RESIDENTIAL LEASE. together with all appurtenances, for a term of, to begin on and to end on at 11:59:p.m.

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1 RESIDENTIAL LEASE By this agreement made on between Marcus M. Thompson and Cindy S. Thompson dba Peruna Partners ( Landlord ) whose address is P.O. Box , Plano, TX 75094, and ( Tenant(s) ) Landlord leases to Tenants the premises situated at, more particularly described as follows: Legal description:lot, Block, Section of the Subdivision of County, Texas. together with all appurtenances, for a term of, to begin on and to end on at 11:59:p.m. 1. RENT. Tenants agree to pay, without demand, to Landlord as rent for the premises $ per month in advance on the 1st day of each calendar month, beginning on at Landlord's preferred address as shown above, or at such other place as Landlord may designate in writing. This total monthly rent amount includes: Base Rent Pet Rent (per Pet Addendum) Lawn Maintenance Fee (per Tenant s election in Paragraph 12) Total Monthly Rent At Tenant s sole option, Tenant may elect to deposit any monthly rent payment directly into Landlord s bank account. If such direct deposit is made on, or prior to, the 1st day of the calendar month for which the rent is due, Tenant may reduce the amount of that payment to $. This option shall be available to Tenant for any month in which Tenant is in full compliance with all other provisions of this lease, with no late fees or returned item fees outstanding. 2. SECURITY DEPOSIT On the execution of this lease, Tenants shall deposit with Landlord $, receipt of which is acknowledged by Landlord, as security for faithful performance of the terms of the lease. The deposit shall be held in a separate account for the benefit of Tenant(s), and it shall be returned to tenant(s), without interest, on full performance of the provisions of this lease. 3. QUIET ENJOYMENT Landlord covenants that, on paying the rent and performing the covenants contained in this lease, Tenants will peacefully and quietly have, hold, and enjoy the premises for the agreed term. Page 1 of 10 Tenant Landlord Date

2 4. USE OF PREMISES The premises shall be used and occupied by Tenants exclusively as a private single family residence, and no part of it may be used by Tenants at any time during the term of this lease for the purpose of carrying on any business, profession, or trade of any kind, or for any purpose other than as a private single family residence. Tenants shall comply with all the sanitary laws, ordinances, rules, and orders of appropriate governmental authorities affecting the cleanliness, occupancy, and preservation of and the sidewalks connected to the premises during the term of this lease. Tenants and all other persons on the premises further must refrain from conducting themselves in any way that would unduly disturb Tenants' neighbors or constitute a breach of the peace. 5. NUMBER OF OCCUPANTS. The premises may be occupied by no more than persons, consisting of adults and children under the age of 18. Additional persons may occupy the premises only with the written consent of Landlord. 6. CONDITION OF PREMISES. Tenants stipulate that the premises have been examined, including the grounds and all buildings and improvements, and that at the time of this lease they are in good order and repair, and in a safe, clean, and tenantable condition. 7. ASSIGNMENT AND SUBLETTING. Without the prior written consent of Landlord, Tenants may not assign the lease or sublet or grant any license to use the premises or any part of them. A consent by Landlord to one assignment, subletting, or license shall not be considered a consent to any subsequent assignment, subletting, or license. An assignment, subletting, or license without the prior written consent of Landlord or an assignment or subletting by operation of law shall be void and, at Landlord's option, may terminate this lease. 8. ALTERATIONS AND IMPROVEMENTS. Tenants may make no alterations to the buildings on the premises or construct any building or make other improvements on the premises without the prior written consent of Landlord. Unless otherwise provided by written agreement between Landlord and Tenants, all alterations, changes, and improvements built, constructed, or placed on the premises by Tenants, with the exception of fixtures removable without damage to the premises and movable personal property, shall be the property of Landlord and remain on the premises at the expiration or termination of this lease. 9. DAMAGE TO PREMISES. If the premises or any part of them is damaged partially by fire or other casualty not due to Tenants' negligence or willful act or that of Tenants' family, agent, or visitor, the premises shall be repaired promptly by Landlord, and there shall be an abatement of rent corresponding to the time during which and the extent to which the premises are uninhabitable; provided that, in the event of damage by fire or other casualty in the amount of more than $10,000, Landlord will have the option of not rebuilding or repairing, in which event the term of this lease shall end, and the rent shall be prorated up to the time of the damage. 10. DANGEROUS MATERIALS. Tenants may not keep on the premises any item of a dangerous, deadly, poisonous, inflammable, or explosive character. 11. UTILITIES. Tenants shall be responsible for arranging and paying for all utility services required on the premises, including but not limited to electricity, gas, water and sewer charges, and garbage and trash collection unless, otherwise stated in writing. Page 2 of 10 Tenant Landlord Date

3 12. MAINTENANCE AND REPAIR. At Tenants expense, Tenants shall keep and maintain the premises and appurtenances in repair and in good and sanitary condition during the term of this lease and any renewal of it. In particular, Tenants shall: a. keep the lawn mowed and trimmed; b. keep the landscaping trimmed neatly and away from the exterior of the house; c. water the lawn at least twice weekly during the months of March through October, and at least once weekly during the months of November through March (excepting those weeks when at least one inch (1 ) of rainfall is recorded at the property); d. keep the fixtures in the house or on or about the premises in good order and repair; e. replace the furnace filter(s) every three months; f. keep the walls free from dirt and debris; g. make all required repairs to the plumbing, cooking, heating, sanitary, and other electric and gas fixtures whenever damage to them has resulted from Tenants' misuse, waste, or neglect or that of his or her family, agent, or visitor; h. not store or stack firewood inside any portion of the premises, including the garage, nor store or stack firewood within 3 feet of any exterior wall of the premises. Major maintenance and repair of the premises involving anticipated or actual costs in excess of $250 per incident not due to Tenants' misuse, waste, or neglect or that of his or her family, agent, or visitor will be the responsibility of Landlord or Landlord's assigns. Tenants agree that no signs will be placed or painting done on, in or about the premises by Tenants or at Tenants direction without the prior written consent of Landlord. 13. LAWN AND LANSCAPE SERVICE Pursuant to Paragraph 12, items (a) and (b) above, Tenant may elect to have the lawn mowed and trimmed bi-weekly during the months of March to November, and landscaping maintained periodically, by Landlord or Landlord s assigns. The charge for this service is $75 per month. Tenant: Initial one: I accept the lawn and landscape maintenance service and agree to the $75 per month fee for that service. I acknowledge that I am still responsible for all other items listed in Paragraph 12. I decline the lawn and landscape maintenance service and agree to perform the lawn care and landscaping maintenance per Paragraph 12, items (a) and (b), in addition to all other items listed in Paragraph ANIMALS. Tenants will keep no domestic or any other animals in, on or about the premises without the written consent of Landlord. If Landlord gives such consent through an attached Pet Addendum, it may be revoked at any time for good cause. 15. INSPECTION OF PREMISES. Landlord and Landlord's agents will have the right at all reasonable times during the term of this lease and any renewal of it to enter the premises for the purpose of inspecting premises and all building and improvements on the premises. 16. DISPLAY OF SIGNS BY LANDLORD. During the last 30 days of this lease, Landlord or Landlord's agent may display "For Sale", "For Rent", For Lease, "Vacancy", or other similar signs on the premises, and may show the property to prospective purchasers or tenants. Page 3 of 10 Tenant Landlord Date

4 17. SUBORDINATION OF LEASE. This lease and Tenants' interest under it are and will be subordinate to any liens or encumbrances now or hereafter placed on the premises by Landlord, all advances made under any such liens or encumbrances, the interest payable on any such liens or encumbrances, and all renewals or extensions of such liens or encumbrances. 18. SURRENDER OF PREMISES. At the expiration of the lease term, Tenants shall surrender the premises clean and in as good condition as they were at the commencement of this lease, reasonable use and wear and tear. Damages by the elements are exceptions 19. DEFAULT. If Tenants fail to comply with any material provision of this lease, other than the covenant to pay rent, or with any present rules and regulations or any that may be hereafter prescribed by Landlord, or if Tenants fail to comply with any material duties imposed on Tenants by statute, Landlord may terminate the lease. If Landlord decides that Tenants should be allowed the opportunity to correct the noncompliance, Landlord may, at Landlord s sole option, deliver a written notice specifying the noncompliance and allowing seven days within which it may be corrected. If compliance is not made, Landlord may then terminate the lease. If Tenants fail to pay rent when due, and the default continues for three days after delivery of written demand by Landlord for payment of the rent or possession of the premises, Landlord may terminate the lease. 20. LATE FEE AND RETURNED ITEM FEE. A late fee of $75 will be charged against the Tenant for delivery of any rental payment which is not made by 5:00 p.m. on the 3 rd day of the calendar month in which it is due. This late fee will be due and payable immediately. A returned item fee of $35 will be charged against Tenant for any checks returned by the bank due to insufficient funds ( NSF ). This returned item fee will be due and payable immediately. BOTH fees will be assessed if payment is made with a check that is returned by the bank due to insufficient funds, and the replacement payment is not made by 5:00 p.m. on the 3 rd day of the calendar month. 21. CHANGE OF LOCKS BY LANDLORD. Upon timely mailing or posting of notice in accordance with section (d)(3) of the Texas Property Code, Landlord shall have the option to change the locks on the doors to the individual unit occupied by Tenant(s) because of the failure of Tenant to timely pay all or part of the rent, late fees, returned item fees, and damage assessments then due and payable in accordance with the terms of this lease. Page 4 of 10 Tenant Landlord Date

5 22. LANDLORD'S LIEN AND ENFORCEMENT THROUGH SEIZURE. TENANTS GRANT LANDLORD A LIEN FOR UNPAID RENT THAT IS DUE, COVERING ALL NONEXEMPT PROPERTY OF TENANTS THAT IS IN THE RESIDENCE. LANDLORD SHALL HAVE THE RIGHT TO SEIZE TENANTS' NONEXEMPT PERSONAL PROPERTY TO SECURE THE PAYMENT OF SUMS DUE UNDER THIS LEASE, IN THE MANNER PROVIDED BY LAW, AND IF LANDLORD SEIZES ANY SUCH PROPERTY, LANDLORD SHALL GIVE NOTICE TO TENANTS, AND TENANTS MAY OBTAIN THE RETURN OF THE PROPERTY, ALL AS PROVIDED IN SECTION OF THE TEXAS PROPERTY CODE. LANDLORD IS ENTITLED TO COLLECT A CHARGE FOR PACKING, REMOVING AND STORING PROPERTY SO SEIZED, AND IF THE PROPERTY IS SOLD, LANDLORD MAY ALSO COLLECT A CHARGE FOR THE COSTS OF SELLING THE PROPERTY. IF TENANTS HAVE NOT PAID ALL DELINQUENT RENT WITHIN 3 (three) DAYS OF RECEIVING THE NOTICE REQUIRED UNDER SECTION OF THE TEXAS PROPERTY CODE, LANDLORD MAY GIVE TENANTS NOTICE OF INTENT TO SELL THE PROPERTY IN THE MANNER PROVIDED IN TEXAS PROPERTY CODE SECTION , AND IF TENANTS FAIL TO REDEEM THE PROPERTY PRIOR TO THE DATE AND TIME OF SALE BY PAYING ALL DELINQUENT RENTS AND FEES, REASONABLE PACKING, MOVING, STORAGE AND SALE COSTS, LANDLORD MAY PROCEED TO SELL THE PROPERTY SO SEIZED, AND ACCOUNT FOR THE SALES PROCEEDS AS REQUIRED BY LAW. ANY PROCEEDS OF THE SALE REMAINING AFTER DEDUCTION OF LAWFUL COSTS AND OFFSETS ENUMERATED ABOVE SHALL BE RETURNED TO TENANTS. Page 5 of 10 Tenant Landlord Date

6 23. Tenants designate the following as the person(s) to contact pursuant to Texas Property Code, Section (a), in the event of Tenants' death, concerning the leased premises: (Name of Designee) (Name of Designee) (Address of Designee) (Address of Designee) (Telephone number of designee) (Telephone number of designee) In the event of Tenants' death, Landlord is further authorized to also a. Grant Tenants' designee access to the premises at a reasonable time and in the presence of Landlord or Landlord's agent; b. Allow Tenants' designee to remove any of Tenants' property found at the leased premises; and c. Refund Tenants security deposit, less lawful deductions, to the designee. 24. LANDLORD LIABILITY AND TENANT REMEDIES; NOTICE AND TIME FOR REPAIR. The parties hereto expressly acknowledge that Chapter 92 of the Texas Property Code contains specific obligations and provides specific remedies, including the following: " LANDLORD LIABILITY AND TENANT REMEDIES; NOTICE AND TIME FOR REPAIR. a. A landlord s liability under this section is subject to Section (b) regarding conditions that are caused by a tenant and Section regarding conditions that are insured casualties b. A landlord is liable to a tenant as provided by this subchapter if i. The tenant has given the landlord notice to repair or remedy a condition by giving that notice to the person to whom or to the place where the tenant s rent is normally paid; ii. the condition materially affects the physical health or safety of an ordinary tenant; iii. the tenant has given the landlord a subsequent written notice to repair or remedy the condition after a reasonable time to repair or remedy the condition following the notice given under Subdivision (1) or the tenant has given the notice under Subdivision (1) by sending that notice by certified mail, return receipt requested, or by registered mail; iv. the landlord has had a reasonable time to repair or remedy the condition after the landlord received the tenant's notice under Subdivision (1) and, if applicable, the tenant's subsequent notice under Subdivision (3); v. the landlord has not made a diligent effort to repair or remedy the conditionafter the landlord received the tenant's notice under Subdivision (1) and, if applicable, the tenant's notice under Subdivision (3); and vi. the tenant was not delinquent in the payment of rent at the time any notice required by this subsection was given. c. For purposes of Subsection (b)(4) or (5), a landlord is considered to have received the tenant's notice when the landlord or the landlord's agent or employee has actually Page 6 of 10 Tenant Landlord Date

7 received the notice or when the United States Postal Service has attempted to deliver the notice to the landlord. d. For purposes of Subsection (b)(3) or (4), in determining whether a period of time is a reasonable time to repair or remedy a condition, there is a rebuttable presumption that seven days is a reasonable time. To rebut that presumption, the date on which the landlord received the tenant's notice, the severity and nature of the condition, and the reasonable availability of materials and labor and of utilities from a utility company must be considered. e. Except as provided in Subsection (f), a tenant to whom a landlord is liable under Subsection (b) of this section may: i. terminate the lease; ii. have the condition repaired or remedied according to Section ; iii. deduct from the tenant's rent, without necessity of judicial action, the cost of the repair or remedy according to Section ; and iv. obtain judicial remedies according to Section f. A tenant who elects to terminate the lease under Subsection (e) is: i. entitled to a pro rata refund of rent from the date of termination or the date the tenant moves out, whichever is later; ii. entitled to deduct the tenant's security deposit from the tenant's rent without necessity of lawsuit or obtain a refund of the tenant's security deposit according to law; and iii. not entitled to the other repair and deduct remedies under Section or the judicial remedies under Subdivisions (1) and (2) of Subsection (a) of Section TENANT'S REPAIR AND DEDUCT REMEDIES. a. If the landlord is liable to the tenant under Section (b), the tenant may have the condition repaired or remedied and may deduct the cost from a subsequent rent payment as provided in this section. b. The tenant s deduction for the cost of the repair or remedy may not exceed the amount of one month's rent under the lease or $500, whichever is greater. However, if the tenant's rent is subsidized in whole or in part by a governmental agency, the deduction limitation of one month's rent shall mean the fair market rent for the dwelling and not the rent that the tenant pays. The fair market rent shall be determined by the governmental agency subsidizing the rent, or in the absence of such a determination, it shall be a reasonable amount of rent under the circumstances. c. Repairs and deductions under this section may be made as often as necessary so long as the total repairs and deductions in any one month do not exceed one month's rent or $500, whichever is greater. d. Repairs under this section may be made only if all of the following requirements are met: i. The landlord has a duty to repair or remedy the condition under Section , and the duty has not been waived in a written lease by the tenant under Subsection (e) or (f) of Section ii. The tenant has given notice to the landlord as required by Section (b)(1), and, if required, a subsequent notice under Section (b)(3), and at least one of those notices states that the tenant intends to repair or remedy the condition. The notice shall also contain a reasonable description of the intended repair or remedy. iii. Any one of the following events has occurred: Page 7 of 10 Tenant Landlord Date

8 A. The landlord has failed to remedy the backup or overflow of raw sewage inside the tenant's dwelling or the flooding from broken pipes or natural drainage inside the dwelling. B. The landlord has expressly or impliedly agreed in the lease to furnish potable water to the tenant's dwelling and the water service to the dwelling has totally ceased. C. The landlord has expressly or impliedly agreed in the lease to furnish heating or cooling equipment; the equipment is producing inadequate heat or cooled air; and the landlord has been notified in writing by the appropriate local housing, building, or health official or other official having jurisdiction that the lack of heat or cooling materially affects the health or safety of an ordinary tenant. D. The landlord has been notified in writing by the appropriate local housing, building, or health official or other official having jurisdiction that the condition materially affects the health or safety of an ordinary tenant. e. If the requirements of Subsection (d) of this section are met, a tenant may i. Have the condition repaired or remedied immediately following the tenant's notice of intent to repair if the condition involves sewage or flooding as referred to in Paragraph (A) of Subdivision (3) of Subsection (d) of this section; ii. Have the condition repaired or remedied if the condition involves a cessation of potable water as referred to in Paragraph (A) of Subdivision (3) of Subsection (d) of this section and if the landlord has failed to repair or remedy the condition within three days following the tenant's delivery of notice of intent to repair; iii. Have the condition repaired or remedied if the condition involves inadequate heat or cooled air as referred to in Paragraph (C) of Subdivision (3) of Subsection (d) of this section and if the landlord has failed to repair the condition within three days after delivery of the tenant's notice of intent to repair; or, iv. Have the condition repaired or remedied if the condition is not covered by Paragraph (A), (B), or (C) of Subdivision (3) of Subsection (d) of this section and involves a condition affecting the physical health or safety of the ordinary tenant as referred to in Paragraph (D) of Subdivision (3) of Subsection (d) of this section and if the landlord has failed to repair or remedy the condition within seven days after delivery of the tenant's notice of intent to repair.. f. Repairs made pursuant to the tenant's notice must be made by a company, contractor, or repairman listed in the yellow or business pages of the telephone directory or in the classified advertising section of a newspaper of the local city, county, or adjacent county at the time of the tenant's notice of intent to repair. Unless the landlord and tenant agree otherwise under Subsection (g) of this section, repairs may not be made by the tenant, the tenant's immediate family, the tenant's employer or employees, or a company in which the tenant has an ownership interest. Repairs may not be made to the foundation or loadbearing structural elements of the building if it contains two or more dwelling units. g. A landlord and a tenant may mutually agree for the tenant to repair or remedy, at the landlord's expense, any condition of the dwelling regardless of whether it materially affects the health or safety of an ordinary tenant. However, the landlord's duty to repair or remedy conditions covered by this subchapter may not be waived except as provided by Subsection (e) or (f) of Section h. Repairs made pursuant to the tenant's notice must be made in compliance with applicable building codes, including a building permit when required. Page 8 of 10 Tenant Landlord Date

9 i. The tenant shall not have authority to contract for labor or materials in excess of what the tenant may deduct under this section. The landlord is not liable to repairmen, contractors, or material suppliers who furnish labor or materials to repair or remedy the condition. A repairman or supplier shall not have a lien for materials or services arising out of repairs contracted for by the tenant under this section. j. When deducting the cost of repairs from the rent payment, the tenant shall furnish the landlord, along with payment of the balance of the rent, a copy of the repair bill and the receipt for its payment. A repair bill and receipt may be the same document.. k. If the landlord repairs or remedies the condition or delivers an affidavit for delay under Section to the tenant after the tenant has contacted a repairman but before the repairman commences work, the landlord shall be liable for the cost incurred by the tenant for the repairman's trip charge, and the tenant may deduct the charge from the tenant's rent as if it were a repair cost. 25. SPECIAL STATUTORY RIGHTS. Tenants may have special statutory rights to terminate the lease early in certain situations involving family violence or a military deployment or transfer. 26. BINDING EFFECT. The covenants and conditions contained in this lease set forth the entire understanding of the parties and shall apply to and bind the heirs, legal representatives, and assigns of the parties to this lease, and all covenants are to be construed as conditions of the lease. No provision of this lease may be altered or terminated by oral agreement. 27. RECOVERY OF COSTS. In any action taken to enforce or interpret this lease, the prevailing party will be entitled to recover all costs and expenses, including court costs and reasonable attorneys' fees. 28. TENANT(S) RIGHT TO PURCHASE. Upon execution of the addendum entitled Tenant s Option To Purchase, Tenant has the option to purchase the entire property from Landlord for the price listed and under the terms stated in that addendum. 29. SURVIVABILITY OF CONTRACT. This agreement shall survive any sale or transfer of the property by the Owner/Agent, and all provisions hereof shall remain binding on Tenant for the duration of the lease period specified herein. Page 9 of 10 Tenant Landlord Date

10 30. RECEIPT OF FUNDS. Landlord acknowledges receipt of the following sums: First Month s Rent $ Security Deposit $ Non-Refundable Pet Deposit $ Other Payment ( ) $ Total Received $ Signed, sealed, and delivered this day,. Tenant Tenant Tenant Tenant Landlord Page 10 of 10 Tenant Landlord Date

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