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<br />AMENDMENT NO.1 TO <br />DEVELOPMENT INCENTIVE AGREEMENT BETWEEN <br />CITY OF SAN MARCOS AND JSA RETAIL, LLC <br /> <br />This is Amendment No. 1 to the Development Incentive Agreement dated March 22, <br />2006 (the "Agreement") between the City of San Marcos (the "City") and JSA Retail, LLC <br />("JSA Retail"). <br /> <br />1. The City and JSA Retail agree to amend Section 2.02 of the Agreement to read as <br />follows: <br /> <br />Section 2.02. JSA Retail will ensure that the construction of the Building and related <br />facilities is completed on or before January 31, 2007. <br /> <br />2. All remaining terms and conditions of the Agreement shall remain in full force and <br />effect for the duration of the Agreement. <br /> <br />3. By signing this amendment, the parties understand and agree that this amendment <br />shall become a part of the Agreement. <br /> <br />This amendment is executed and effective on September 6,2006. <br /> <br /> <br />JSA Retail, LLC <br /> <br />