The undersigned Member (Members), having signed the Subscription Agreement for membership in _____________________, LLC, hereby acknowledges that he/she has read and agrees to the following Rules and Regulations pertaining to use of the houseboat owned by the LLC.

1. The Annual Maintenance Fee (AMF) for the year 2005 will be $2,600.00 per year. The AMF covers yearly insurance, weekly launch and retrieve services, houseboat and motor annual and preventative maintenance and repairs, weekly sewage pumping, weekly refueling (except for actual fuel costs) and weekly fresh water fill up. Each owner will pay $1,500.00 for subsequent weeks usage in the off season, which covers the launch and retrieve services. Mid winter off-season usage requires and additional $500.00 re-winterization fee.  The AMF shall be paid to Clearwater Yachts, Inc., (the houseboat’s manager) at the same time as the final payment on the Subscription Agreement is made. The AMF shall be due on January 5th of each succeeding year and must be paid prior to the use of the houseboat in any given year. The AMF shall be determined each year based on the previous year's experience. However, in the event that unexpected or unusual expenses cause a deficit in the AMF account, each Member will be assessed their prorata share of the additional expense. Failure to pay the AMF or any other assessments by January 5th of each year (or within 30 days of receiving a statement for the same) will result in the assessment of a $500.00 late payment penalty fee and revocation of houseboat privileges until delinquent fees are paid. If fees become delinquent for more than 90 days, the LLC will offer said member’s week(s) for sale at current market price. Once sold, said member will be reimbursed the sale price less any outstanding dues, fees, age adjustment and/or late interest penalties.

2. Usage of the houseboat will commence each week on Tuesday at 8:00 AM, at which time the Member will complete the check-on procedure with the Unliminted Houseboat Services VIP check-on person. The rest of the Member’s party may not load until the check-on procedure is completed. The houseboat will not be launched until all the weekly maintenance and repairs are done and weather conditions permit a safe launch and departure. The houseboat is to be returned to the Anteloper Point courtesy dock area no later than 8:00 AM on Monday of the following week, at which time UHS VIP Service will board the houseboat in order to perform final check-off procedures. A $200 per hour late penalty fee will be assessed to any Member returning the houseboat after 8:00 AM unless other arrangements with UHS have been made.

3. The undersigned agrees to use the launch, retrieve and pilot service provided by Clearwater Yachts, Inc. UHS will clean the houseboat at the end of each week’s use. Some owners may be charged for cleaning if Aquanuts determines that the cleaning job performed by the owners is not up to the standard we have set.

4. In addition to the AMF, the undersigned agrees to pay _____________, LLC, a $1,350.00 trip deposit ($850.00 for fuel and $500.00 for damages), upon receipt of trip confirmation. Payment may be made by check. When the houseboat is returned, checked out by maintenance personnel, and declared to be sound with no damage or lost articles, the damage deposit will be returned along with the difference, if any, on the fuel deposit. Any lost or damaged items will be subtracted from the $500.00 deposit. Additional charges may be incurred if the value of damaged or lost items exceeds $500.00. Any refund due will be sent to the Member within 10 business days after the end of the trip.

5. Each Member using the houseboat shall go through a checklist provided by Clearwater Yachts, Inc., as to the condition of the houseboat at the time of boarding. The checklist procedure shall be repeated with the UHS VIP service when the trip is completed. Each Member further agrees to identify all necessary as well as any routine maintenance or repairs which may be required on the checklist and review said repairs with the manager. During the week of use, each Member will also complete an Inspection List, detailing anything in need of attention or missing. This list must be reviewed with the check-off person and signed by member and check off person during check off.

6. Any Member unable to use their determined week on the houseboat will use their best efforts to inform Clearwater Yachts, Inc., at least 30 days prior to the scheduled week. This will allow for scheduled repairs and maintenance during the unused weeks if necessary and/or offer the open week to other members.

7. Any unused weeks will be available to any Member on a first request basis. Any additional week’s use must be confirmed by Clearwater Yachts, Inc., and evidenced by a written confirmation. Payment of the trip deposit fee described in paragraph 4 above must be paid in advance. If a Member wishes to use an unsold week in the prime season s(he) agrees to pay Clearwater Yachts Inc. $4,000.00 per week to help off-set fees being carried by Clearwater Yachts Inc. for the unsold weeks. If it is another Member’s week, financial arrangements for compensation of maintenance fees must be made directly with the other Member and Clearwater Yachts Inc.. These fees are outlined in paragraph 1 above and must be paid in full prior to boarding.

8. Under no circumstances will a Member allow the houseboat to be rented or otherwise utilized by any person who is not a Member. Proper identification will be required upon boarding. Violation will result in liability for all damages or losses incurred as a result of the unauthorized use and may result in a restriction on future use by the Member.

9. A Member must be on the houseboat at all times. The maximum number of persons that are allowed on the houseboat at any time is 16 adults. There are 16 adult personal flotation devices (PFD’s) furnished on the houseboat. PFD’s for infants and children are required by Utah and Arizona law and must be provided by each Member using the houseboat.

10. A set of tools and spare parts will be left on the houseboat, which include such items as a spare prop, fuses, belts for engine, etc. The Member agrees that only MINOR repairs will be made and then only if someone on the boat has experience in making such repairs. No MAJOR repairs may be made without prior approval for such said repairs by either Clearwater Yachts, Inc., or an authorized maintenance person.

11. The Member agrees to pay $20.00 per hour for each engine that is used beyond 30 hours per week and $20 dollars per hour for each generator hour over 60 hours per week (80 hours on Beats Working & Just Because). This policy is in place so that Members who use the engines above the "normal" usage will help fund the additional maintenance cost. Normal use will generally not exceed 20/25 on the engines and 50/60 hours per week on the generator unless the generator is run almost continuously or you do a lot of cruising up and down the lake in the house boat vs. using your ski boat.

12. The marine radio will be on the houseboat and must be functional at all times during use of the houseboat. The radio must be set to monitor channel 16 for UHS at all times.

13. The Member will ensure the safety of all individuals on the houseboat and agrees to operate the houseboat at his/her own risk. The Member further agrees to hold Clearwater Yachts, Inc., ______________, LLC, as well as all other Members harmless and further agrees to indemnify them from any and all claims of whatsoever type, including but not limited to, accidents, damage to property, or injury that may occur as a result of the Member’s use of the houseboat.

14. The Member agrees to pay any insurance deductible payments ($2,500) required by the houseboat’s insurance policy as a result of any damage claim to the houseboat or its contents that may occur as a result of the Member’s use of the houseboat.

15. The Member agrees to give full and complete cooperation at all times to National Park Service and Marina personnel and further agrees to comply with all authorized rules and regulations of such personnel and/or agencies.

16. In the event that a Member desires to sell his/her membership interest in __________________, LLC, he/she will first notify Clearwater Yachts, Inc., in writing of his/her intent to sell. The other Members are granted an option, on a first come first serve basis, for a period of sixty (60) days after receipt of the notice. If another Members does not exercise the right to purchase within the sixty (60) day period, the Membership interest may be offered to a third party.

17. NO PETS ARE ALLOWED ON THE BOAT and NO SMOKING IS ALLOWED IN THE CABIN. Any violation of this provision may result in the loss of the trip security deposit.