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RESIDENTIAL TENANCY AGREEMENT Lease Date ___________________ Between: And: ___________________________ (the Landlord) ___________________________ (the Tenant)

In consideration of the Landlord leasing certain premises at 109 Ember Court in King, North Carolina, to the Tenant, the Tenant agrees to the following terms and obligations set forth in this Lease agreement: Leased Premises 1. The Landlord agrees to rent to the Tenant the house for residential purposes only. Premises will not be used at any time to conduct any business, profession, trade, or illegal activity other than a private single-family residence. 2. Apart from the Tenant, no other persons will live in the Premises. 3. Tenant will not assign, sublet, or grant any concession or license to use the Premises. Such an act will be void and will at Landlords option, terminate this Lease. 4. No pets or animals are allowed on Premises. 5. Only properly insured motor vehicles are allowed on Premises. 6. Tenant will not make improvements to Premises including the following: a. b. c. d. e. Painting, wallpapering, or redecorating that alters the appearance of the Premises. Inserting nails or hooks in walls or ceilings other than existing holes. Removing or adding walls or other structural alterations. Installing a waterbed Changing the amount of power or heat normally used on the Premises or adding electrical wiring of any capacity. f. Placing signs, notices, or advertising on the Premises. g. Erecting any radio or TV antenna. 7. Tenant will be responsible for payment of electricity, water, phone, and cable utilities. TERMS 8. Term of the Lease is for ______ months beginning _______________________ and ending _______________________ at which time the Tenant has the option to re-new Lease for another ___________ month period provided successful completion of property inspection by Landlord. Page 1

9. The rent for the Premises is $625 per month due to the Landlord no later than the first day of each month at ________________________________________________________________. 8. Tenant will be charged an additional $20 per day for any late payments. 9. Landlord may terminate the Lease if the Tenant defaults in rent payment when due on the first day of each month and that amount is still due after a grace period of 5 days. 10. Upon 10 days notice, Landlord may terminate the Lease agreement if Tenant breaches any provision of the Lease. 11. At Lease expiration, Tenant will surrender the Premises in as good a state or condition as it was at commencement of Lease with reasonable use and wear and damages by the elements excepted. SECURITY DEPOSIT 12. On execution of this Lease, the Tenant will pay the Landlord a $350 security deposit which will be returned at end of Lease agreement, less any deductions for damage but no deduction for reasonable wear and tear of Premises. Security deposit may not be used for rent payment. 13. Landlord may charge Tenant or make deductions from the security deposit for any of these: a. Any new nail holes in the walls or repair of existing holes. b. Repainting due to improper use or excessive damage by Tenant c. Unplugging toilets, sinks, or drains. d. Replacing damaged doors, windows, mirrors, light fixtures, appliances, or carpet. e. Cost of pest extermination allowed by Tenant. INSPECTIONS 14. Landlord and Tenant will complete and sign an inspection report at beginning and end of Lease agreement. 15. Landlord may conduct unannounced inspection at any time during the Lease. INSURANCE 16. Landlord is not responsible for insuring Tenants contents and furnishings on Premises for either damage, loss, or theft. 17. Landlord is responsible for insuring the Premises for either damage or loss to the Premises. 18. Tenant is responsible for insuring the Premises for liability insurance for the benefit of Tenant and Landlord and to provide proof of such insurance to the Landlord upon request. MAINTENANCE 19. Tenant will, at its sole expense, keep and maintain the Premises and its appearance and sanitary condition including the maintenance of grass, leaves, and fallen limbs. 20. Tenant will keep fixtures in good order and, at its sole expense, make all required repairs to plumbing or appliances whenever damage is incurred. Page 2

21. Tenant agrees to keep walkway, driveway, patio, and Premises clear, clean, tidy and free of any objectionable material. 22. Tenant will properly notify Landlord of any damage or situation that may significantly interfere with the normal use of the Premises. 23. Tenant and Landlord will comply with standards of health, sanitation, fire, housing, and safety laws. 24. Tenant will not make any noise or nuisance which, in the reasonable opinion of the Landlord, disturbs the comfort or convenience of surrounding residents. 25. Tenant will not keep or have any thing of a dangerous, flammable, or explosive nature that might unreasonably increase the danger of fire on the Premises or considered hazardous by any responsible insurance company. 26. Tenant will professionally steam clean the carpets on a yearly basis and at expiration of the Lease or Landlord may deduct the cost of such services from the security deposit.

In witness whereof, __________________________________ and _______________________________ have duly affixed their signatures on this _______ day of __________________, 2004.

____________________________________________________ (Landlord)

_____________________________ (date)

____________________________________________________ (Tenant)

_____________________________ (date)

The Tenant acknowledges receiving a duplicate copy of this Lease signed by the Tenant and the Landlord on the ________ day of __________________, 2004. ____________________________________________________ (Tenant)

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