In consideration of the monies received and the mutual promises contained herein, David L. Smith and Elizabeth A. Fagan, Owners of the Property located at 22621 Bay Point Dr., Galveston, TX, do hereby lease and rent to the undersigned Tenant the Property described above, under the following terms and conditions:

1. OCCUPANCY: Tenants desire to occupy and Owners agree to rent the Property during the following period of occupancy:
Arrival date: ________________________ (after 3 PM)
Departure date:__________________________ (before 12 Noon)

2. RENT: Tenants agree to pay Owers the following rent, fees and taxes:
Rent: $____________
Hotel/Occupancy Tax (15% of Rent) $_________
Trip Cancellation Insurance: $___________

2. RESERVATION INCLUDES TRIP CANCELLATION INSURANCE intended to protect tenant's travel investment in the event of unforeseen circumstance, which would cause cancellation. Tenant will be provided with a document detailing the plan, which will also serve as Certificate of Insurance and Description of Services. Tenant has 10 days after receipt of the Certificate of Insurance and Description of Services to cancel the travel insurance. If tenant chooses to cancel service within said 10 days, the amount of then insurance premium will be credited to the balance. After this 10-day period, the insurance premium paid is non-refundable. This coverage is OPTIONAL. To decline coverage, initial here _____ and deduct the Trip Cancellation Insurance Premium from the Advance Payment. To accept coverage, pay Advance Payment. Coverage will begin 24 hours after Owners receive your payment.

2. ADVANCE PAYMENT of one-half (1/2) of the rental rate shown above and Trip Cancellation Insurance (TCI) premium must be paid within 7 days after the reservation is made in order to secure your reservation. If the advance payment is not received by Owners within the allotted time, the reservation will be automatically canceled without notice.
Advance Payment required: $______________(1/2 Rent) + $____________ (TCI) = $_____________ Total.

3. BALANCE DUE, including taxes, damage deposit waiver and any and all fees for goods or services as shown above, must be received by Owners 20 days prior to arrival. If the balance is not received 20 days prior to arrival, Owners shall have the right, without further notification, to deem the reservation canceled, pursuant to paragraph 10 of the Confirmation and Lease agreement. Acceptable forms of payment include; personal check, cashier's check payable to David L. Smith or approved credit cards. A $25 handling fee will be charged for all returned checks. For reservations made less than 30 days from check in, all funds, or TOTAL as shown above are due immediately. ALL RESERVATIONS MUST BE PAID IN FULL PRIOR TO CHECK-IN AND POSSESSION OF THE PREMISES.

4. TAXES as required by the State of Texas include the collection of up to 15% Occupancy Tax on all fees for goods and services and on the rental rate. Taxes are subject to change. Taxes will be disbursed upon termination of tenancy or a material breach of this agreement.

5. PETS are not permitted in any of the rental properties with the exception of designated pet properties. Violation is a material breach and is grounds for immediate EVICTION. NO EXCEPTIONS - NO REFUNDS. For those designated properties that do allow pets there is an additional non-refundable fee. Pets shall be limited to two (2) domestic, housebroken; nondestructive adult dogs (no puppies).

6. FAMILY GROUPS ONLY - Century 21 Bay Reef Realty is authorized, through their contract with the Owner, to rent only to family groups. The tenant shown above acknowledges that he/she is at least 25 years old and understands that he/she must personally occupy the property for the entire period. Tenant further acknowledges he/she MAY NOT rent the property in connection with a non-family use such as high school, college or civic groups and to do so constitutes a material breach, which would be grounds for immediate EVICTION. NO EXCPETIONS - NO REFUNDS.

7. MAXIMUM OCCUPANCY, as shown above, must not be exceeded. Occupancy count does include children. The hosting of parties, which would increase maximum occupancy in the home, on decks, stairs or anywhere on the property, is a violation of your rental lease. OVER OCCUPIED PROPERTIES CONSTITUTES A MATERIAL BREACH AND ARE SUBJECT TO IMMEDIATE EVICTION. NO REFUNDS, NO EXCEPTIONS.

8. TERMINATION - If Tenant or any member of his party violates any of the terms of this agreement, and then Agent may, at Agent's sole discretion, terminate this lease with no refund of the unused portion of the rents and may enter the premises and remove Tenant, the members of this party and their belongings. Any material breach as set forth herein will entitle the Owner and/or Agent to expedite eviction procedures. A material breach shall include, but not be limited to, damage to the property, or failure to check out on a timely basis.

9. CANCELLATIONS must be made in writing and received by Century 21 Bay Reef Realty 30 days prior to arrival date to receive a full refund less a $75.00 cancellation fee. If cancellation is received within the 30 days before your scheduled arrival, then all monies paid will be forfeited. Reservations made within 30 days of arrival date are subject to all monies forfeited if canceled. The trip cancellation insurance premium is non-refundable. Refunds will be made in the same manner as payment was received and only to the person on the reservation. TRIP CANCELLATION INSURANCE IS HIGHLY RECOMMENDED TO PROTECT AGAINST UNEXPECTED EVENTS.

10. TRANSFERS by tenant may be made from one week to another WITHIN THE SAME PROPERTY ONLY. All requests for transfers must be made in writing and received by Century 21 Bay Reef Realty at least 30 days prior to check in. Transfers, which occur, from a higher rental rate season to a lower rental rate season will remain at the charge of the higher rental rate season. Transfers from a lower rental rate season to a higher rental rate season will be charged the higher rental rate. There will be a $75.00 transfer fee plus tax, due with every week transferred and all payments will be due as specified in Paragraph 2.

11. All damage must be reported promptly to Century 21 Bay Reef Realty staff. Century 21 Bay Reef Realty staff will have the sole authority to determine the extent of repairs necessary. The guest must report any loss or damage to the unit or its contents to Century 21 Bay Reef Realty staff promptly. Agent, or Agent's representative, will inspect property upon Tenant's departure and will bill for all costs for damages due to extra cleaning, repairs, or replacements not reported to Century 21 Bay Reef Realty. Tax must be charged on the assessed damage amount. If the cost of the damages is undeterminable by the time of departure, the tenant shall remain responsible for such costs and agrees to pay promptly when notified by Agent of assessed amount. Rearranging of furniture is not permitted. TENANT MUST LEAVE PROPERTY CLEAN AND READY FOR THE NEXT GUEST, ALL DISHES WASHED AND PUT AWAY, ALL FOOD REMOVED FROM REFRIGERATOR AND ALL TRASH REMOVED FROM HOME, ALL BEDS MADE PRIOR TO DEPARTURE AT CHECK OUT.

12. INSPECTION AND REPAIRS to property, its fixtures, appliances, furnishings and facilities during the rental period may be made by Owner, agent or Agent's representative during the rental period.

13. CHECK IN for Properties is 3:00 P.M. on the arrival date at CENTURY 21 BAY REEF REALTY office. If you plan to check in after 5:00 P.M., please call the office to make arrangements for check in. In extreme situations check in time may need to be extended until 5:00 P.M. for additional cleaning and regular maintenance. Tenant shall not be on the Property, including driveways and outside showers, prior to check in. TENANT MAY BE CHARGED UP TO AN ADDITIONAL ONE (1) DAY RENTAL IF PROPERTY IS OCCUPIED PRIOR TO CHECK IN. Keys will not be released until stated check in time.

14. CHECK OUT on the day of departure will be no later than 10:00 A.M. Tenant must return keys to the office on check out day. No occupancy of the property, including driveways, and outside shower, after check out will be allowed. TENANT MAY BE CHARGED UP TO AN ADDITIONAL ONE (1) DAY RENTAL IF PROPERTY IS OCCUPIED AFTER CHECK OUT.

15. MISCELLANEOUS: Agent may accept commissions from independent businesses for goods and services pertaining to the property or the tenancy, such commissions being based on a percentage of the total charge.

16. LIMITATIONS OF REMEDIES, DAMAGES AND INDEMNITY
a) In the event that the Owner is unable to deliver said Property to Tenant under this lease agreement prior to occupancy because of fire, eminent domain, act of nature, double booking, delay in construction or any other reason whatsoever, Tenant hereby agrees that Agent & Owner's sole liability as a result of any of these conditions is the full refund of all consideration previously tendered by Tenant. Agent shall make such refund promptly. Pursuant to the terms of this lease, Tenant expressly acknowledges that in no event shall Agent or Owner be held liable for any consequential or secondary damages, including but not limited to, any expenses incurred, as a result of moving, for any damage, destruction or loss. If Agent is able to relocate Tenant.
b) Tenant understands that there are inherent risks associated with any property, including risks associated with any special feature, such as a spa, hot tub, sauna, Jacuzzi, pool, etc. Tenant certifies that they are thoroughly familiar with how to properly use the premises, including all special features included therein or thereon. Tenant will be responsible to explain how to use each and every feature of the dwelling to Tenant's guest. Tenant agrees to release and indemnify the Owner and his Agent from and against all liability should anyone be injured upon the premises during the term of this lease, resulting from any cause whatsoever, except in the case of a personal injury caused by eh negligent act of the Owner or his Agent or Agent's employees, and Tenant further agrees to indemnify and save harmless Owner and/or his Agent and Agent's employees from any claims made by Tenant or Tenant's guest for injury or liability to person or property. Tenant further agrees that tenant is responsible and liable for, and will pay upon request, any damages that occur to the premises or any portion thereof due to Tenant's and/or his guest misuse and/or negligent use of the premises or any portion thereof.
c) Tenant shall not be entitled to any refund or rebate due to acts of nature, delay in check in, unfavorable weather, disruption of utility services, malfunctioning or missing equipment/appliances/furnishings, surrounding construction and associated noise, empty propane gas cylinders for fireplaces or gas grills or any other situation occurring no under Agent's control. Tenant covenants and agrees to vacate upon an evacuation order or if Agents in Agent's sole discretion, deems it in the best interest of the Tenant to vacate. TRIP CANCELLATION INSURANCE IS HIGHLY RECOMMENDED TO PROTECT AGAINST UNEXPECTED EVENTS.
d) Every effort to insure that the information in this agreement and Rental Brochure is correct. However, we will not be responsible for any errors contained herein.

In witness whereof, this agreement is executed by each party hereto. Tenant acknowledges and accepts all terms as set forth on both sides of this agreement, and the rules and regulations on the attached page. Tenant also acknowledges that agent is representing the Property Owner of each home in the rental program. Signature below must be that of the tenant shown above.

By: ___________________________________________________ TENANT: ________________________________________________

Contact David Smith at (713) 532-6090 or davidlsmith@iname.com to check on availability of the property, and to reserve dates for your forthcoming vacation.