NORTH CAROLINA CUMBERLAND COUNTY CONTRACT

THIS CONTRACT AND AGREEMENT made and entered into this 7th day of August, 2010 by and between George R. Davis and wife, Hazel W. Davis, of Cumberland County, North Carolina hereinafter called Seller and Vance U. Tyson, Jr. and wife, Rebecca D. Tyson of 4925 NC Hwy 87 South, Fayetteville, NC 28306, hereinafter called Buyer; WITNESSETH That the Seller agrees to sell and the Buyer agrees to purchase from the Seller at the price and terms hereinafter set forth, all of that plot, piece or parcel of land described below, together with all improvements located thereon and such personal property as is listed below (the real and personal property are collectively referred to as the Property), in accordance with the terms of this Contract and Agreement. REAL PROPERTY: The real property is all of that certain part and parcel of land located in/near the City of Wilmington, North Carolina and more particularly described as follows: Street Address: 1413 Swordfish Lane, Carolina Beach, NC 28428. Legal Description: All of lot # 18, block 25, Wilmington beach, as the same is shown on map record in map book 2, page 30, New Hanover county registry. Being duly recorded in Deed Book 1174, page 1277 of New Hanover county Registry of Deeds. PERSONAL PROPERTY: PURCHASE PRICE: The Buyer agrees to pay for said Property the purchase price of $150,000.00 (One Hundred fifty Thousand Dollars), to be paid as set forth hereinafter: DOWN PAYMENT: At the time of the execution and delivery of this contract, Buyer shall pay to Seller $ 500.00 (Five Hundred Dollars), receipt of which is hereby acknowledged. BALANCE OF THE PURCHASE PRICE: The balance of the Purchase Price shall be $150,000.00 (One-Hundred Fifty Thousand), together with interest from

date of this Contract at Four (4) percent per annum on the unpaid balance of the Purchase Price until paid in full. Buyer shall paid said balance in equal consecutive monthly installments of $500.00 (Five Hundred Dollars) per month, such monthly installments being applied first to interest and then to charges set forth hereafter and lastly to principal. Interest shall be computed monthly in advance on the unpaid principal balance. Buyer shall thereafter make these monthly payments on the 2nd of the month until Buyer has paid all of the Purchase Price and interest and any other charges described hereinafter. PREPAYMENT: Buyer shall have the right to prepay at any time and the prepayment shall be applied first to accrued interest and then to charges set forth in this Contract, and lastly to a reduction of principal. LATE CHARGE FOR OVERDUE PAYMENTS: If Seller has not received the full amount of any monthly payment at the end of 15 calendar days after the date it is due, Buyer shall pay a late charge of $10.00 per day. ATTORNEYS FEES: In the event of Buyers default and written notice from Seller as set forth hereinabove Buyer agrees to pay all legal expenses incurred by Seller. PLACE OF PAYMENT: All payments pursuant to the Contract shall be

payable without demand at the residence of or by mail to Vance U. Tyson and wife Rebecca D. Tyson, 4925 NC Hwy 87 South, Fayetteville, North Carolina 28306 or his appointee or assigns. TAXES: Buyer shall pay to Seller the amount of taxes which Seller may pay on the property after the execution of this Contract, such amount to be paid by Buyer to Seller in addition to the first payment falling due after the Seller pays such taxes. INSURANCE: Buyer shall secure and maintain hazard insurance of such type and amounts as may be required from time to time by Seller on the buildings and improvements now or hereafter on said Property. All insurance shall be carried in companies approved by the Seller, and the policies and renewals thereof shall have loss payable clause in favor of and in form acceptable to Seller. In the event of loss, Buyer shall give immediate notice by mail to Seller, who may make proof of loss if not made promptly by Buyer, and each insurance company concerned is

hereby authorized and directed to make payment for such loss directly to Seller instead of to Buyer, and the insurance proceeds, or any part thereof, may be applied by Seller at its option, either to the reduction of the balance then owed by Buyer or to the restoration or repair of the property damaged. TIME IS OF THE ESSENCE: Buyer agrees to pay the purchase price of the property as set forth in this Contract and it is understood and agreed that time of payments is of the essence of this contract. DEFAULT: Failure of the Buyer to pay the full amount of each monthly

payment when due or failure of Buyer to comply with any provisions of this Contract shall constitute default. If Buyer is in default and fails to cure the default and to otherwise be and remain fully in compliance with the terms of this Contract within (10) days after receiving written notice from Seller notifying Buyer of the default, then all rights of Buyer shall cease and terminate without further action by Seller. Buyer, if remaining in possession following default and failure to cure the default and otherwise be and remain fully in compliance with the terms of this Contract within (10) days after receiving written notice from Seller notifying Buyer of the default, shall thereafter hold the property as a tenant at will and any and all sums previously paid by Buyer to Seller shall constitute liquidated damages for the breach of this Contract. If Buyer is in default and fails to cure the default and to otherwise be and remain fully in compliance with the terms of this Contract within (10) days after receiving written notice from Seller notifying Buyer of the default, Buyer specifically acknowledges that Buyer shall thereafter hold the Property only as tenant at will, with the rental rate being at the fair market value for the Property at that time; and Buyer specifically agrees and acknowledges that Buyer, as a tenant at will, shall be subject to the jurisdiction of the court in summary ejectment proceedings pursuant to Chapter 42 of the North Carolina General Statutes. This shall in no way limit Sellers other rights or remedies, nor shall it be a limit upon jurisdiction of the courts. COMPLIANCE WITH LAWS: Buyer agrees that he will make no unlawful or offensive use of the Property prior to closing and further agrees that he will protect and indemnify and hold harmless Seller from any loss or damage, penalty, fine, or

expense imposed or incurred by reason of Buyers failing to maintain the Property in conformity and compliance with all ordinances, laws, statutes, regulations and restrictive covenants of Federal, State, County, and City authorities having jurisdiction thereof, or of the subdivision. INDEMNIFICATION: Buyer agrees to indemnify and hold harmless Seller from any and all third-party claims, actions, liability and expenses (including the expense of attorneys fees, court costs, settlements, and judgments) caused by or arising out of Buyers occupation, use or possession of the Property, or Buyers negligent or intentional actions or omissions on the Property or because of violation of any restrictive covenants, ordinance or zoning provision. Upon notice from Seller, Buyer will resist and defend any such claim or action at Buyers expense and by counsel reasonably satisfactory to Seller. MAINTENANCE: Buyer agrees to keep the Property in as good order and condition as currently exits, reasonable wear and tear expected, and will not commit or permit any waste. Buyer agrees to make, at own expense, all repairs to the premises. If Property is located on a Class C road, any maintenance or

improvements thereof is the responsibility of the Buyer. FIRE AND OTHER CASUALTY: The risk of loss or damage by fire or other casualty at all times following the execution of this Contract shall be upon Buyer. POSSESSION: Possession of the Property shall be delivered at the time of execution of this Contract. LIGHTS, HEAT, WATER, SEWER: During the duration of this agreement, Buyer shall provide and pay all lights, heat, water, sewer and utility charges upon and serving the Property. Such obligation shall continue until the time of closing or until the breach of this contract. ALTERNATIONS TO THE PREMISES: Buyer shall have the right to many any improvements, additions, or alternations to the Property at Buyers expense, so long as such are performed in accordance with all applicable laws and building codes, and provided the same are done in a good workmanlike manner, and provided Buyer agrees to indemnify and hold harmless Seller from any and all liens

or claims whatsoever arising directly or indirectly from such alterations or improvements made by or on behalf of the Buyer. Any alterations, improvements, or additions to the Property made by Buyer become the sole property of Seller until such time that all obligations of Buyer have been fully complied with. In the event Buyer fails to perform his obligations under the contract, then such alterations, improvements, and additions shall remain the sole property of the Seller, and Buyer shall be entitled to no credits or set-off for the value of same. CONDITIONS: (1) All deed of trust, liens and other charges against Property, except any liens arising from labor or materials supplied or used on the Property for Buyers benefit or with the Buyers approval, must be paid and canceled prior to or at closing. (2) Title must be delivered at closing after all terms of this contract have

been performed by the Buyer, by General Warranty Deed and must be fee simple marketable title, free of all liens and encumbrances except ad valorem taxes for the year of the closing, easements of record, unviolated restrictive covenants, zoning restrictions, any liens arising from labor or material supplied or used on the Property for Buyers benefit or with Buyers approval, and such other encumbrances as may be assumed or specifically approved by Buyer. ASSIGNMENTS: Should Buyer decide to obtain a loan to pay in full the amount remaining owed pursuant to this Contract, Buyer shall be responsible for all costs with respect to said loan obtained by Buyer. Seller shall have no obligation to pay any discount fee or other charge in connection therewith. INSPECTION: Buyer specifically acknowledges that he either has inspected the Property by himself, or qualified individuals acting on his behalf, or that he has been afforded an opportunity to have such an inspection done. Buyer acknowledges that (1) the electrical, plumbing, heating and cooling systems and built-in appliances, if any, are in good working order, (2) the roof, gutters, structural components, foundation, fireplace(s) and chimney(s) if any are performing the function which intended and are not in need of immediate repair, (3) there is no unusual drainage conditions or evidence of excessive moisture adversely affecting the structure(s) and

(4) the well/water and septic/sewer systems, if any, are adequate, not in need of immediate repair and performing the function for which intended. CLOSING EXPENSE: Seller shall pay for the preparation of a deed. All other expenses shall be paid by Buyer. PARTIES: This contract shall be binding upon and shall inure to the benefit

of the parties and their heirs successors, and assigns. As used herein, words in the singular include the plural and the masculine include the feminine and neuter genders as appropriate. NOTICE: Any notice required given under the terms of the Contract may be made to the other party by regular mail. Unless applicable law requires a different method, any notice that must be given to Buyer under this Contract will be given by delivering it or by mailing it by first class mail to Buyer at the property address or at a different address if Buyer has given written notification to Seller of a different address for notice purposes. ENTIRE AGREEMENT: This contract contains the entire agreement of the parties and there are not representations, inducements, or other provisions other than those expressed in writing. All changes, additions or deletions hereto must be in writing and signed by all parties. IN WITNESS WHEREOF, Seller has caused these present to be executed in his, her, or their name, attested, and Buyer has hereunto set his, her or their hands, this the day and year first above written.

__________________________George R. Davis, Seller

__________________________Hazel W. Davis, Seller

__________________________Vance U. Tyson, Jr., Buyer (000-00-0000)

__________________________Rebecca D. Tyson, Buyer (000-00-0000)