LEASE AGREEMENT EXTENSION

WHEREAS, Resolution 2004-__ authorizes the Kenai Peninsula Borough ("Tenant") to enter into an extension of the existing Lease Agreement ("the Lease") between Tenant and the Estate of Robert L. Plymire, 206 East Pioneer #2, Homer, Alaska 99603 ("Landlord"), dated June 16, 1999, attached hereto and incorporated by reference for the Lease of the property described therein;

WHEREAS, the Tenant and Landlord hereby agree upon rental terms of $950.00 per month, due on the first day of each month, as agreed in the existing Lease Agreement.

NOW, THEREFORE, Tenant and Landlord hereby agree to extend the Lease for a period of one year commencing on July 1, 2004 and ending on June 30, 2005 under the same terms and conditions as contained in the attached Lease except as otherwise provided above.

DATED this _______ day of ____________, 2004.

BY: ______________________________ BY: ________________________

KENAI PENINSULA BOROUGH James M. Plymire

Dale Bagley, Mayor Personal Representative

Estate of Robert L. Plymire,

Landlord

ATTEST: APPROVED AS TO FORM AND LEGAL SUFFICIENCY

BY: ______________________________ BY: ________________________

Linda S. Murphy, Borough Clerk Colette Thompson

Borough Attorney