VACATION RENTAL AGREEMENT Margaret Rudd & Associates, Inc., Realtors, and its employees shall always act as agents for the Owner (Landlord). Disbursement of Rent and Third Party Fees - Tenant authorizes Agent to disburse up to 50% of the rent to the owner (or as the owner directs) prior to Tenant's occupancy of the Premises and to distribute the balance of the rent upon either commencement of the tenancy, a material breach of the agreement by Tenant, or as otherwise permitted under the Vacation Rental Act. Tenant agrees to pay a $25.00 processing fee for any check of Tenant that may be returned by the financial institution due to insufficient funds or because Tenant did not have an account at the financial institution. Tenant also authorizes Agent to disburse prior to Tenant's occupancy of the Premises any fees owed to third parties to pay for any goods, Services, or benefits procured by agent for the benefit of Tenant, including but not limited to any fees set forth herein payable to Agent for reservation, transfer or cancellation of Tenant's tenancy. Security Deposit - Security Deposit may be applied to actual damages caused by Tenant as permitted under the Tenant Security Deposit Act. In addition, Agent may deduct from the security deposit the amount of any unpaid long distance or per call telephone charges and cable television charges that are not specifically described in this Agreement (including any addendum hereto) as being included with the Premises. Agent shall apply, account for, or refund Tenant's security deposit within 45 days following the end of the tenancy. Trust Account - any advance payment made by Tenant shall be deposited in a trust account with BB&T Bank located at Oak Island., NC. Tenant agrees that any advance payment may be deposited in an interest bearing trust account and that any interest thereon shall accrue for the benefit of, and shall be paid to, the agent. Tenant Duties - Tenant agrees to comply with all obligations imposed by the Vacation Rental Act on Tenant with respect to maintenance of the Premises, including but not limited to keeping the Premises as clean and as safe as the conditions of the Premises permit and causing no unsafe or unsanitary conditions in the common areas and remainder of the Premises that Tenant uses, and notifying agent in writing of the need of replacement of or repairs to a smoke detector, and replacing the batteries as needed during the tenancy. Tenant agrees not to use the Premises for any activity or purpose that violates any criminal law or Governmental regulation. No house parties are allowed. Tenant's breach of any duty contained in this paragraph shall be considered material, and shall result in the termination of Tenant's tenancy. Agent Duties - If at the time Tenant is to begin occupancy of the Premises Agent cannot provide the premises in a fit and habitable condition or substitute a reasonable comparable property in such condition, Agent shall refund to Tenant all payments made by Tenant not previously advanced to owner's account. Agent reserves the right to substitute comparable accommodations if circumstances require. No refunds will be given for breakdown of appliances, or air conditioners, weather or other conditions over which we have no control. Agent shall conduct all brokerage activities in regard to this Agreement without respect to the race, color, religion, sex, national origin, handicap or familial status of any tenant. Transfer of Premises - If the owner voluntarily transfers the Premises, Tenant has the right to enforce this Agreement against the grantee of the Premises. If Tenant's occupancy under this Agreement is to end 180 days or less after the grantee's interest in the Premises is recorded. If Tenant's occupancy is to end more than 180 days after such recordation, Tenant has no right to enforce the terms of this Agreement unless the Grantee agrees in writing to honor this agreement. If the grantee does not honor this agreement, Tenant is entitled to a refund of all advance rent paid by Tenant (and other fees owed to third parties not already lawfully disbursed). Within 10 days after transfer of the Premises, the grantee or the grantee's agent is required to (1) notify Tenant in writing of the transfer of the Premises, the grantee's name and address and the date of the grantee's interest was recorded, and (11) advise Tenant whether Tenant has the right to occupy the Premises subject to the terms of this Agreement or receive a refund of any payments made by Tenant. Upon termination of the owner's interest in the Premises, whether by sale, assignment, death, appointment of a receiver or otherwise, the owner, owner's agent is required to transfer all advance rent paid by Tenant (and other fees owed to third parties not already lawfully disbursed) to the owner's successor-in-interest within 30 days and notify Tenant by mail of such transfer and of the transferee's name and address. However, if Tenant's occupancy under this Agreement is to end more than 180 days after recordation of the interest of the owner's successor-in-interest in the Premises, and the successor-in-interest has not agreed to honor this Agreement., all advance rent paid by Tenant (and other fees owed to third parties not already lawfully disbursed) must be transferred to Tenant within 30 days. If the owner's interest in the Premises is involuntarily transferred prior to Tenant's occupancy of the Premises, the owner is required to refund to Tenant all advance rent paid by Tenant (and other fees owed to third parties not already lawfully disbursed) within 60 days after the transfer. Expedited Eviction- If the tenancy created hereunder is for 30 days or less, the expedited eviction procedures set forth in the Vacation Rental Act will apply. Tenant may be evicted under such procedures. If Tenant (i) holds over in possession after Tenant's tenancy has expired; (ii) commits a material breach of any provision of this Agreement (including any addendum hereto) that according to its terms would result in the termination of Tenant's tenancy, (iii) fails to pay rent as required by this agreement, or (iv) has obtained possession of the Premises by fraud or misrepresentation. Indemnification and Hold Harmless; Right of Entry; Assignment - Tenant agrees to Indemnify and hold harmless Agent and the owner from and against any liability for personal injury or property damage sustained by any person (including Tenant's guests) as a result of any cause, unless caused by the negligent or willful act of agent or the owner, or the failure of Agent or the owner to comply with the Vacation Rental Act. Tenant agrees that Agent, the owner or their respective representatives may enter the Premises during reasonable hours to inspect the Premises to make such repairs, alterations, or improvements, thereto as Agent or owner may deem appropriate, or to show the Premises to prospective purchasers or tenants. Tenant shall not assign this Agreement or sublet the Premises in whole or part without written permission of Agent. Other Terms and Conditions: A. For reservations made more than 15 days in advance of check-in date 56.5% of rental rate and the reservation fee must be paid within15 days of the reservation being made and may be paid with a personal check or Credit Card (Master Card or Visa only). The balance (remaining rent, tax and security deposit) is due 15 days prior to arrival. Personal checks are not accepted at check in. B. Unless otherwise noted, linens, towels, and blankets are not furnished. Pillows are furnished. C. There is a long-distance block in all of our units. If your unit has a phone, please use your credit card, or call collect. Phone numbers with a prefix of 278, 201, 454 and 457 are local calls. All other prefixes are long distance. Margaret Rudd & Associates receives a percentage from the long distance carrier on long distance calls. D. In accordance with Health Department regulations, no more than two persons per bedroom are allowed to occupy a rental unit serviced by a septic tank. Campers and motor homes are not allowed to be occupied or hooked up to any rental property. Pets allowed in pet designated cottages only with required non-refundable pet fee. E. Canadian resident checks must be written on a U.S. affiliated bank and be clearly marked "U.S. FUNDS". CANCELLATION PROCEDURES If a reservation is cancelled for any reason, advance rent will not be refunded, less 20%, unless property is re-rented for the same time period, sufficient payment has been received from the new tenant. Advance rents cannot be transferred to another property. The reservation fee and trip insurance premium are non-refundable. If the premises are not re-rented on the terms set forth herein, Tenant will not be entitled to a refund of any rent payment made hereunder. Whether or not the Premises are re-rented, Tenant, rather than Agent, shall be responsible for seeking reimbursement of any fees paid by Tenant to Agent for goods, services, or benefits procured by Agent from third parties for the benefit of Tenant that may have been paid out prior to Tenant's cancellation. If you fail to arrive, your credit card will be charged for one night's rent plus applicable tax and a $35.00 Reservation Fee. TRIP CANCELLATION/INTERRUPTION INSURANCE Margaret Rudd & Associates is proud to offer trip cancellation/interruption insurance on vacation rentals. The insurance is shown as an option on your Advance Rent Request (your lease). If you do not wish to purchase coverage, initial where indicated on the lease. We highly recommend purchase of this coverage for situations from which you may not recover your vacation financial investment due to illness, accident, death, mandatory evacuations and other insured events. Because we offer insurance, there will be no refund for insurable events if Tenant refused above-mentioned insurance. No insurance refunds will be given at check in. If State or local authorities order a mandatory evacuation of an area that includes the Premises, Tenant shall comply with the order. If you have any questions regarding the insurance, please contact CSA Inc., directly at 1-800-858-5462. Margaret Rudd & Associates receives a commission based on the rental amount from CSA, Inc. CHECK-IN/CHECK-OUT PROCEDURES Check-In is at our 210 Country Club Drive office from 3:00 p.m. until 5:00 p.m., or when unit has been released by our housekeeping staff. Margaret Rudd & Associates reserves the right to delay check-in until 6:00 p.m. for special cleaning and maintenance circumstances. Payments received at check-in must be CASH, CERTIFIED FUNDS, TRAVELER'S CHECKS, VISA OR MASTERCARD. Late Arrivals should call in advance to arrange for a key. THERE IS NEVER A PROMISE OF AN EARLY CHECK-IN. Check-out is prior to 10:00 a.m. All doors and windows should be locked. No guests are allowed to remain on the property after 10:00 a.m. Unless a maid service has been requested, tenant is responsible for thoroughly cleaning the rental unit before checking out. Property will be checked and the security deposit refunded within 45 days of departure. If the unit is not left in satisfactory condition, all expenses incurred to clean the unit will be deducted from the deposit. Margaret Rudd & Associates, Inc., Realtors is not responsible for errors to the brochure and rates are subject to change without notice.