ADDENDUM TO RESIDENTIAL RENTAL CONTRACT

Blue Heron will inspect your property in three months and then quarterly if necessary, based on the results of your inspections. Landlord will contact you in advance with the date of inspection.

In order to keep property neat and well maintained, tenant MUST obtain approval before storing any items -- outdoor furniture, grills, toys, tools, etc. outside of rental unit.

Tenant must have carpet professionally shampooed at end of lease, prior to departure.

No satellite dishes are allowed on premises.

Tenant is responsible for paying a flat $50/month fee for water.

Return trashcan to appropriate spot behind back steps on Monday afternoon/evening after trash pickup. Failure to keep trash can in appropriate spot will result in a $10 fine. This is to help keep things easy for our lawn maintenance crew.

No vehicles allowed on premises without current registration and inspection -- no abandoned vehicles allowed.

The septic systems on site are small and will only accommodate water usage by tenants. This is why most of the homes have only 1 to 3 tenants per unit. Therefore, NEVER allow outside friends, family and guests to use washing machine in your unit.

Parking is limited to 2 vehicles per unit. Park only on your gravel driveway. DO NOT park on the grass around your unit. There are septic drain lines underground around your homes. Vehicles will crush the lines, causing extensive and expensive damage. Persons parking in the grass will receive one warning. Vehicles parked in the grass after that point will be towed at the owner’s expense.

NO dogs, cats, or birds are allowed as pets inside or outside homes. Any other pets will be considered on an individual basis. If we determine that you have a pet without permission, we will give you 24 hours to remove it permanently or will consider you in violation of your lease and will ask you to move.

We occasionally receive complaints about noise, loud music, parties late at night, and vehicles with loud speakers coming into the property when families are sleeping, etc. We will only give you one notice about

this type of complaint. In the event of a second complaint, we will ask you to move.

New tenants have the option of keeping appliances (washers/dryers/microwaves) left behind by previous tenants (if the tenant does not wish to take them with them). However, we will not be responsible for the maintenance or removal of these appliances in the event that they break. We will remove any unwanted appliances left behind by previous tenants at the time of move-in only. We will not remove them at a later date.

Tenants are responsible for paying for any maintenance issues that they cause (pouring grease down drains, flushing inappropriate objects down toilets such as tampon applicators, failing to maintain heating/air units properly, etc.). Routine maintenance will generally be covered by Blue Heron Developers. For questions about what is or is not covered, please ask us.

Do not leave trash anywhere outside your unit other than your trash can. If you have large items that need to be disposed of, please either contact the appropriate waste company to see if they will take it, or dispose of it properly. The landlord is not responsible for removing your trash/unwanted items.

Please do not pour grease down drains or flush anything other than toilet paper down toilets.

Towels, sheets, blankets, flags and other window coverings are not permitted in windows. Blinds only may be visible from the outside of your unit.

Smoking is limited to the outside of your unit only.

Water softeners may be provided for your convenience, but will not be maintained by Blue Heron Developers.

Please be reminded that only persons listed on your lease are authorized to live in your unit. Occasional overnight guests are permitted, but no one not listed on your lease may live in your property. If we receive complaints about noise or unauthorized parking, you will receive one warning, and then be asked to vacate the property.

Tenants must give a written 30-day notice when they plan to vacate the property. The landlord will be considered notified on the date the notice is received (date email was sent, date stamped on envelope, etc.), NOT THE DATE ON THE NOTICE! If the tenant vacates the

property before the date he has stated he will, the tenant will still be expected to continue to pay rent as per the lease.If a tenant breaches his/her rental contract in any way (i.e. harboring animals without permission, repeatedly violating parking rules, harboring unauthorized persons in unit, etc.), the landlord may take immediate possession of the property, the security deposit is forfeited and the tenant must continue to pay rent until the property is re-rented, or until the original lease term has expired.

Tenants must clean the property upon moving out. Please see the attached move-out guidelines for instructions on what is expected upon vacating the property. If the property is not cleaned upon move-out, the tenant will be charged according to the move-out guidelines.

There are multiple ways to submit a payment to us. Our company accepts the following methods of payment:

- Personal/certified check or money order- Cash (must be delivered in person; please do not send cash via mail)- Direct deposit/allotment (contact us for our banking information)- Credit/debit card (please be advised that there is a 1.64% tax added to all credit/debit card payments)

If you pay with a check, and it is returned due to non-sufficient funds, or for any other reason, you will be charged $25.00 by Blue Heron Developers, Inc. We bank with Branch Banking & Trust, who also typically charges an additional $25.00 processing fee for returned checks. Your financial institution may charge additional fees as well. It will cost you a minimum of $50.00 if you bounce a check, so please be mindful of this when paying with a check.

Tenants may submit their payments by mail or in person. Please be reminded that it is not the landlord's responsibility to pick up your rent. If the landlord is available to pick up your rent, he/she may schedule a time to pick it up. If not, it is the tenant's responsibility to submit payment on time to avoid a late fee. For any further questions about payment matters, please refer to the lease agreement or contact us.

TENANT: LANDLORD:

Date: Date:

RENTAL RULES, REGULATIONS, AND GUIDELINES

AGENCY RELATIONSHIP DISCLOSURE: The tenant acknowledges that the property manager is an agent of the landlord and therefore a fiduciary/principal relationship exists between the landlord and agent. However, the agent is still required to treat any tenant in accordance with the law and REALTOR Code of Ethics.

PROPERTY CONDITION: Unless noted in the Rental Contract, the tenant accepts and receives the property in "as is" condition as of the date of signing the rental contract. No additional cleaning or maintenance will be performed on the property beyond needed mechanical and structural repairs. A Move-in/Move-Out will be provided to you prior to occupying the property for your review and corrections. The report must be returned within five (5) days of occupancy. IF YOU FAIL TO RETURN THE REPORT, THE ORIGINAL REPORT WILL BE USED TO DETERMINE ANY DAMAGES UPON VACANCY.

KEY POLICY: The tenant will receive a key to the primary entrance door. Locks are generally not changed between tenants unless the previous tenants were evicted or did not return keys. Locks can be changed at the tenant's request and expense. If you should change your own locks, a key must be provided to the property manager. If you fail to provide a key, a locksmith will be called to provide a key at the tenant's expense.

REPAIR POLICY: Call the rental company to report or request all needed repairs. Mechanical and structural repairs will be repaired as soon as possible. Cosmetic repairs will be performed at the Landlord's option. Repairs due to normal wear and tear are the Landlord's responsibility and expense. Damages caused by the tenant's abuse of the property beyond normal wear and tear will be repaired at the tenant's expense. Any cost for repair requests that result in "no repair needed" will be at the tenant's expense.

PAYMENT POLICY: Rental payments can be made in cash, check or money order. All checks must be made payable to BLUE HERON DEVELOPERS. DO NOT MAIL CASH. Your payment must be received by the date indicated in the rental contract to avoid late fee. Mail your payment to: 6425 Sentry Oaks Drive, Wilmington, NC 28409.

INFESTATION POLICY: Unless otherwise noted, the landlord is not responsible for treatment of any infestation by insects, bugs, rodents, or other creatures.

IMPROVEMENTS TO THE PROPERTY: The rental contract provides that the tenant may not make improvements to the building without written permission of the Landlord or his agent. If you paint a room or perform other repairs or improvements to the property without permission, this can be considered damaged when you vacate.

FUSE/CIRCUIT BREAKERS: It is the tenant's repsonsibility to replace broken fuses and to reset tripped circuit breakers. Tripped circuit breakers are reset by turning to off and then back on. If the circuit breaker continues to "trip" it may be due to overloading the circuit. If it continues to trip when the circuit is not in use, please call the office for a repair. Replace fuses with the same amperes (size) as the blown fuse. Larger amp fuses can cause damage to the fuse box and create a fire hazard. If you are unable or unwilling to replace a fuse, a repair call can be requested at the tenant's expense. If a repair results in a fuse replacement or resetting of a breaker, the tenant will be responsible for the expense.

YARD MAINTENANCE: In the event you rent a property with a yard, the tenant is responsible for all yard care, unless the landlord or an association is performing it. Yard care includes, but is not specifically limited to, grass cutting, leaf collection and bush trimming to prevent house or other property damage and maintain the appearance of the property. The landlord reserves the right to have yard and plants maintained at the tenant's expense if not being performed by the tenant.

FIREPLACE/CHIMNEY: The tenant is responsible for cleaning the chimney and fireplace. If an accredited chimney sweep or other inspector determines the fireplace is not safe, it will be repaired.

LIGHTBULBS: The landlord does not provide light bulbs. DO NOT place more than a 60watt bulb in

any ceiling fixture and certainly not a higher wattage than recommended by the fixture.

HEATING/COOLING: Depending on the system, there is only minor tenant maintenance required of your heating/cooling systems. However, most systems do have air filters that require changing or cleaning on a periodic basis. Most systems will operate more efficiently with clean air filters. Air filter should be replace or cleaned every 30 days at the minimum.

Failure to change air filters or to maintain an air filter in the system can and will most likely cause damage to the system. The repair company easily determines damage as a result of dirty or missing air filters. The expense of repair damage as a result of this action will be the responsibilty of the tenant.

Fuel source systems (gas/oil/kerosene) can also be damaged if the tank is allowed to become empty during use, usually clogging fuel filters or nozzles within the unit. If the tenant allow this to happen, the repair will be at the tenant's expense and, once again, is easily determined by the repair company. If your system fails to come on, please check circuit breakers/fuses. If the system still fails to operate, please call the office to initiate a repair.

SMOKE DETECTORS/ALARMS: NC LAW (1/1996) requires landlords to install smoke detectors in all residential rental units. North Carolina General Statutes 42-42 specify that the landlord shall place new batteries in any battery-operated smoke detector at the beginning of the initial term of tenancy. During the tenancy, the tenant is responsible for battery replacement. The landlord will replace/repair the smoke detector upon receiving written notice from the tenant of its failure during the tenancy.

LATE NOTICES: If you fail to pay your rent as outlined in the rental contract, you will receive a late notice providing ten (10) days to make such payment. If you fail to pay rent on or before the date agreed upon in the contract on a regular basis, you can expect to receive a late notice on a regular basis. In accordance with NC Law, the ten-day period begins from the date of the notice, NOT when it is received. Landlords do not like late payments. If your rent is not received within the terms of the rental agreement and late notice, you will be evicted. If you are unable to pay the rent as agreed, it is better to communicate with the property manager so that, perhaps, an agreeable payment method can be established that month. If you do not receive mail at the property address, it is your responsibility to notify the rental company. IF YOU BECOME A HABITUAL LATE PAYER, YOU CAN EXPECT TO RECEIVE A LATE NOTICE DATED THE FIRST OF EACH MONTH.

Repairs to be made:

________________________________________________________________________________________________________________________________________________________________________________________________

I have read and accept these rules and regulations.

_______________________ _____________________________Date Date

__________________________________ ____________________________________Tenant Landlord

__________________________________ ____________________________________Tenant Blue Heron Developers, Inc.

ADDENDUM TO RESIDENTIAL RENTAL CONTRACT

Blue Heron will inspect your property in three months and then quarterly if necessary, based on the results of your inspections. Landlord will contact you in advance with the date of inspection.

In order to keep property neat and well maintained, tenant MUST obtain approval before storing any items -- outdoor furniture, grills, toys, tools, etc. outside of rental unit.

Tenant must have carpet professionally shampooed at end of lease, prior to departure.

No satellite dishes are allowed on premises.

Tenant is responsible for paying a flat $50/month fee for water.

Return trashcan to appropriate spot behind back steps on Monday afternoon/evening after trash pickup. Failure to keep trash can in appropriate spot will result in a $10 fine. This is to help keep things easy for our lawn maintenance crew.

No vehicles allowed on premises without current registration and inspection -- no abandoned vehicles allowed.

The septic systems on site are small and will only accommodate water usage by tenants. This is why most of the homes have only 1 to 3 tenants per unit. Therefore, NEVER allow outside friends, family and guests to use washing machine in your unit.

Parking is limited to 2 vehicles per unit. Park only on your gravel driveway. DO NOT park on the grass around your unit. There are septic drain lines underground around your homes. Vehicles will crush the lines, causing extensive and expensive damage. Persons parking in the grass will receive one warning. Vehicles parked in the grass after that point will be towed at the owner’s expense.

NO dogs, cats, or birds are allowed as pets inside or outside homes. Any other pets will be considered on an individual basis. If we determine that you have a pet without permission, we will give you 24 hours to remove it permanently or will consider you in violation of your lease and will ask you to move.

We occasionally receive complaints about noise, loud music, parties late at night, and vehicles with loud speakers coming into the property when families are sleeping, etc. We will only give you one notice about

this type of complaint. In the event of a second complaint, we will ask you to move.

New tenants have the option of keeping appliances (washers/dryers/microwaves) left behind by previous tenants (if the tenant does not wish to take them with them). However, we will not be responsible for the maintenance or removal of these appliances in the event that they break. We will remove any unwanted appliances left behind by previous tenants at the time of move-in only. We will not remove them at a later date.

Tenants are responsible for paying for any maintenance issues that they cause (pouring grease down drains, flushing inappropriate objects down toilets such as tampon applicators, failing to maintain heating/air units properly, etc.). Routine maintenance will generally be covered by Blue Heron Developers. For questions about what is or is not covered, please ask us.

Do not leave trash anywhere outside your unit other than your trash can. If you have large items that need to be disposed of, please either contact the appropriate waste company to see if they will take it, or dispose of it properly. The landlord is not responsible for removing your trash/unwanted items.

Please do not pour grease down drains or flush anything other than toilet paper down toilets.

Towels, sheets, blankets, flags and other window coverings are not permitted in windows. Blinds only may be visible from the outside of your unit.

Smoking is limited to the outside of your unit only.

Water softeners may be provided for your convenience, but will not be maintained by Blue Heron Developers.

Please be reminded that only persons listed on your lease are authorized to live in your unit. Occasional overnight guests are permitted, but no one not listed on your lease may live in your property. If we receive complaints about noise or unauthorized parking, you will receive one warning, and then be asked to vacate the property.

Tenants must give a written 30-day notice when they plan to vacate the property. The landlord will be considered notified on the date the notice is received (date email was sent, date stamped on envelope, etc.), NOT THE DATE ON THE NOTICE! If the tenant vacates the

property before the date he has stated he will, the tenant will still be expected to continue to pay rent as per the lease.If a tenant breaches his/her rental contract in any way (i.e. harboring animals without permission, repeatedly violating parking rules, harboring unauthorized persons in unit, etc.), the landlord may take immediate possession of the property, the security deposit is forfeited and the tenant must continue to pay rent until the property is re-rented, or until the original lease term has expired.

Tenants must clean the property upon moving out. Please see the attached move-out guidelines for instructions on what is expected upon vacating the property. If the property is not cleaned upon move-out, the tenant will be charged according to the move-out guidelines.

There are multiple ways to submit a payment to us. Our company accepts the following methods of payment:

- Personal/certified check or money order- Cash (must be delivered in person; please do not send cash via mail)- Direct deposit/allotment (contact us for our banking information)- Credit/debit card (please be advised that there is a 1.64% tax added to all credit/debit card payments)

If you pay with a check, and it is returned due to non-sufficient funds, or for any other reason, you will be charged $25.00 by Blue Heron Developers, Inc. We bank with Branch Banking & Trust, who also typically charges an additional $25.00 processing fee for returned checks. Your financial institution may charge additional fees as well. It will cost you a minimum of $50.00 if you bounce a check, so please be mindful of this when paying with a check.

Tenants may submit their payments by mail or in person. Please be reminded that it is not the landlord's responsibility to pick up your rent. If the landlord is available to pick up your rent, he/she may schedule a time to pick it up. If not, it is the tenant's responsibility to submit payment on time to avoid a late fee. For any further questions about payment matters, please refer to the lease agreement or contact us.

TENANT: LANDLORD:

Date: Date:

RENTAL RULES, REGULATIONS, AND GUIDELINES

AGENCY RELATIONSHIP DISCLOSURE: The tenant acknowledges that the property manager is an agent of the landlord and therefore a fiduciary/principal relationship exists between the landlord and agent. However, the agent is still required to treat any tenant in accordance with the law and REALTOR Code of Ethics.

PROPERTY CONDITION: Unless noted in the Rental Contract, the tenant accepts and receives the property in "as is" condition as of the date of signing the rental contract. No additional cleaning or maintenance will be performed on the property beyond needed mechanical and structural repairs. A Move-in/Move-Out will be provided to you prior to occupying the property for your review and corrections. The report must be returned within five (5) days of occupancy. IF YOU FAIL TO RETURN THE REPORT, THE ORIGINAL REPORT WILL BE USED TO DETERMINE ANY DAMAGES UPON VACANCY.

KEY POLICY: The tenant will receive a key to the primary entrance door. Locks are generally not changed between tenants unless the previous tenants were evicted or did not return keys. Locks can be changed at the tenant's request and expense. If you should change your own locks, a key must be provided to the property manager. If you fail to provide a key, a locksmith will be called to provide a key at the tenant's expense.

REPAIR POLICY: Call the rental company to report or request all needed repairs. Mechanical and structural repairs will be repaired as soon as possible. Cosmetic repairs will be performed at the Landlord's option. Repairs due to normal wear and tear are the Landlord's responsibility and expense. Damages caused by the tenant's abuse of the property beyond normal wear and tear will be repaired at the tenant's expense. Any cost for repair requests that result in "no repair needed" will be at the tenant's expense.

PAYMENT POLICY: Rental payments can be made in cash, check or money order. All checks must be made payable to BLUE HERON DEVELOPERS. DO NOT MAIL CASH. Your payment must be received by the date indicated in the rental contract to avoid late fee. Mail your payment to: 6425 Sentry Oaks Drive, Wilmington, NC 28409.

INFESTATION POLICY: Unless otherwise noted, the landlord is not responsible for treatment of any infestation by insects, bugs, rodents, or other creatures.

IMPROVEMENTS TO THE PROPERTY: The rental contract provides that the tenant may not make improvements to the building without written permission of the Landlord or his agent. If you paint a room or perform other repairs or improvements to the property without permission, this can be considered damaged when you vacate.

FUSE/CIRCUIT BREAKERS: It is the tenant's repsonsibility to replace broken fuses and to reset tripped circuit breakers. Tripped circuit breakers are reset by turning to off and then back on. If the circuit breaker continues to "trip" it may be due to overloading the circuit. If it continues to trip when the circuit is not in use, please call the office for a repair. Replace fuses with the same amperes (size) as the blown fuse. Larger amp fuses can cause damage to the fuse box and create a fire hazard. If you are unable or unwilling to replace a fuse, a repair call can be requested at the tenant's expense. If a repair results in a fuse replacement or resetting of a breaker, the tenant will be responsible for the expense.

YARD MAINTENANCE: In the event you rent a property with a yard, the tenant is responsible for all yard care, unless the landlord or an association is performing it. Yard care includes, but is not specifically limited to, grass cutting, leaf collection and bush trimming to prevent house or other property damage and maintain the appearance of the property. The landlord reserves the right to have yard and plants maintained at the tenant's expense if not being performed by the tenant.

FIREPLACE/CHIMNEY: The tenant is responsible for cleaning the chimney and fireplace. If an accredited chimney sweep or other inspector determines the fireplace is not safe, it will be repaired.

LIGHTBULBS: The landlord does not provide light bulbs. DO NOT place more than a 60watt bulb in

any ceiling fixture and certainly not a higher wattage than recommended by the fixture.

HEATING/COOLING: Depending on the system, there is only minor tenant maintenance required of your heating/cooling systems. However, most systems do have air filters that require changing or cleaning on a periodic basis. Most systems will operate more efficiently with clean air filters. Air filter should be replace or cleaned every 30 days at the minimum.

Failure to change air filters or to maintain an air filter in the system can and will most likely cause damage to the system. The repair company easily determines damage as a result of dirty or missing air filters. The expense of repair damage as a result of this action will be the responsibilty of the tenant.

Fuel source systems (gas/oil/kerosene) can also be damaged if the tank is allowed to become empty during use, usually clogging fuel filters or nozzles within the unit. If the tenant allow this to happen, the repair will be at the tenant's expense and, once again, is easily determined by the repair company. If your system fails to come on, please check circuit breakers/fuses. If the system still fails to operate, please call the office to initiate a repair.

SMOKE DETECTORS/ALARMS: NC LAW (1/1996) requires landlords to install smoke detectors in all residential rental units. North Carolina General Statutes 42-42 specify that the landlord shall place new batteries in any battery-operated smoke detector at the beginning of the initial term of tenancy. During the tenancy, the tenant is responsible for battery replacement. The landlord will replace/repair the smoke detector upon receiving written notice from the tenant of its failure during the tenancy.

LATE NOTICES: If you fail to pay your rent as outlined in the rental contract, you will receive a late notice providing ten (10) days to make such payment. If you fail to pay rent on or before the date agreed upon in the contract on a regular basis, you can expect to receive a late notice on a regular basis. In accordance with NC Law, the ten-day period begins from the date of the notice, NOT when it is received. Landlords do not like late payments. If your rent is not received within the terms of the rental agreement and late notice, you will be evicted. If you are unable to pay the rent as agreed, it is better to communicate with the property manager so that, perhaps, an agreeable payment method can be established that month. If you do not receive mail at the property address, it is your responsibility to notify the rental company. IF YOU BECOME A HABITUAL LATE PAYER, YOU CAN EXPECT TO RECEIVE A LATE NOTICE DATED THE FIRST OF EACH MONTH.

Repairs to be made:

________________________________________________________________________________________________________________________________________________________________________________________________

I have read and accept these rules and regulations.

_______________________ _____________________________Date Date

__________________________________ ____________________________________Tenant Landlord

__________________________________ ____________________________________Tenant Blue Heron Developers, Inc.

UTILITY INFORMATION SHEET

ELECTRIC COMPANY

ONSLOW COUNTY

JONES-ONSLOW ELECTRIC 1-910-353-1940

CARTERET COUNTY

PROGRESS ENERGY CAROLINAS 1-800-452-2777

TELEPHONE COMPANY LOCAL SERVICE

SPRINT 1-910-347-9011

WATER COMPANY

ONSLOW COUNTY

ONSLOW COUNTY WATER DEPARTMENT 1-910-455-0722

CARTERET COUNTY

TOWN OF NEWPORT - WATER 1-252-223-5111

TOWN OF MOREHEAD CITY - WATER 1-252-726-6848

CABLE TV

TIME WARNER 1-252-223-5011

MAIL

US POSTAL SERVICE 1-910-353-2766

TRASH PICK UP

MILITARY WASTE MANAGEMENT, INC 1-910-326-2766

WASTE INDUSTRIES 1-910-455-0201

PREVIOUS TENANT NAME: ______________________________________________________