RESIDENTIAL JOINT AND SEVERAL LEASE

RESIDENTIAL JOINT AND SEVERAL LEASE This is a residential lease. It is a legally binding contract between the landlord and each tenant. Each tenant should read this lease carefully. This residential lease contains waivers of your rights as a tenant. Each tenant should not sign this lease until each tenant understands all of the agreements in this lease. This is a joint and several lease. This means that all the tenants as a group and each of the tenants as an individual are responsible to landlord for all of the agreements of this lease. For example, if the rent is not paid, landlord can sue all of the tenants (jointly) for any unpaid rent or, the landlord can bring a suit against any one tenant separately (severally) for all of the unpaid rent. NAMES OF LANDLORD AND TENANTS Name of the Landlord: The Landlord and/or property manager (hereafter referred to as Landlord) for the property in this lease agreement is: SHIP RENTALS, LLC DUSTIN J. RICKABAUGH P.O. BOX 426 Shippensburg, Pennsylvania 17257 Names of the tenants (hereafter referred to as Tenant): 1. ______________________________________________ 2. ______________________________________________ 3. ______________________________________________ 4. ______________________________________________ ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 1 of 10 LEASED PREMISES The leased premise is the place that the landlord agrees to lease to the tenant and the tenants agree to lease from the landlord. The leased premise is: 20 Britton Road, Shippensburg, Pennsylvania, 17257 LEASE TERM The lease term is the length of time the lease agreement is valid. This lease agreement starts at 12:01 a.m. on June 1, 2009. The lease ends at 12:01 a.m. on May 15, 2010. RENT Tenant shall pay to lessor as rent for the leased premises for the initial term hereof the total sum of Ten Thousand and Eighty Dollars ($10,080) payable in advance without set off, deductions or demand, in equal monthly installments of Eight Hundred and Forty Dollars ($840) payable on or before the first day of each month, for apartments where 3 or less tenants reside. Apartments where 4 tenants reside the rent will be One Thousand Dollars ($1000) per month or Twelve Thousand Dollars ($12,000) for the entire lease term. Tenant agrees to pay the monthly rent in advance on or before the FIRST day of each month. Tenant agrees to pay the last month's rent (MAY 2010) NOT LATER THAN March 15, 2009. Landlord does not have to make demand upon tenant to pay the rent. Tenant agrees to pay rent by first class mail postage prepaid or in person to landlord at the place specified by landlord. Each tenant agrees to pay a late charge of Five Dollars ($5.00) per day if tenant does not pay the rent on time. If tenant mails the rent to landlord, the date of payment will be the date the letter is postmarked. Tenant further agrees to pay Thirty Five Dollars ($35.00) dollars for returned checks for any reason. If any check is returned to landlord for insufficient funds or other reasons, late charges will continue until rent is actually paid by tenant. SECURITY DEPOSIT Tenant shall, upon the execution hereof, pay to the lessor and shall keep on deposit with lessor the sum of Eight Hundred and Forty Dollars ($840) as a security deposit for the payment of damages to the leased premises default in rent, or any other charges owed to the Landlord by the tenant for 3 or less tenants. And the sum of One Thousand Dollars ($1000) as a security deposit where 4 tenants reside. ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 2 of 10 Landlord can take money from the security deposit to pay for any damages caused by tenant, tenant's family and tenant's guests. If all keys issued to tenant are not returned at the end of this lease landlord can take money from the security deposit to cover the cost of a lock change. Landlord may take the security deposit to pay for any unpaid rent or any unpaid bill owed to landlord by tenant. After taking out for damages, lock changes, unpaid rent and any other debt owed to landlord, landlord agrees to send to tenant any security deposit money left over. Landlord will send the remaining security deposit money to tenant no later than 45 days after the lease ends and tenant leaves. Landlord also agrees to send to tenant a written list of damages and amounts of money taken from the security deposit. TENANT MUST MAIL SELF ADDRESSED ENVELOPE TO LANDLORD FOR SECURITY DEPOSIT REIMBURSEMENT. Tenant agrees to provide the landlord with a written forwarding address when tenant leaves and the lease ends. Failure of tenant to provide the landlord with a new address within 30 days after the lease ends and tenant leaves shall relieve the landlord of any responsibility to return the security deposit. Tenant may not use the security deposit as payment of the last month's rent, any rental payment, or charges occurring from utility expenses. Tenant agrees that if the lease is amended at anytime during the rental period, they forfeit their security deposit. If a tenant finds another tenant to replace them on the lease, then the initial tenant’s deposit is forfeited and the new tenant must provide a security deposit upon the signing of the lease. LANDLORD’S DUTY AT THE START OF THE LEASE Landlord agrees to give tenant possession of the leased premises on the starting date of the lease. The lease will start even if landlord cannot give tenant possession of the leased premises because the prior tenant is still in the leased premises or if the leased premises are damaged. If landlord cannot give tenant possession, tenant does not have to pay rent until the day landlord gives possession of the leased premises to tenant. DAMAGE TO LEASED PREMISES Tenant agrees to notify landlord immediately if the leased premises is damaged by fire or any other cause. Tenant agrees to notify landlord if there is any condition in the leased premises that could damage the leased premises or harm tenant or others. If tenant cannot live in the whole leased premises because it is damaged or destroyed by forces of nature, tenant may: 1) live in the undamaged part of the leased premises and pay less rent until the leased premises is repaired, or 2) end the lease and leave the leased premises. Tenant agrees that if the leased premises is damaged or destroyed and tenant ends the lease, landlord has no further responsibility to tenant. ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 3 of 10 INSURANCE Landlord agrees to have insurance on the building where the leased premises is located. Tenants’ own property is not insured by landlord's insurance. Tenant is responsible for tenant's own property that is located in the leased premises. ASSIGNMENTS OR SUBLEASES BY TENANT Assignment (or assign) is the legal term for a transfer of the lease from the tenant to another person. A sublease is a separate lease between the tenant and another person who leases all or a part of the leased premises from the tenant. This other person then becomes the landlord's new tenant and takes over the lease. Tenant agrees not to transfer (assign) this lease to anyone else without the written permission of the landlord. Tenant agrees that if tenant transfers this lease (assigns) or leases all or a part of the leased premises to another (sublease), tenant has violated this lease. RESPONSIBILITY FOR DAMAGE TO PROPERTY OR INJURY TO PEOPLE The landlord shall not be liable for any injury of damage to any person or to any property at any time on said premises or building from any cause whatever which may arise from the use or condition of said premises or building or from ice thereon, or from water, rain or snow which may leak into, issue or flow from any part of said building, or from the pipes or plumbing of the same, or from any place, or from any other cause, during the term or any renewal of this lease. Tenant agrees to indemnify and hold landlord harmless from and against all liability, damage, loss, costs and expenses, including attorney’s fees, occasioned by tenant's breach of any of the covenants, terms or conditions of this lease, or caused by tenant, his family or guests. Tenant is responsible for all damage to the leased premises and injury to people caused by tenant, tenant's family or guests. Tenant agrees that landlord is not responsible to tenant, tenant's family or guests for damage or injury caused by water, snow or ice that comes on the leased premises. USE OF LEASED PREMISES Tenant agrees to use the leased premises only as a residence. Tenant agrees to obey all federal, state and local laws and regulations when using the leased premises. Tenant agrees not to store any flammable, hazardous, or toxic chemicals or substances in or around the leased premises. Tenant agrees to use the residence only as the personal residence of tenant and not to assign this lease or sublet the apartment. Tenant agrees not to alter or make additions to the residence, its painting or its fixtures and appliances without landlord's written consent. Tenant agrees not to do or to permit any act or practice injurious to the building, which may be unreasonably disturbing to other neighbors, or which may affect the insurance on the building. Tenants agree that all appliances are for tenant convenience only and tenants are responsible for the first $50 of repairs. If tenant chooses not to pay the $50, landlord may remove the appliance and not replace it. ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 4 of 10 Tenant agrees not to do any activities in or around the leased premises which could harm anyone or damage any property. Tenant agrees that tenant will not allow anyone other than the individuals specified in this lease agreement to occupy the leased premises without the written permission of landlord. Tenant shall have a right to invite to the leased premises, for a reasonable period of time (not to exceed three days without the written consent of landlord) guests, family, or visitors so long as his/her obligations as a tenant under this lease are observed. RULES AND REGULATIONS Tenant agrees to obey all rules and regulations for the leased premises. If tenant violates any rules or regulations for the leased premises, tenant violates this lease. 1. Tenants leased premises is supplied with a heat source as part of the lease. If the heat source fails or there is not enough heat, tenant shall notify landlord. Tenant agrees not to use kerosene heaters or electric space heaters or any other portable heaters without the prior written consent of landlord. 2. Tenant will not make any alterations of the leased premises without the prior written consent of the landlord. 3. Tenants agree that waterbeds or any other liquid filled furniture are not permitted in the leased premises. 4. Tenant shall not disable the smoke detectors or other fire warning or fire protections devices. Tenant shall notify landlord if a smoke detector or fire warning or protection device is not in working order. 5. Tenant shall pay a service charge of thirty five dollars ($35.00) if a check given to pay rent is returned for insufficient funds or other cause within the control of the tenant. 6. Tenant agrees that tenant will not keep any pets on the leased premises unless a pet agreement is included as an addendum to this lease agreement. Tenant agrees that tenant will not allow tenant's guests or others to have or bring pets on to the leased premises. 7. Tenant agrees to have continuous electric, water, and gas service to the premises for the full term of the lease. Failure to do so authorizes landlord to procure the service and charge it to the tenant. 8. Tenant agrees there will be no parties held on the leased premises. 9. Tenant agrees that this lease does not confer any rights on resident to use for any purpose any of the property of the owner other than the interior of the apartment/house hereby leased, except the walks and roadways giving access thereto and such other areas, if any, as owner or agent may from time to time designate for the use of residents. When the use by resident of any other portion of owner’s or agent’s property is permitted, it shall be subject to the rules and regulations established by owner or agent. ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 5 of 10 10. Tenant agrees that this lease does not confer any rights for residents to use the basement for any other use than laundry facilities and that the landlord may enter the basement from the outside entrance to do maintenance on furnace, pipes, etc. or to add or remove supplies which may be stored there from time to time, without notice to tenants. 11. Tenant agrees that the attic may not be used and will be locked. 12. If trash is left outside of any apartment or is found in the wooded area behind the complex and there is identifiable information within the bag of trash that allows the landlord or their representative to determine which apartment the trash belongs to the trash will be removed and the apartment will be billed. There will be a fee of $25.00/bag of trash. Any outstanding bills from this process will be deducted from the security deposit at the end of the lease term if they are not paid within 30 days from the date of billing. LANDLORD'S RIGHT TO MORTGAGE THE LEASED PREMISES Subordinate and subordination are legal terms that mean that this lease does not have any effect upon the rights of the landlord's mortgage company. In other words, tenant rights under this lease are subordinate to landlord's mortgage company. If landlord does not make the mortgage payments, the mortgage company may have the right to end the landlord's ownership of the leased premises. If the mortgage company sells the leased premises at a mortgage foreclosure sale, the lease may end. Tenant agrees that landlord has the right to mortgage the leased premises. If landlord has a mortgage on the leased premises now, or if landlord gets a mortgage in the future, tenant agrees that this lease is subordinate to the landlord's mortgage. CARE OF LEASED PREMISES Tenant is responsible for, and will take good care of, the leased premises and all of the property in and around the leased premises. Tenant agrees to pay for any damage caused by tenant, tenant's family and tenant's guests. Tenant agrees to turn over possession of the leased premises to landlord when the lease ends. Tenant agrees to use due care in the use of the apartment and all other parts of landlord’s property, to give notice to landlord of the need for repairs. Tenant agrees to pay for all repairs, including extraordinary cleaning, to the apartment, its contents, and to all other parts of landlord's property which are required by any lack of care or negligence on the part of tenant, members of his family, or his visitors. Tenant agrees to maintain property inside and outside to be clean and neat at all times. Specifically, all garbage and debris must be picked up and disposed of in proper receptacles. Tenants agree that all appliances are for tenant convenience only and tenants are responsible for the first $50 of repairs. If tenant chooses not to pay the $50 landlord may remove the appliance and not replace it. Landlord retains the option whether or not to replace any refrigerator, washer, dryer or dehumidifier which is found to be beyond repair. Landlord will make necessary repairs to the apartment within a reasonable time after tenant notifies landlord of the need for repairs. At the termination of the tenant's occupancy, tenant agrees to completely clean the premises or ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 6 of 10 reimburse landlord for the cost of a commercial cleaning service. This sum may be deducted from the security deposit. LANDLORD’S RIGHT TO ENTER LEASED PREMISES Landlord and tenant agree that, landlord and landlord’s representatives, after having provided 24 hours notice, have the right to enter the leased premises at reasonable times, or in the case of emergencies or parties, without notice. Landlord and landlord's representatives have the right to inspect, to make repairs, to do maintenance, and to show the leased premises to others. UTILITY SERVICES Landlord and tenant agree to pay for the charges for utilities and services supplied to the leased premises as follows: Charge or Service: Television Cable Electric to Premises Air Conditioning Water Service Sewer Service Trash Service Natural Gas Lawn Maintenance Snow/Leaf Removal Pest Control Charges Fuel Oil-Heating Paid By: Tenant Tenant Tenant Landlord Landlord Landlord N/A Landlord Landlord Landlord N/A Pymt Method: Direct to Provider Direct to Provider Direct to Provider N/A N/A N/A N/A N/A N/A N/A N/A All reimbursable expenses for utility services must be paid to landlord within 10 days of written notice from landlord to tenant. Each tenant agrees to pay a late charge of Two Dollars ($2.00) per day if tenant does not pay the utilities on time. If tenant mails the utilities to landlord, the date of payment will be the date the letter is postmarked. Electricity, gas, water, and sewer services must be supplied continuously for entire lease period with costs borne by tenants. Tenant agrees that landlord shall have the right to temporarily stop utility service, in the event of an accident affecting the same or to facilitate repairs, maintenance or alterations made to the premises or elsewhere on landlord's property. GOVERNMENTAL POWER OF EMINENT DOMAIN Eminent domain is the legal name for the right of a government such as the state or county or city to take private property for public use. The government must pay fair compensation to anyone who has any right in the property that is taken by the government. If all or any part of the leased premises (or the building within which the leased premises is located) is taken by eminent domain, this lease will end automatically. Landlord and tenant agree ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 7 of 10 to release each other from any responsibility because leased premises taken by eminent domain and the lease has ended. VIOLATIONS OF THIS LEASE When either landlord or tenant does not do something that they have agreed to do, it is a violation of this lease. If tenant violates this lease, tenant may lose tenant's security deposit. If tenant violates this lease, landlord also can sue tenant for other expenses and may sue to evict tenant. Tenant violates this lease if tenant: 1. Fails to pay rent or other charges to landlord on time or, 2. Leaves (abandons) the leased premises without the landlord's permission before the end of the lease or, 3. Does not leave the leased premises at the end of the lease or, 4. Causes damage to the property or, 5. Does not do all of the things that tenant agreed to do in this lease. If tenant violates the lease, each tenant agrees to waive notice to quit. This means that the landlord may file a complaint in court asking for an order evicting each tenant from the leased premises without giving each tenant notice to quit first. Landlord does not have the right to throw tenant out of the leased premises (self-help eviction). The landlord can only evict tenant by court action. The landlord has the right to sue in court a tenant or tenants for eviction when they have violated the agreements in this lease. Even though each tenant is waiving notice to quit, each tenant will have a chance in court to challenge the landlord's claim for eviction. If tenant violates the lease agreement, the landlord may sue each tenant in court: 1. To collect overdue rent, late charges and money damages caused by tenant's violation of the agreements in the lease. 2. To recover possession of the leased premises (eviction) 3. To collect for unpaid rent until the end of the lease or until another person takes possession of the leased premises as a new tenant. Tenant agrees that landlord may receive reasonable attorney’s fees as part of a court judgment in a lawsuit against tenant for violation of the agreements of the lease. ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 8 of 10 OTHER AGREEMENTS BETWEEN LANDLORD AND TENANT 1. Student tenant must inform landlord by October first if they are planning on renting the residence for the next year. 2. The tenant acknowledges that he has personally inspected the apartment and has found its condition to be habitable and acceptable. 3. The tenant acknowledges that he has read and understands the provisions of this lease and realizes his rights both to consult with an attorney of his choosing concerning this lease and to propose amendments and additions to this lease. 4. The tenant expressly waives the benefit of all acts of assembly requiring any period of notice to vacate the premises upon termination of this lease and agrees to vacate the premises immediately upon the termination of this lease by whatever cause. 5. This lease contains the entire agreement between the parties, and it may be changed only as provided herein or by a written agreement signed by all parties. 6. Tenant shall keep the carpet clean. 7. Tenant shall put no holes in, or tape on, or writing on wood trim and/or walls. 8. Tenant shall provide secure garbage containers and shall put out garbage for collection on the days and in the places designated by landlord. 9. No part of landlord's property shall be used for the storage of automobiles or any other items. 10. No pets are allowed without an amendment to this lease. 11. Tenant acknowledges that no kerosene or other heaters employing combustible or inflammable liquids or gasses will be used on the premises. 12. If parking is available it is for tenant’s convenience only and is not guaranteed. 13. By signing this lease agreement each tenant agrees that the tenant has read and understands all of the agreements in this lease. 14. This is a joint and several lease. This means that all the Tenants as a group and each of the Tenants as an individual are responsible to the Landlord for all of the agreements of this lease. For example, if the rent is not paid, or damage done to the apartment, or if one (1) Tenant fails to pay, the Landlord can sue all of the Tenants (jointly) for any unpaid rent, rent arrearage or damage to the premises. The Landlord may bring a suit against any one (1) Tenant separately, as well (severally) for all of the unpaid rent. Should damages be owed, the security deposit may be applied to satisfy the debt owed to the Landlord by an individual Tenant. Signed by: Landlord: ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 9 of 10 Date: Signed by Tenant(s): 1. 2. 3. 4. Date: Date: Date: Date: ec6fd6ae-b9ea-4dde-9c1c-4b6fc502079f.doc Page 10 of 10