2007 VACATION RENTAL LEASE AGREEMENT

Corolla Classic Vacations                       Reservation #

                                                            Resort Home:

Date:                                                    Address:

                                                            Arrival Date:

GUEST:                                                Departure Date:

                                                            Max. Occupancy:

Guest Home Phone

Your charges are as follows in US Funds:                             

About your resort home:

Rent                                                    ***

Security Deposit

Other Charges***                            

Taxes**                                              

Total                                                   

*Initial & Deduct to Decline Insurance___________       

*Initial Payment

                                    Balance due 30 days prior to arrival

                                       Or Certified Funds required         

* *NOTE: Guest's decision with respect to the purchase of Trip Insurance will affect your rights in the event of a mandatory evacuation. See paragraph 5 on reverse.

**Tax rates are calculated as of the time of this Agreement. Guest shall be responsible for payment of all applicable taxes according to rates in effect at the time of occupancy.

INITIAL PAYMENT DUE:

This is a Vacation Rental Agreement under the North Carolina Vacation Rental Act (VRA). The rights and obligations of the parties to this agreement are defined by law and include unique provisions permitting the disbursement of rent prior to tenancy and expedited eviction of tenants. Your signature on this agreement, or payment of money or taking possession of the property after receipt of the agreement, is evidence of your acceptance of the agreement and your intent to use this property for a vacation rental.

Return of the signed lease with an advance payment of 50% of base rent, plus Trip Insurance, if desired, is due within 10 days of making reservation or reservation will be cancelled without notice. Personal checks and credit cards (see paragraph 7 on reverse) are accepted at this time. In accordance with the VRA, up to 50% of the rent may be disbursed to the Owner, the Agent or other appropriate party prior to your occupancy. The balance of rent, including deposits, taxes, fees and other charges are due 30 days prior to your check-in. No personal checks will be accepted at check-in or less than 30 days prior to check-in. There will be a $25 charge for returned checks. If Balance is not received 30 days prior to check-in, this Lease is subject to cancellation. In such event, Agent will attempt to re-rent the property for the rental period. Your rights to receive a refund of any rental payments will be governed by Paragraph 4 of this Lease. The remaining balance of rental payment including deposits, fees and other charges will be disbursed to Owner, Agent or other appropriate party at the beginning of your occupancy period, a material breach of this Agreement by Tenant, or as otherwise permitted by the VRA. Guest also authorizes Agent to disburse prior to Guest's occupancy any fees owed to third parties to pay for any goods, services or benefits procured by Agent for the benefit of Guests, including but not limited to any fees set forth herein payable to Agent for reservation, transfer or cancellation of Guest's tenancy. All rental payments shall be deposited in a trust account with Gateway Bank located in Kitty Hawk, NC. Tenant agrees that any rental 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 Corolla Classic Vacations as it accrues and as often as is permitted by the terms of the account.

Corolla Classic Vacations (Agent) is the property manager of your vacation home. The owner of the property has given the Agent the authority to enter into this agreement. This document sets forth the terms under which you will lease your vacation home through Agent. Agent conducts all activities in regard to this agreement without respect to the race, color, religion, sex, national origin, and handicap or familial status of the guest or any other party to this agreement.

____________________________________          __________     

Guest Signature-Leasholder-Tenant                      Date                  

_________________________________________

Agent for Corolla Classic Vacations          

Mail signed Lease Agreement to Corolla Classic Vacations and Retain one copy of Lease Agreement for your records

Corolla Classic Vacations, PO Box 3, 1196 Ocean Trail, Corolla, NC 27927  252-453-9660; 866-453-9660 (Toll Free)

TERMS OF YOUR LEASE AGREEMENT

1.Check-in/Check-Out: : Normal check-in time (without exception) is 4:00 p.m. and checkout time is prior to 10:00 a.m. Agent uses its best efforts to have your home ready for you at check-in time, but cannot guarantee the exact time of occupancy. In the event that a guest returns to property, or does not leave property, after checkout time, a charge equal to the rental rate for 1 day will be assessed.

2. Accommodations: are individually and privately owned, reflecting the tastes of its owner. Homes are supplied with grills. Moving grill's location and/or neglecting to clean grill after use, may subject you to deduction in security deposit. Substitutions and refunds will not be made for any reason. Agent will not be held responsible for any changes made by owners. RV/Mobile campers are not permitted. Gas fireplaces are not available June 1 through September 15.

3. Pools/Spas: Homes with private pools and/or hot tubs will be cleaned and chemically adjusted on home's scheduled check-in day. You may request additional cleaning during the week for an additional charge. Hot tubs are closed January 1 through March 1 and are available to you for a fee.

4 Cancellations: must be submitted in writing. Every effort is made to rebook the home. If and when the home is re-booked and new monies confirmed, your monies will be refunded LESS the following: cancellation fee and its taxes, credit card convenience fee and its taxes(if applicable) and trip insurance (if applicable). In the event the home does not rebook, all monies are forfeited, excluding security deposit or TLC Fee. Any change in reservations such as changing weeks or changing homes will be subject to the cancellation policy. No assignment or subletting permitted. Trip insurance is highly recommended to protect against unexpected events. (Questions call Travel Guard at 1-866-221-8080. Refer to product #004770.)

5. Evacuation:  Guest shall comply with State or local authorities' order of a mandatory evacuation. Upon compliance, Guest will not be entitled to a refund of the prorated rent for each night Guest is unable to occupy the home from Agent or Owner if the guest refused insurance offered by the Agent that would have compensated guests for losses or damages resulting from loss of use of the property due to the evacuation order; or the Guest purchased insurance offered by Agent. This is pursuant to Senate Bill 974, G.S. 42A-36. You may elect to purchase Trip Cancellation and Interruption Insurance, underwritten by the National Union Fire Insurance Company of Pittsburgh, Pa., by paying the stated premium. Agent receives a fee from this insurance. Terms, conditions and limitations are written on the enclosed Description of Coverage; please read them carefully.

6.  Indemnification; Right of Entry; Assignment: Guest (and guests of Guest) agrees to indemnify and save individual Homeowners, Agent and its employees, free and harmless for any liabilities or any loss or damage whatsoever arising from, related to, or in connection with rental of the premises, including but not limited to any claim or liability for personal injury or damage or loss of property which is made, incurred or sustained by Guest (including but not limited to injury sustained as a result of use of spa, hot tub, whirlpool, sauna or pool) except any caused by the willfully or intentionally negligent acts of the Owner or his Agent. Guest agrees that Agent, the owner or their respective representative may enter the premises during reasonable hours to inspect, make repairs or improvement thereto as Agent or Owner may deem appropriate, or to show the premises to prospective purchasers. Tenant shall not assign this Agreement or sublet the premises in whole or in part.

7. Credit Card Convenience Fee: We accept credit cards for an additional non-refundable 3% (plue state tax) convenience fee.

8. TLC Fee: This is an optional fee; if you do not choose to purchase it, a security deposit is required. TLC Fee protects you from losses or damages to real or personal property of the homeowner's property during your tenancy, up to value of home's security deposit. TLC Fee does not cover negligence or willful and wanton conduct. This TLC Fee and related taxes are non-refundable and are not covered by Trip Cancellation & Interruption Insurance. There are homeowners who choose not to offer this optional fee, in which case you will pay the security deposit.

9. Security Deposits: A refundable security/cleaning deposit is required on all homes in which the leaseholder has not purchased the TLC Fee Option. You are responsible for, and agree to pay all charges for, any loss or damage to your vacation home or its contents, normal wear and tear excepted, during your tenancy. All funds held for security deposit will be held and disbursed according to the North Carolina Tenant Security Deposit Act. After your occupancy, the home is inspected to determine if any loss or damage, including additional cleaning, has been suffered. Agent may deduct from security deposit any long distance or per-call telephone charges and per-use cable television charges. Please be sure to read our information binder at the home. Agent shall apply, account for, or refund Guest's security deposit within 45 days following the end of tenancy.

10. Transfer of property by Owner:  In accordance with the VRA, if the landlord transfers the property to another and your vacation rental will end 180 days or less after recordation, your vacation rental will be enforced. If the rental ends more than 180 days after recordation, the rental may not be enforceable and all payments will be refunded to you. Each guest will be notified of any transfer and their rights will be explained at that time. If Owner's interest in property is involuntarily transferred, the Owner is required to refund to Guest all rent paid by guests within 60 days after the transfer.

11. Pets: Unless otherwise specifically permitted in this Agreement, no pets shall be allowed on (inside or outside) the premises. If your home allows pets, you may bring up to 2 pets with a weight limit of 75 lbs each. No pets allowed on furniture or in pools or hot tubs. Guest's breach of this provision shall be considered material, and shall result in the termination of the Guest's tenancy. Proper clean up after your pet is required to avoid deduction from security deposit.

12. Guest Responsibilities:  Guest agrees to comply with all obligations imposed by the Vacation Rental Act on Guest with respect to maintenance of the home, including but not limited to keeping the home as clean and safe as the conditions of the home permit and causing no unsafe or unsanitary conditions in the common areas and remainder of the premises that guest uses; 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. Guest agrees not to use the home for any activity or purpose that violates any criminal law or governmental regulation. Guest agrees that occupancy is restricted to family groups only and to the number of occupants as noted on front of lease. Leaseholder must be at least 24 years of age. Rental for weddings, to fraternities, sororities, school, church or civic groups is strictly prohibited. Guest's breach of any duty contained in this paragraph shall be considered material, and shall result in the termination of guest's tenancy.

13. Agent Responsibilities: Agent agrees to provide the premises in a fit and habitable condition. If, at the time you are to begin occupancy of the premises, agent cannot provide the premises in a fit and habitable condition or substitute a reasonably comparable property in such condition, Agent shall refund to you all payments made by you. Should your home sustain a failure of a system or amenity, including but not limited to water, septic, heat pump, electrical, mechanical, pool, hot tub, whirlpool tub, or electronics, the problem will be corrected as soon as humanly possible. Priorities are given to water/sewer, electric/plumbing, and air conditioning/heating, however no recompense will be made. Agent or authorized employee or repairman and landlord have the right of entry at any reasonable time.

14. Subdivision and Property Associations: Agent is not responsible for conduct or operations of subdivisions and property associations and cannot be held liable for any loss or liability in connection with either.

15. Forum: This agreement shall be governed by and interpreted in accordance with the law of the State of North Carolina. This agreement shall be treated as though it was executed in the County of Currituck, State of North Carolina, and was to have been performed in the County of Currituck, State of North Carolina. Any action relating to this agreement shall only be instituted and prosecuted in courts in North Carolina. Guest specifically consents to such jurisdiction and to extraterritorial service of process. Should any of the terms of this agreement be breached by tenant resulting in legal action on the part with Agent against Guest and Agent prevails in court or a settlement is reached, Agent shall be entitled to collect from Tenant all costs of said legal action including, but not limited to, attorney's fees.

16. Thank you for choosing Corolla Classic Vacations and for your kind regard to all terms of this agreement

COROLLA CLASSIC VACATIONS   -  COROLLA, NORTH CAROLINA