance hereunder. Refund thereof shall be made upon performance of this lease agreement by Tenant, minus any assessments or damages unless Landlord and Tenant provide otherwise in Special Provisions. FIRE & EXTENDED COVERAGE INSURANCE. Landlord shall pay for fire and extended coverage insurance on the buildings and other improvements on the leased premises in an amount not less than $100,000.00, which amount shall be increased yearly in proportion to the increase in market value of the premises. Tenant shall be solely responsible for fue and casualty Insurance on Tenant's personal property on or about the leased prermses. Tenant shall provide Landlord with certificates of insurance evidencing the coverage required herein. Page 1 of 8 PREMISES LIABILITY AND VEHICLE INSURANCE. Under Texas law, Tenant is potentially liable for property damage, personal injury, and death proximately caused by the wrongful act or omission or the negligence of an employee of Tenant acting within his or her scope of employment if the property damage, personal injury or death arises from the operation or use of amotor-driven vehicle or motor-driven equipment and the employee would be personally liable to the claimant according to Texas law. Tenant is potentially liable for personal injury and death caused by a condition or use of tangible personal or real property if Tenant would, were it a private person, be liable to the claimant according to Texas law. Liability of Tenant is limited to money damages in a maximum amount of $100,000 for each person and $300,000 for each single occurrence for bodily injury or death and $100,000 for each single occurrence for injury to or destruction of property. Tenant shall maintain premises liability and vehicle insurance to cover only the property damage, personal injury and death risks as specifically set out, supra. Tenant shall provide Landlord with certificates of insurance evidencing the coverage required herein. If Tenant does not maintain such insurance in full force and effect, Landlord may notify Tenant of such failure and if Tenant does not deliver to Landlord within 10 days after such notice certification showing all such insurance to be in full force and effect, Landlord may at her option, take out the necessary insurance to comply with the provision hereof and pay the premiums on the items specified in such notice, and Tenant covenants thereupon on demand to reimburse and pay Landlord any amount so paid or expended in the payment of the insurance premiums required hereby and specified in the notice, with interest thereon at the rate of 10 percent per annum from the date of such payment by Landlord until repaid by Tenant. 9 CONDITION OF PREMISES. Tenant has examined and accepts the leased premises in its present "as is" condition as suitable for the purposes for which the same are leased and does hereby accept the leased premises regardless of reasonable deterioration between the date of this lease and the date Tenant begins occupying the leased premises unless Landlord and Tenant agree to repairs or refurbishment as noted in Special Provisions. 10 MAINTENANCE AND REPAIRS. Landlord shall keep the foundation, the exterior walls (except glass; windows; doors; door closure devices; window and door frames, molding, locks, and hardware; and interior painting or other treatment of exterior walls), and the roof of the leased premises in good repair except that Landlord shall not be required to make any repairs occasioned by the act or negligence of Tenant, its employees, subtenants, licensees and concessionaires. Tenant is responsible for maintenance of the common area and common area equipment. If Landlord is responsible for any such repair and maintenance, Tenant agrees to give Landlord written notice of needed repairs. Landlord shall make such repairs within a reasonable time. Tenant shall notify Landlord immediately of any premise condition requiring emergency repairs. Tenant shall keep the leased premises in good, clean condition and shall at its sole cost and expense, make all needed repairs and replacements, including replacement of cracked or broken glass, except for repairs and replacements required to be made by Landlord under this section. If any repairs required to be made by Tenant hereunder are not made within ten (10) days after wntten notice delivered to Tenant by Landlord, Landlord may at its option make such repairs without liability to Tenant for any loss or damage which may result by reason of such repairs, and Tenant shall pay to Landlord upon demand as additional rent hereunder the cost of such repairs plus interest. At the termination of this lease, Tenant shall deliver the leased premises in good order and condition, normal wear and tear excepted. Normal wear and tear means deterioration which occurs without negligence, carelessness, accident or abuse. 11 ALTERATIONS. All alterations, additions and improvements, except trade fixtures, installed at expense of Tenant, shall become the property of Landlord and shall remain upon and be surrendered with the leased premises as a part thereof on the termination of this lease. Such alterations, additions and improvements may only be made with the prior written consent of Landlord, which consent shall not be unreasonably withheld. If consent is granted for the making of improvements or alterations to the leased premises, such improvements and alterations shall not commence until Tenant has furnished to Landlord a certificate of insurance showing coverage in an amount satisfactory to Landlord protecting Landlord from liability for injury to any person and damage to any personal property, on or off the leased premises, in connection with the making of such improvements or alterations. The types of damage, loss and the amounts of coverage, as set out in section 8, supra, also apply to the damage and loss listed in this section. No cooling tower, equipment or structure of any kind shall be placed on the roof or elsewhere on the leased premises by Tenant without prior written permission of Landlord. If such permission is granted, such work or installation shall be done at Tenant's expense and in such a manner that the roof shall not be damaged thereby. ff it becomes necessary to remove such cooling tower, equipment or structure temporarily, so that repairs to the roof can be made, Tenant shall promptly remove and reinstall the cooling tower, equipment or structure at Tenant's expense and repair at Tenant's expense any Page 2 of 8 damage resulting from such removal or reinstallation. Upon termination of this lease, Tenant shall remove or cause to be removed finm the roof any such cooling tower, equipment or structure if directed to do so by Landlord. Tenant shall promptly repair at its expense any damages resulting from such removal. At the termination of this lease, Tenant shall deliver the leased premises in good order and condition, natural deterioration only excepted. Any damage caused by the installation or removal or trade fixtures shall be repaired at Tenant's expense prior to the expiration of the lease term. All alterations, improvements, additions and repairs made by Tenant shall be made in good and workmanlike manner. 12 COMPLIANCE WITH LAWS AND REGULATIONS. Tenant shall, at its own expense, comply with all laws, orders and requirements of all governmental entities with reference to the use and occupancy or the leased premises. Tenant and Tenant's agents, employees and invitees shall fully comply with any rules and regulations governing the use of the buildings or other improvements to the leased premises as required by Landlord. Landlord may make reasonable changes in such rules and regulations from time to time as deemed advisable for the safety, care and cleanliness of the leased premises, provided same are in writing and are not in conflict with this lease. 13 ASSIGNMENT AND SUBLETTING. Tenant shall not assign this lease nor sublet the leased premises or any interest therein without first obtaining the written consent of the Landlord, which consent shall not be unreasonably withheld. An assignment or subletting without the written consent of Landlord shall be void and shall, at the option of Landlord, terminate this lease. 14 DESTRUCTION. In the event the leased premises is partially damaged or destroyed or rendered partially uiifit for occupancy by fire or other casualty, Tenant shall give immediate notice to Landlord. Landlord may repair the damage and restore the leased premises to substantially the same condition as immediately prior to the occurrence of the casualty. Such repairs shall be made at Landlord's expense unless due to Tenant's negligence. Landlord shall allow Tenant a fair reduction of rent during the time the leased premises are partially unfit far occupancy. If the leased premises are totally destroyed or deemed by the Landlord to be rendered unfit for occupancy by fue or other casualty, of if Landlord shall decide not to repair or rebuild, this lease shall terminate and the rent shall be paid to the time of such casualty. 15 TENANT DEFAULT AND REMOVAL OF ABANDONED PROPERTY. If Tenant abandons the premises or otherwise defaults in the performance of any obligations or covenants herein, Landlord may enforce the performance of this lease in any manner provided by law. This lease may be terminated at Landlord's discretion if such abandonment or default continues for a period of 10 days after Landlord notifies Tenant of such abandonment or default and of Landlord's intention to declare this lease terminated. Such notice shall be sent by Landlord to Tenant at Tenant's last known address by certified mail. If Tenant has not completely removed Tenant's property or cured the default within the 10-day period, this lease shall terminate. Thereafter, Landlord or its agents shall have the right, without further notice or demand, to enter the leased premises and remove all property without being deemed guilty of trespass and without waiving any other remedies for arrears of rent or breach of covenant. Upon abandonment or default by the Tenant, the remaining unpaid portion of the rental from paragraph 4 herein, shall become due and payable. For purposes of this section, Tenant is presumed to have abandoned the premises if goods, equipment or other property, in an amount substantial enough to indicate a probable intent to abandon the premises, is being or has been removed from the premises and the removal is not within the normal course of Tenant's business. Landlord shall have the right to store any properly of Tenant that remains on premises that are abandoned; and, in addition to Landlord's other nghts, Landlord may dispose of the stored property if Tenant does not claim the property within 60 days after the date the property is stored, provided Landlord delivers by certified mail to Tenant at Tenant's last known address a notice stating that Landlord may dispose of Tenant's property if Tenant does not claim the property within 60 days after the date the property is stored. 16 INTERRUPTION OF UTILITIES. Landlord or Landlord's agent may not interrupt or cause the interruption of utility service paid directly to the utility company by Tenant unless interruption results from bona tide repairs, construction or an emergency. If any utility services furnished by Landlord are interrupted and continue to be interrupted despite the good faith efforts of Landlord to remedy same, Landlord shall not be liable in any respect for damages to the person or property of Tenant or Tenant's employees, agents or guests, and same shall not be construed as grounds for constructive eviction or abatement of rent. Landlord shall use reasonable diligence to repair and remedy such interruption promptly. 17 EXCLUSION OF TENANT. Landlord may not intentionally prevent Tenant from entering Page 3 of 8 the leased premises except by judicial process unless the exclusion results from: (a) bona fide repairs, construction or an emergency; (b) removing the contents of premises abandoned by Tenant; or (c) changing the door locks of Tenant in the event Tenant is delinquent in paying at least part of the rent. If Landlord or Landlord's agent changes the door lock of Tenant, in the event Tenant is delinquent in paying rent, Landlord or Landlord's agent must place a written notice on Tenant's front door stating the name and the address or telephone number of the individual or company from which the new key maybe obtained. The new key is required to be provided only during Tenant's regular business hours. 18 SUBORDINATION. Landlord is hereby irrevocably vested with full power and authority to subordinate this lease to any mortgage, deed of trust or other lien hereafter placed on the demised premises and Tenant agrees on demand to execute such firrther instnunents subordinating this lease as Landlord may request, provided such subordination shall be on the express condition that this lease shall be recognized by the mortgagee, and the rights of Tenant shall remain in full force and effect during the term of this lease so long as Tenant shall continue to perform all of the covenants and conditions of this lease. 19 LIABILITY. Landlord and its employees and agents shall not be liable to Tenant or to Tenant's employees, patrons, visitors, invitees or any other persons for any such injury to any such persons or for damage to personal property caused by an act, omission, or neglect of Tenant or Tenant's agents or of any other Tenant of the premises of which the leased premises is a part. 20 SIGNS. Tenant shall not post or paint any signs at, on or about the leased premises or paint the exterior walls of the building except with the pnor written consent of the Landlord. Landlord shall have the right to remove any sign or signs in order to maintain the leased premises or to make any repairs or alterations thereto. 21 TENANT BANKRUPTCY, If Tenant becomes bankrupt or makes voluntary assignment for the benefit of creditors or if a receiver is appointed for Tenant, Landlord may terminate this lease by giving five (5) days written notice to Tenant of Landlord's intention to do so. 22 CONDEMNATION. If the whole or any substantial part of the leased premises is taken for any public or quasi-public use under any governmental law, ordinance or regulation or by right of eminent domain or should the leased premises be sold to a condemning authority under threat of condemnation, this lease shall terminate and the rent shall be abated during the unexpired portion of the lease effective from the date of the physical taking of the leased premises. 23 HAZARDOUS MATERIALS. Landlord warrants and represents that the Property does not contain "Hazardous Materials", as that phrase is defined herein. For purposes of this provision, the phrase "Hazardous Materials" shall mean and include any toxic contaminated or other hazardous materials including, without limitation, asbestos, PCB> transformers, underground storage containers, materials containing any radioactive substances, petroleum base products, paints, solvents, lead, cyanide, DDT, acids, pesticides, ammonium compounds and any other substance forming a component part of the improvements which has heretofore or may in the folio a be determined to contain toxic wastes, hazardous materials or undesireable substances injurious to the health of occupants living or working in or around the subject Property. Landlord acknowledges that current and firture federal, state and local laws and regulations may require the clean up of any such Hazardous Materials at the expense of those persons who in the past, present or future may have had or continue to have any interest in the Property including, but not limited to, current, past and future owners and users, including Tenants, of the Property. The cost and expense of such clean up may be substantial. Landlord fiuther acknowledges that the real estate Brokers and their agents involved in the negotiation of this transaction have no expertise with respect to any such Hazardous Materials. Landlord acknowledges and agrees that Landlord shall look solely to experts and professionals selected by Landlord to advise Landlord with respect to the condition of the Property and shall not hold the real estate Brokers or their agents responsible for any Hazardous Material condition or problem relating to the Property. Landlord hereby agrees to indemnify, defend and hold the real estate Brokers and their agents participating in this transaction harmless of and from any and all liability, claim, debt, damage, cost or expense, including reasonable attorneys' fees, related to or arising out of or in any way connected to Hazardous Materials and/or toxic wastes and/or any other undesirable substances affecting the Property. 24 BROKER'S FEE. Coldwell Banker, Ron Ime18t Associates, Broker, has negotiated this lease and Landlord agrees to pay Broker in Kerr County, Texas, upon commencement of this lease, a negotiated fee of 6 % of the total rental provided for in this lease. Tenant warrants that it has had no dealings with arty real estate broker or agents in connection with the negotiation of this lease Page 4 of 8 excepting only Ron Imel and it knows of no other real estate broker or agent who is entitled to a commission in connection with this Lease. 25 NOTICES. Notices to Tenant shall be by certified mail or other delivery to the leased premises or to Tenant's last known address. Notices to Landlord shall be by certified mail to the place where rent is payable. 26 DEFAULT BY LANDLORD. In the event of breach by Landlord of arty covenant, warranty, term or obligation of this lcase, then Landlord's failure to cure same or commence a good faith effort to cure same within 10 days after written notice thereof by Tenant shall be considered a default and shall entitle Tenant either to terminate this lease or cure the default and make the necessary repairs and any expense incurred by Tenant shall he reimbursed by the Landlord after reasonable notice of the repairs and expenses mcwred. 27 SIGNS. During the last 30 days of this lease, a "For Sale" sign and/or a "For Lease" sign may be displayed on the leased premises and the leased pt~emises may be shown at reasonable times to prospective purchasers or Tenants. 28 RIGHT OF ENTRY. Landlord shall have the right during normal business hours to enter the demised premises; (a) to inspect the general condition and state of repair thereof, (b) to make repairs required or permitted under this lease, or (c) for any other reasonable purpose. Z9 WAIVER OF BREACH. The waiver by Landlord of arty breach of any provision of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or a different provision of this lease. 30 TIME OF ESSENCE. Time is expressly declared to be of the essence in this lease. 31 BINDING OF HEIRS AND ASSIGNS. Subject to the provisions of this lease pertaining to assignment of the Tenant's interest, all provisions of this lease shall extend to and bind, or more to the benefit not only of the parties to this lease but to each and every one of the heirs, executors, representatives, successors and assigns of Landlord or Tenant. 32 RIGHTS AND REMEDIES CUMULATIVE. The rights and remedies by this lease agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have bylaw, statute, ordinance or otherwise. 33 TEXAS LAW TO APPLY. This agreement shall be construed under and in accordance with the laws of the State of Texas. 34 LEGAL CONSTRUCTION. In case any one or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof and this agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 35 PRIOR AGREEMENTS SUPERCEDED. This agreement constitutes the sole and only agreement of the parties to this lease and supersedes any prior understandings or written or oral agreements between the parties respecting the subject matter of this lease. 36 AMENDMENT. No amendment, modification or alteration of the tetras hereof shall be binding unless it is in writing, dated subsequent to the date hereof and duly executed by the parties. 37 ATTORNEYS' FEES. Any signatory to this lease agreement who is the prevailing party in any legal proceeding against any other signatory brought under or with relation to this lease agreement or this transaction shall be additionally entitled to recover court costs, reasonable attorney fees and all other out-of-pocket costs of litigation, including deposition, travel and witness costs from the nonprevailing party. Page 5 of 8 38 SPECIAL PROVISIONS. (This section to include additional factual data not included above.) THE TEXAS ASSOCIATION OF REALTORS AND The Kerrville Board of Realtors DO NOT FIX, CONTROL, RECOMMEND, SUGGEST OR MAINTAIN COMI'IISSION RATES OR FEES FOR SERVICES TO BE RENDERED BY THEIR MEMBERS OR THE DIVISION OF COMMISSIONS OR FEES BETWEEN COOPERATING PARTICIPANTS OR BETWEEN PARTICIPANTS AND NON-PARTICIPANTS. THE AMOUNT OF COMPENSATION AND THE CONTRACT TERMS HEREIN ARE NOT PRESCRIBED BY LAW AND ARE SUBJECT TO NEGOTIATION BETWEEN BROKER AND SUBLESSOR. THIS IS A LEGAL DOCUMENT. READ IT CAREFULLY. IF YOU DO NOT UNDERSTAND THE EFFECT OF ANY PART OF THIS AGREEMENT, SEEK COMPETENT LEGAL ADVICE. EXECUTED this: _~f~ day of ~ ~ , 200 ~ ANT OR TENANTS~~GNATURE(S) ADDRESS LANDLORD'S SIGNATURE ADDRESS f3a- ~S~Z- 22/~ TELEPHONE BROKER SIGNATURE By: AGENT SIGNATURE ADDRESS TELEPHONE TELEPHONE (NOTE: This fovn is furnished by the Texas Association of REALTORS for the convenience of its members.] Page6of8 Being a 0.41 acre (17,753 sq. ft.) lot, tract, or parcel of land out of Block No. 58 in the Schreiner Addition of the City of Kerrville, Kerr County, Texas; being out of the J. C. Hays Survey No. 117, Abstract No. 182; also being the northeasterly portion of the 0.75 acre tract of land conveyed to LORI ANN ZIEGLER from THAD M. ZIEGLER and wife, PATSY B. ZIEGLER, by Warranty Deeds dated December 20, 1973 and January 15, 1974 and recorded in Volume 7269, Page 371, and Volume 7269, Page 373, of the Deed Records of Kerr County, Texas and being more fully described as follows: BEGINNING at a'/2 inch diameter iron pin at the east corner of the herein described 0.41 acre tract, being also the east corner of the 0.75 acre Ziegler tract, and said to be on the southeast line of the J. C. Hayes Survey No. 117 and located 1701.53 feet N. 45° E. from the south corner of the Hayes Survey; THENCE N. 45 ° 00' W. a distance of 199.97 feet along the northeast line of the 0.75 acre Ziegler tract to an iron pin for the north corner of the herein described tract, such iron pin being the north corner of the 0.75 acre Ziegler tract and lying in the southeast right-of--way line of Quinlan Street (a public street); THENCE 5. 44° 57' W. a distance of 88.80 feet along the southeast right-of--way line of Quinlan Street and the northwest line of Block No. 58 to an iron pin for a comer; THENCE S. 44° 59' E. a distance of 199.74 feet crossing the 0.75 acre Ziegler tract to an iron pin for a south corner; THENCE N. 45° 06' E. a distance of 88.86 feet along the southeast line of the 0.75 acre Ziegler tract to the POINT OF BEGINNING. EXI-IIBIT A Page 7 of 8 b M M ~d .~ u L` iRtJi~~ii1~ 1 ~,i J..t.PsLi.~L`r THIS Alai 1'~I~11~'~N'~` T{3 I.E~iS~ ("Ameadment"} is made to be effective as of October 1, ZIl46, ("Efafe~ctive bate"} beiween L{)~i ~. ~[I~T~ER, saccess4r in interest to Thad M. Ziegler ~"I.audlord"} and Kt~ RR COiTN'1'Y t"Tenax~t"1. Il4iTR.€333+vCTlO~ irv~1~.F.AS, Thad 1v1. Ziegler, as Landlord, and Kerr County, as Tenant, entered into a Commercial Lease dated September Ig9? {"Lease"} covering those certain uremises camnaonly known as 43 t Q~uir-lan , Kerrvalle, Texas, and '~'~HlERl1~, by Assignmert :,f Lease ("Assigr~ient"} d€~te€D .Ta~r~ua~ 1, 199, Thad Sri. Ziegler assigned all of his righht, title and interest in the Lease to Lori ,Z. C:ouger, which Assignrr~esrt and Lease are recorded in 'Volume 9'97, Pages 240 et seq., of the Qfficial Public RecBrds of Real Property of Kerr County, Texas, xeference to the terms of the Assignment and Lease being hereby made fax aIi purposes a,s if set forth in full herein; and 't~THE "~, Landtocd and Tenant desire to ar,~ertd tte Lease, as prn~ided ~ael€~w. AGRI;I{;iVI.ElM1T: 1~TO~V, T'HERI;Ff]RF., in consideration of Ten and l~Ivflf#(1 Dollars {$10.~C~}, and tither good and uahle consideration, the receipt anal suffac:v~tcy of which are hereof acknawlcdged, La^.d:vrd ar~d Tenant agree as follcv~-s: I. Ttncorporatiou o€ Recitals. Landlord and Tenant hereby incorporate the provisions of the Introduetifln set forth above. lack term not otherwise defined in this Amendment shall have the meaning set forth in the Lease. ?. Ax~mea~slmen! of ease. Landlord and Te ;out hereby agree that the Lease shall be atuEnded as fa)~ows: (a} Term. The second Paragraph on page oz~e r~fthe Lease is hereby amended as follows: "The terrn of this Lease shall be three (31 years commencing an the 15C day c-f Uctober, 2!}06, and ending an the ~~'~ day of Septerazber, 21109, erpon the fQ>,~os~ing terms, eanclitioas and covet~uts," (b1 Rent. Paragraph ~ of the Lease is hereby amended as follows: "Tenant agrees and shad pay to Landlord at 1? Longsford, San Antonio, 13exar County, Texas 7$2{19, ar at such other place as Landlord: shall designate from time t4 time in writiczg, as rent for the leased premises, the total sum of $g8,914.~00, payable without demand on ar >aefQre the. l~ day of each month, eommex~cing on Q-ctober 1, 20~, and coAtinuing thereafter until the total sum shx,ll be paid as fallow~s: Bates i (111f[~}6 - 9II107 l Of 1147 - 9111{18 i of~ ~©s - ~~ilos Anxendment to f.ease Page 1 ~Unt ~~IIt ~Byltt ~t[e $2,40t?.DO $2,992.SE} J lent received aver the first day of the month shall be deemed etelinquent. if rent is not received by Landlord I}y the 10~ day of each rncmth, Tenant shall pay a Tate charge of ~I4t?.00 pies a ' penatty of $25.OQ per day urrtil rent is received in fult. Tenant shat.! pay $`25.OQ for each re#tarned check.°' ~cj Ia~~rsr~e€. ~~lithiss ten. ~i{I) days foL'owing execution of this ~nex~e~xt, Tenant ~igrees to provide to Landtora the ceri~cafte of insurance as required in paragrapf~ 7 of the I.,ease. (d} Holdover. Paragraph 3 of the Lease is hereby amended as follows: "Failure of Tenant to s~.er the leased premises at the expiratioxt of #le Leap eons~t~.tes a balding ar.~er v~~hich shall by cowed as a tenancy from montt-~ tc3 m:t~nth at a rental of one hdred ~;reaty eve pt:€aez~t {125°!0) 4f the rent in effect ou the test day of the Term.:' {e) Broker. The provisions of paragraph 24 of the Lease, which relates to tirokesage, is not applicable and is deleted in its e~irety from the Lease. 3. Rote~"rcation a+f Lease.. The *~ertns and conditions of the Lease ~~ rnodif ed herein.} are hereby ratif ed and awned by Landicrrd and Tenant 4. minding Effect. All of the terms and conditions set Earth in this Ameudrnent shall be binding upon and inure to the benefit of the parties hereto and ttseir ex~tors, administrators, successors ar assigns. l~ 4t~ITI'~LS~ ~l[I~P~OI~, tl~e parties hereto gave caaseci this Amendment Ea be executed as of the Effective tube. LANI~LORft: TENANT: ]Kl;-ice ~4?L~~ ~2- vt_.~~ By: LORI Z. CQIYGF.R RTart'ie: Title: ,,~ ^~.; .~-~~:t ins G.~-~''~ ~ ~ ~~~%S~~r~~ ~.ar~eackaenk #o Lease Page 2 F:tL;~ie~stC~gtriP~crrviAe Bu~tUng T~iPL4aEt~at to i e:~5e.Guls$~r.~i.~oc