LEASE AGREEMENT

(Amended October 2008)

THIS LEASE AGREEMENT is entered into by and between the Board of Directors of the Racquet Club Village, Phases I, II, and III a Planned Unit Development, referred to below as "Racquet Club," and ______, the owner of one of the units within the Racquet Club, who is referred to below as "Unit Owner," to set forth the terms and conditions under which Racquet Club will permit Unit Owner to make certain alterations to the Common Area of the Racquet Club, and to encroach upon the common areas of that Project for Unit Owner's private use. The parties agree as follows:

1. Property. This agreement pertains to property known as Racquet Club Village located in Park City, Utah, as the same is described and defined in the official Plat of that Project and the CCR's of that Project which are on record in the office of the Summit County Recorder. The specific property within the Project is shown on the attached copy of a portion of the Plat which has been signed by both Racquet Club and Unit Owner, and which is a part of this agreement. Generally, that area within the Project that is covered by this agreement consists of the airspace and deck area immediately adjoining Unit # ______of the Project. The property in question is Common Area of the Project, and under the control of the Board of Directors of Racquet Club Village.

2. Lease. Racquet Club agrees to lease to Unit Owner and Unit Owner agrees to lease from Racquet Club the property described above and shown on the attached drawing. Unit Owner will pay Racquet Club the sum of $250.00 for the first five year term of this lease, and thereafter, may renew this lease for successive five-year terms at an annual rate of $1.00 per year, subject to the faithful performance of the requirements of this agreement. During the term of this lease, or any renewal, the leased property shall be treated as part of Unit Owner's Unit, and Unit Owner shall have exclusive possession, subject to the provisions of the CCR's and this lease.

3. Use of Leased Property. Unit Owner agrees to use the leased property for the sole purpose of installing, maintaining and using a hot tub or spa, not to exceed 600 gallons in capacity, and also installing, maintaining and operating the associated filters, heaters and pumps necessary to operate the tub or spa. All utility services will be extended from Unit Owner's Living Unit, and will not cross through other Units. To the extent reasonably necessary to complete the installation as approved, Racquet Club grants all necessary easements across its property for utility services.

Unit Owner, for himself or herself, and for all lessees, guests, licensees and others agrees that the rights under this lease and the use of the hot tub is expressly conditioned upon the following:

A. Users of the hot tub will not cause annoyance to other occupants of the project through noise or lewd or offensive behavior;

B. Reasonable security safeguards will be constructed, maintained and used to prevent the hot tub from becoming an attractive nuisance to others, or an inducement for others to trespass on the property of Racquet Club; and

C. The tub will be maintained in a manner that eliminates, to the extent reasonably possible, the risk of drowning or injury to children or others on the property. All applicable laws and regulations will be complied with.

4. Construction. Unit Owner will submit construction drawings to Racquet Club that are drawn in sufficient detail to identify the space to be occupied and the location of all mechanical equipment, the tub or spa, and utility access routes. Drawings of the type necessary to obtain a building permit from Park City will be sufficient, although Racquet Club agrees to review preliminary sketches to approve the basic design prior to Unit Owner incurring the expense of final construction drawings. All exterior surfaces must be finished in materials and colors that match the adjoining surfaces on the existing structure, unless specific variations are approved by Racquet Club on the final construction drawings. All hot tubs are required to be sunken and not free standing on the deck. The hot tub including cover can not exceed 24 inches above deck flooring. No work may begin until Racquet Club, through agents designated by it from time to time, has signed the final construction drawings. The spa and all associated mechanical equipment must be located and insulated in a manner that will prevent annoying noise, vibration, smoke or odors from being detected from other Units. If installation of hot tub requires the relocation of any sprinkler pipes, the work must be completed prior to September 30th or must wait until the following spring. All hot tubs installed on decks must have gutters and heat tapes installed on roof line by a licensed electrical contractor approved by the HOA, unless waived by the HOA in writing.

5. Permits and Fees. Unit Owner will pay all fees for building permits, impact fees, and other impositions charged by Park City for the construction, and comply with all Park City Building, Health and Fire Codes.

6. Construction Costs. Unit Owner will pay all construction costs associated with the Project, including the costs of repairing any damage that might result from this construction activity to other Units or to Common Areas not covered by this lease. At the option of Racquet Club, Unit Owner agrees to pay the reasonable costs incurred by Racquet Club in having the proposal reviewed by an architect or structural engineer. A refundable deposit of $750.00 is required prior to all work commencing.

7. Contractor's Bonds and Insurance. Because the work to be performed by Unit Owner is within the Common Area of the Project, Racquet Club must be protected from mechanics and materialmen liens. At the option of Racquet Club, Unit Owner will provide a 100% Performance and Material Payment bond, with Racquet Club as the beneficiary, prior to construction commencing. Unit Owner agrees, by signing this lease, to personally guarantee that no liens will attach to the Common Areas of the Project as a result of this construction, and should any such liens be asserted, to promptly discharge them. Unit Owner will, at the option and request of Racquet Club, provide certificates of insurance to Racquet Club showing that the Contractor is covered by Workman's Compensation Insurance, and/or liability insurance in an amount of not less than $500,000 per occurrence.

8. Insurance. Although it is the intention of the parties that the leased areas be insured as a part of Unit Owner's Unit, the addition of this improvement within the leased Common Area may increase the property and liability insurance premiums charged to Racquet Club. Once final construction plans have been approved, and before construction commences, Racquet Club agrees to contact its insurance agent or carrier for a computation of any increase in premiums, whether added as a one time only charge during the period of construction, or as a continuing increase in the costs of insurance. Unit Owner agrees to pay the amount of any increased insurance premiums attributable to this modification of the Common Area as additional rent throughout the term of the lease, or any renewals. Unit Owner will also notify the applicable insurance carriers of the addition to the Unit in writing and provide a copy of that notice to Racquet Club.

9. Maintenance. Once completed according to the approved plans, the exterior surfaces of the building addition will be accepted by Racquet Club as Common Area. All exterior maintenance responsibility, and maintenance of the hot tub and its mechanical equipment, and the interior of any enclosed space will be the sole responsibility of Unit Owner, and Racquet Club will not maintain them. Unit Owner agrees to maintain the addition in the same manner that he is required to maintain the interior of his unit under the terms of the CCR's. All lighting, power, heating and any other utility type services within the addition will be paid for by Unit Owner.

10. Liability to Third Parties. The addition built within the leased areas is located on Common Area of the Project, but by virtue of the lease, has become for all practical purposes, part of the Unit owned by Unit Owner. Unit Owner shall have exclusive possession and control over the leased area, and shall be responsible for it as if it were part of his Unit. Unit Owner agrees to hold Racquet Club harmless, and to indemnify Racquet Club against any and all claims which might arise as a result of personal injuries or property damage occurring within the leased area. This agreement to hold harmless includes payment of reasonable legal fees incurred by Racquet Club in the defense of any-claim, whether suit is filed or not. The indemnity covers injuries to Unit Owner's tenants, guests, or others using the property with Unit Owner's consent, and to injuries to third parties who are trespassers or otherwise, as well. Unit Owner is also liable to Racquet Club and other Unit Owners for any damage due to water leakage or malfunction of the mechanical equipment, the hot tub, or any enclosure.

11. Termination. Upon the termination or expiration of this lease, the hot tub and associated equipment will be removed by Unit Owner and the leased area restored to its condition as it existed prior to the installation, at Unit Owner's expense. In the event of the destruction of the Living Unit, this lease shall terminate immediately, and Unit Owner shall have no rights in the reconstruction or liquidation of the Project except as the owner of the Unit, provided that Unit Owner shall be entitled to any insurance proceeds specifically allocated to the improvements within the leased area. In the event of a violation of any of the terms of this agreement by Unit Owner, Racquet Club shall have the right to terminate this lease by a majority vote of the Board of Directors at any regular or special meeting. Unit Owner will be given notice in writing of the Board's consideration of the lease, and has the right to appear and be heard prior to the vote of the Board. Upon the affirmative vote of the Board of Directors, this lease shall terminate, and Unit Owner will have a period of 30 days to remove the addition and restore the property to its former condition.

12. Access. Racquet Club shall have reasonable rights of access to the leased area, consistent with its rights of access to make repairs within Units as provided in the CCR's. Racquet Club shall- also have such easements in and through the leased area as reasonably necessary to fulfill its duties with respect to the maintenance of Common Areas under the CCR's. Otherwise, Unit Owner's possession is exclusive.

13. Assignment. This lease may be assigned by Unit Owner in conjunction with the sale or lease of his Unit, but shall not be assignable independently of the sale or lease of the Unit. Unit Owner shall have no right to sub-let the leased area, nor shall it be used in any manner other than as an appurtenance to Unit Owner's Unit.

14. Voting Rights. This lease shall not be construed as increasing Unit Owner's percentage interest in the Common Areas, nor as decreasing the percentage interest of the other Unit Owners. Unit Owner's voting percentage, as set forth in the CCR's, is not changed in any way by this lease agreement.

DATED this ______day of ______, ____.

RACQUET CLUB VILLAGE OWNERS ASSOCIATION, by and through its duly constituted Board of Directors

By: ______
Its President


Owner:

Notary Required for Owner Signature:

On , personally appeared before me, .

Notary:

Amended October 2008