RULES AND REGULATIONS REGARDING

PRIVATE COMMON AREA IMPROVEMENTS

PROMULATED BY BOULDER CREEK ASSOCIATION

Effective 1 June, 2008

WHEREAS, over the years private improvements, as more particularly defined below, have been constructed on the Common Area for the exclusive use and enjoyment of various Living Units that are not community in nature (“Private Improvements”); and,

WHEREAS, the Declaration of Covenants, Conditions, and Restrictions of Boulder Creek, a Planned Unit Development (CC&Rs), fail to provide guidance with regard to thePrivate Improvements constructed on the Common Area; and,

WHEREAS, these Private Improvements were constructed by various parties over the years, including the Developer and various Owners, with and without permission of the Boulder Creek Association (BCA); and,

WHEREAS, due to the passage of time, change in ownership of the Lots and Living Units, the gradual deterioration of these improvements, and the accelerated appreciation in the value of the Lots and Living Units, the BCA Board of Directors, as the governing body of the BCA, desires to promulgate rules and regulations to aid the BCA in carrying out its functions and to ensure that the Property is maintained and used in a manner consistent with the interests of the Owners.

Now, therefore, the following Rules and Regulations are promulgated:

  1. Governing Documents and Authority. Pursuant to the (i) Articles of Incorporation of Boulder Creek Association, filed on June 14, 2007 with the Department of Commerce for the State of Utah, the (ii) Bylaws of Boulder Creek Association, a Utah non-profit corporation, the (iii) Declaration of Covenants, Conditions, and Restrictions of Boulder Creek , a planned unit development, recorded on May 25, 1993, as Instrument 00379816, in Book 0727, page 0245 through 0283, inclusive, in official records of the Summit County Recorder, State of Utah, and the (iv) First Amended Plat of Boulder Creek Subdivision, a Planned Unit Development, as recorded as No. 442925, on November 22, 1995, in official records of Summit County, State of Utah (collectively “Governing Documents”), the BCA Board of Directors has authority to promulgate and enforce such reasonable rules, regulations, and procedures as may be necessary or desirable to aid the Association in carrying out any of its functions or to ensure that the Property is maintained and used in a manner consistent with the interests of the Owners. Specifically, paragraph 1 of section VI of the CC&Rs requires that the BCA maintain and operate the Common Area as necessary to make the Lots and Living Units usable.
  1. Private Improvements. Exhibit A identifies thePrivate Improvements, organized by the Living Unit, which have been constructed by the various Owners and Developer and are currently existing on the Property. The Private Improvements are further defined and categorized in paragraph 3 below.
  2. Categories of Private Improvement. To orderly analyze and administer the Private Improvements, the improvements have been separated into two categories. These categories are, as follows:
  1. Extensions of Common Roadway Improvements. Extensions from the common roadway to provide the public, and the Living Unit , with usable ingress to and egress from a Living Unit that include one or more of a driveway, walkway, or stairway (“Extensions of Common Roadway Improvements”).
  1. Extensions of Limited Common Areas. Extensions of limited common areas with a reasonable expectation of privacy and exclusive use.(“Extensions of Limited Common Area Improvements”).
  1. Extensions of Common Roadway Improvements. The Private Improvements in the category of Extensions of Common Area Roadway Improvements are denoted on Exhibit A for each Lot by a capital letter “A.”
  1. Extensions of Limited Common Area Improvements. The Private Improvements in the category of Extensions of Limited Common Area Improvements are denoted on Exhibit A for each Lot by a capital letter “B.”
  1. Repair and Maintenance. The repair and maintenance, including replacement or removal, of a Private Improvement shall be at the sole cost and expense of the BCA or the respective Owner, as the case maybe, as follows:
  1. Extensions of Common Roadway Improvements shall be the responsibility of the BCA.
  2. Extensions of Limited Common Area Improvements shall be the responsibility of the respective Owner.
  1. In the case of a single improvement that functions partially as an Extension of the Common Roadway or partially as an Extension of Limited Common Area, or both, the BCA shall repair, maintain, replace or remove that portion of the structure that provides ingress to and egress from the associated Lot from the roadway. The Lot Owner shall be responsible for the repair, maintenance, replacement or removal of the remaining portion of the improvement. If the BCA, at its sole discretion, modifies the ingress and egress route, thus changing the joint use nature of that structure to that of the Owner’s single use structure , the Owner shall then be solely responsible for its repair, maintenance, replacement or removal.

d. In the case of a single improvement that is shared by two lots, other than those for which the BCA shall be responsible for repair and maintenance as set forth above, both adjacentOwners shall be equally responsible for the cost of repair, maintenance, replacement or removal of that improvement.

  1. License. BCA grants to each respective Owner a revocable license to occupy the Common Area for the purpose of using and enjoying those Private Improvements identified in paragraph 3 as anExtension of Limited Common Area Improvements . Therepair and maintenance of thesePrivate Improvements on a licensed area shall be at the sole cost and expense of the respective Owner according to paragraph 6, above. The Private Improvements on a licensed area shall be repaired and maintained in a state of good repair and safe condition, ordinary wear and tear not excepted. BCA shall have the right, but not the obligation, to inspect the licensed area and all Private Improvements, and BCA shall in its sole and absolutediscretion determine whether the private improvement is in good repair or safe condition, or both. If the BCA determines that the private improvement is either not in good repair or safe condition, or both, and the Owner after reasonable notice has not remedied the deficiency, the BCA may correct the deficiency via repair, replacement or removal for the account of the Owner. The costs so incurred by the Association shall be immediately due and payable by the Owner to the BCA and the BCA may lien the Owner’s Lot following the procedures set forth in paragraph 8 below. “Reasonable notice” for the purpose of this paragraph and paragraph 8 below shall be a minimum of 60 days notice sent by certified mail, return receipt requested, followed by a second 30 day notice for a total of 90 days minimum notice.
  1. New PrivateImprovements. With the written approval of the BCA governing body, after having reviewed and approved the Owner’s written plans and specifications and after having granted to the Owner a revocable license of use in the Common Area or Limited Common Area, the Owner may construct on the licensed area the new approved Private Improvements at its sole cost and expense. Owner shall be responsible for obtaining any and all permits and/or approvals from the local governing authorities. Owner shall provide a copy of the permits, if applicable, to the BCA. The New Private Improvements shall be subject to all rules and regulations currently in place or adopted in the future. If any New Private Improvements are commenced by the Owner, the Owner must diligently pursue to complete the New Private Improvements. If the BCA determines that the New Private Improvements are abandoned, not in good repair, or not in safe condition, and the Owner after reasonable notice has not remedied the deficiency, the BCA may correct the deficiency, including without limitation removal of the improvement, for the account of the Owner and then lien the Owner’s Lot. The cost incurred by BCA shall be immediately due and payable by the Owner to the BCA. The lien procedure, established by theCC&Rs, shall be, as follows:

Personal Obligation and Lien. Each Owner shall, by acquiring or in any way becoming vested with his interest in a Lot, be deemed to covenant and agree to pay to the BCA the cost to correct the deficiency, together with the hereinafter provided for interest and costs of collection. All such amounts shall be, constitute, and remain: (i) a charge and continuing lien upon the Lot with respect to which such lien is made; and (ii) the personal obligation of the person who is the Owner of such Lot at the time the lien is imposed.

Effect of Nonpayment – Remedies. Any such obligation not paid when due shall, together with the hereinafter provided for interest and costs of collection, be, constitute, and remain a continuing lien on the Lot from the due date thereof. The BCA shall record the notice of lien in the public records of SummitCounty and if the obligation is not paid may proceed to foreclose the lien in the same manner allowed by the laws of the State of Utah for Trust Deeds, with the attorney for the BCA hereby appointed as Trustee. The person who is the Owner of the Lot at the time the obligation falls due shall be and remain personally liable for payment. If the obligation is not paid within thirty (30) days after the date on which it becomes due, the amount thereof shall bear interest from the date of delinquency at the rate of eighteen percent (18%) per annum and the BCA may bring an action either against the Owner who is personally liable or to foreclose the lien against the Lot. Any judgment obtained by the BCA or non-judicial foreclosure shall include reasonable attorneys’ fees, court costs and each and every other expense incurred by the BCA in enforcing its rights.

  1. Rules and Regulations Amendable. The BCA reserves the right to change these rules and regulations in its sole and absolute discretion,as BCA deems necessary to carry out its functions.
  1. Capitalized Words. Those words capitalized herein have the meaning as defined in the CC&Rs when the context so indicates.
  1. Successors and Assigns. The conveyance of a Lot to a new Owner shall also convey any licensed area associated with a Living Unit together with permanent Private Improvements.

12. Scope. These rules and regulations apply only to those matters expressly contemplated by these provisions and to no other matters contained in the Governing Documents. In the event of a conflict between these rules and regulations and the Governing Documents, the Governing Documents shall control.

13. Exhibits. These Exhibits are incorporated herein by reference:

Exhibit “A”

End of Rules and Regulations

Exhibit A

(Structures existing as of January 1, 2008)

FRONT ROW (DUPLEX/TRIPLEX/TRIPLEX)

LOT 1

Driveway Area (A)

Concrete Patio at lower bedroom entry (A)

Concrete staircase on East side to second level entry (A)

Wood decking at mid-level entry (A)

Concrete staircase from second level entry to back deck (B)

Wood staircase and deck including log railings (B)

LOT 2

Driveway Area (A)

Concrete Patio at lower bedroom entry (A)

Concrete staircase to second level entry (A)

Wood decking at second level entry (A)

Patio above second level entry (B)

One step and concrete slab connecting above slab to next unit slab (B)

LOT 3

Driveway Area (A)

Concrete Patio at lower bedroom entry (A)

Concrete staircase shared with lot 2 above (A)

Concrete slab above second level entry leading to tunnel (B)

Wood decking at second level entry (A)

Concrete staircase to hot tub (B)

Concrete slab supporting hot tub (B)

Wood staircase leading from rear bedroom to hot tub slab (B)

LOT 4

Driveway Area (A)

Wooden staircase to upper front entrance (A)

Concrete slab behind wooden staircase (A)

Concrete slab at rear middle level and associated tunnel area leading to lot 3 (B)

Wooden deck at rear supporting mid-level hot tub (B)

LOT 5

Driveway Area (A)

Concrete slab at lower bedroom entry (A)

Concrete staircase to mid-level entry (A)

Wood decking at mid-level entry (A)

Concrete slab at rear supporting hot tub (includes privacy fence structure) (B)

LOT 6

Driveway Area (A)

Concrete slab at lower bedroom entry (A)

Concrete staircase leading to lower bedroom entry (A)

Concrete staircase leading to mid-level entry (A)

Concrete slab adjacent to mid-level entry (B)

Wood decking at mid-level entry (A)

Connecting slab to lot 5 at mid-level (B)

Concrete staircase leading to hot tub (B)

Concrete slab supporting hot tub (B)

LOT 7

Driveway Area (A)

Wooden staircase leading to front entrance (A)

Concrete slab behind wood staircase (A)

Lower level concrete slab at rear supporting hot tub and associated tunnel leading to lot 6 mid-level (B)

Wooden deck at upper level rear above hot tub (B)

LOT 8

Driveway Area (A)

Concrete slab lower level bedroom (A)

Concrete patio adjacent to mid-level entrance with log rails (B)

Flagstone footpath from adjacent parking pad to mid-level entrance (A)

Wood decking at mid-level entrance (A)

Wood deck at rear upper level supporting hot tub (B)

MIDDLE ROW (DUPLEX/ PHASE 1 TRIPLEX/DUPLEX/ PHASE 1 TRIPLEX)

LOT 9

Driveway Area (A)

Concrete sidewalk leading to front door (A)

Patio Slab at front door (A)

Lower level Limited Common Area Slab (A)

Rear concrete patio adjacent to lower level bedroom (B)

Log tie decking supporting hot tub (B)

LOT 10

Driveway Area (A)

Concrete sidewalk leading to front door (A)

Patio slab at front door (A)

Lower level Limited Common Area concrete slab (A)

Rear concrete patio adjacent to lower level bedroom (B)

Log tie decking supporting hot tub (B)

LOT 11

Driveway Area (A)

Concrete sidewalk leading to front door (A)

Patio slab at front door (A)

Lower level Limited Common Area concrete slab (A)

Rear concrete patio adjacent to lower level bedroom (B)

Extra slab at rear supporting hot tub (B)

Wooden deck extension at main level rear (B)

LOT 12

Driveway Area (A)

Concrete sidewalk leading to front door (A)

Concrete landing at front door (A)

Lower level Limited Common Area concrete Slab (A)

Rear concrete patio adjacent to lower level bedroom (B)

Rear patio extension supporting hot tub (B)

Wood deck extension at rear above hot tub slab (B)

LOT 13

Driveway area (A)

Concrete sidewalk leading to front door (A)

Concrete patio at front door (A)

Lower level Limited Common Area concrete slab (A)

Rear concrete patio adjacent to lower level bedroom (B)

Rear patio extension supporting hot tub (B)

LOT 14

Driveway area (A)

Sidewalk to front door (A)

Patio slab at front door (A)

Lower level Limited Common Area concrete slab (A)

Rear patio slab adjacent to lower bedroom (B)

Rear patio extension supporting hot tub (B)

Wooden deck extension above hot tub area (B)

LOT 15

Driveway area (A)

Concrete sidewalk to front door (A)

Concrete patio slab at front door (A)

West side main level wood deck extension (B)

Lower level Limited Common Area concrete slab (A)

Rear patio slab adjacent to lower bedroom (B)

Patio extension supporting hot tub (B)

LOT 16

Driveway Area (asphalt) (A)

Concrete sidewalk to front door (A)

Concrete patio at front door (A)

Lower level Limited Common Area concrete slab (A)

Rear concrete slab adjacent to lower bedroom (B)

Patio slab extension supporting hot tub (B)

LOT 17

Driveway Area (asphalt) (A)

Concrete sidewalk to front door (A)

Concrete landing at front door (A)

Lower Level Limited Common Area concrete slab (A)

Rear patio slab adjacent to lower bedroom (B)

Patio Extension supporting hot tub B)

Wood deck extension at rear main level (B)

LOT 18

Driveway Area (asphalt) (A)

Concrete sidewalk to front door (A)

Patio slab at front door (A)

Lower level Limited Common Area concrete slab (A)

Rear concrete patio adjacent to lower bedroom (B)

Additional patio slab (B)

Wood deck extension at rear main level (B)

Wood rails surrounding lower level patio slabs (B)

UPPER ROW (TRIPLEX/DUPLEX/TRIPLEX/DUPLEX)

LOT 19

Driveway Area (A)

Small Parking pad (A)

Lower level bedroom patio slab (A)

Concrete staircase to mid-level entry (A)

Mid-level entry wood deck (A)

Rear patio slab supporting hot tub (B)

Wood railings surrounding hot tub (B)

Privacy fence between lot 19 and lot 20 rear slabs (B)

LOT 20

Driveway area (A)

Wood front stairs (A)

Concrete area behind front wood stairs (A)

Rear upper decking with wood rails (B)

Rear patio slab supporting hot tub (B)

Lower Rear level concrete slab and tunnel leading to lot 21 (B)

Privacy Fence shared with lot 19 (B)

LOT 21

Driveway area (A)

Concrete slab at lower level bedroom (A)

Concrete staircase to mid-level entry (A)

Wood decking at mid-level entry (A)

Concrete slab adjacent to tunnel entrance (B)

Concrete walkway leading uphill from mid-level slab (B)

Small concrete staircase leading to next concrete patio slab (B)

Concrete slab with log rails (B)

Concrete staircase leading to rear slab (B)

Rear concrete slab supporting hot tub (B)

LOT 22

Driveway area (A)

Concrete slab at lower bedroom (A)

Two concrete steps leading to parking pad between lots 21 and 22 (A)

Concrete steps to mid-level entry shared with lot 21 (A)

Wood deck at mid-level entry (A)

Rear wood deck supporting hot tub with log rails (B)

LOT 23

Driveway area (A)

Concrete steps leading to mid level door (A)

Mid-level deck at entry door (A)

Wooden staircase (B)

Wooden deck at upper level rear supporting hot tub (B)

LOT 24

Driveway Area (A)

Concrete staircase leading to mid level front door (A)

Concrete patio at mid-level entry area adjacent to tunnel (B)

Wood deck at rear upper level supporting hot tub (B)

Privacy Fence shared with lot 25 (B)