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LICENSE AGREEMENT <br />Date: July I, 2009 <br />Licensor: City of San Marcos, a municipal corporation <br />630 East Hopkins Street <br />San Marcos, Hays County, Texas 78666 <br />Licensee: Walter Erwin <br />Erwin Properties I, L.P. <br />Wally's Party Factory <br />242 N. LBJ <br />San Marcos, Texas 78666 <br />Consideration: Ten and no/100 Dollars and other good and valuable consideration, including the <br />Licensee's performance of its obligations under this agreement. <br />License Area: A 5 foot by 75 foot (375 square foot) area overhanging a same sized strip of land <br />adjacent to the North LBJ Street side of the Licensee's Property overhanging the sidewalk in the <br />described area, and being more fully shown on the attached Exhibit A. <br />Licensee's Property: A 0.303 acre, more or less, portion of Lot 5, Block 20 of the Original Town of <br />San Marcos as described in the deed recorded in Volume 3497, page 485 of the Official Property <br />Records of Hays County, Texas. <br />RECITALS <br />A. The Licensee desires to maintain an Awning on the south side of the existing building on <br />the Licensee's Property for the purpose of providing shade and protection from the elements for <br />clients and pedestrians. The Licensee also wishes to secure the permission of the Licensor to <br />maintain the portion of the Licensee's Awning that encroaches within the License Area. <br />B. The Licensor is willing to grant a license to the Licensee for use of the License Area in <br />accordance with the terms and conditions of this Agreement. <br />AGREEMENT <br />The Licensor, for the consideration, hereby grants and demises to Licensee a non-exclusive <br />license to construct and maintain the Awning upon the License Area, subject to the following: <br />1. Compliance with Standards. The Licensee agrees to comply with all applicable City, <br />state and federal construction and maintenance standards and regulations for the construction and <br />maintenance of the Awning. The Licensee agrees that any future construction will be performed by a <br />licensed contractor who will apply for and obtain all necessary licenses and permits from the City of <br />San Marcos. The Licensee further agrees that no writing will be placed on the Awning prior to <br />obtaining a sign permit from the City. <br />2. Maintenance. The Licensee agrees to maintain the Awning in good condition for the <br />intended purposes, and the Licensee acknowledges that the Licensor is under no obligation to <br />maintain the Awning. <br />1