INDIAN LAKE CLUB, INC. WATER UTILITY POLICY

The following Water Utility Policy has been adopted by the Indian Lake Club, Inc. Board of Directors on
August 16, 2001.

ARTICLE  I – GENERAL

Sec. 1        Scope of Provisions

All pertinent provisions of this policy are hereby made a part of the terms and conditions whereby Indian
Lake Club, Inc. (hereafter known as ILC) furnishes water service to any property within Indian Lake
Estates.  A Water Management Company may be selected by the Board of Directors to operate and
manage the community water system on behalf of Indian Lake Estates (hereafter referred to as ILE)
property owners.

Sec. 2        Liability for Damage

ILC shall not be liable for any damage to the property of any consumer of water service furnished by ILC
except when such damage is due to the negligence of ILC.

Sec. 3        Right to Temporarily Interrupt Service

ILC reserves the right to cut off any utility service without notice in case of emergencies.  When an
interruption in service is necessary for maintenance and improvement to the utility system, affected
customers will be notified as circumstances permit.

Sec. 4        Waste of Water Prohibited

No person receiving water from the waterworks of ILC shall allow the water to be wasted at any draft, spigot,
standpipe, water closet, or otherwise.

Sec. 5        Maintenance of Pipes

Water service consumers shall keep their pipes and fixtures in good repair, and shall be responsible for all
costs associated with a leak occurring within their property lines.

ILC would be responsible for all costs associated with a leak within community or public property.  If there is
an existing shut-off valve at the property line, the valve location will determine who is responsible.  If there is
no shut-off valve, then the property owner will be responsible if the leak originates within their property lines.

Sec. 6        Application for Service  

Application for water hook-up shall be made directly to the Water Management Company.

Sec. 7        Tampering with Water Lines

No main line water valve shall be shut off before contacting the Water Management Company.
Homeowners are responsible for knowing the location of their property shut-off valve.

Sec 8   Winterizing Homes

Due to the extreme cold weather or power failures, each service connected to the system which is not in
active use through the winter shall have water turned off, both at street shut-off valve and the house shut-
off valve.   If no street shut-off valve exists, then the water should be turned off at the house shut-off valve.
The home should be winterized, as well.  Any expenses due to a broken private property water line will be
charged to the homeowner.

ARTICLE II – RATES AND CHARGES
Sec. 1   As Determined by ILC

ILC Board of Directors shall determine the fees imposed for the water service furnished to consumers or
users thereof.

Sec. 2        Payment of Rates and Charges

The cost of the water service is part of the Annual Assessment, Operations.

Sec. 4        Tap-In Fees

Fees will be paid directly by consumer to the Water Management Company.
See Article I, Section 6 and Article III, Section 2.

ARTICLE III – CONNECTION TO WATER

Sec. 1        Connections from Outside

No connection of any water line or system outside ILC shall be made to any part of  ILC water system.  The
ILC water system exists exclusively for use within ILE by participating property owners.  Any connection to
properties outside of ILE is prohibited.

Sec. 2         Tap-In

A tap-in is a line from the main water line to the shut-off valve on homeowner property.  This tap-in,
including the shut-off valve, must be made by the Water Management Company.

Sec. 3        Household Connection

The homeowner shall be responsible for the hiring of a licensed plumber to connect the house to the water
system shut-off valve.

Sec. 4        Connections to Remain Property of ILC

All pipes and other equipment furnished and used by ILC in installing any water connection shall be and
remain the property of ILC.

ARTICLE IV – WATER CONSERVATION

Sec. 1        Purpose

A water shortage shall be deemed to exist when water demand by customers connected to the water system
reaches the point where continued or increased demand will equal or exceed the system supply and
transmission capabilities. When demand results in the condition where customers cannot be supplied with
water to protect their health and safety, then the demand must be substantially curtailed to relieve the water
shortage.

In the event it appears that water demand on ILC’s water system may exceed supply and transmission
capabilities, the Water Management Company may initiate voluntary water conservation guidelines (Stage
I), notify the ILC Board of Directors, and communicate such guidelines to homeowners.

Sec. 2        Stage I – Voluntary Guidelines

Such guidelines will include but not be limited to:

a.        Limiting vehicle washing to a minimum.
b.        Limiting lawn and garden watering to that which is necessary for plants and lawn to survive.
c.        Eliminating unnecessary outside washing, such as decks, sidewalks, driveways, etc.
d.        Reducing any in-house water usage wherever possible.
e.        Temporarily delaying any new landscaping which will require water.
f.        Encouraging the use of disposable and biodegradable dishes to avoid unnecessary dishwashing.

If the water shortage becomes more severe and additional steps appear to be necessary, the Water
Management Company will immediately notify the ILC Board of Directors.  The Board will then have the
option of creating mandatory water conservation rules (Stage II), and communicating such rules to
homeowners.

Sec. 3        Stage II – Mandatory Rules

Such rules may include, but not be limited to, the following:

a.        Prohibiting any vehicle washing.
b.        Prohibiting, or severely limiting, lawn and garden watering.
c.        Emphasizing the need to reduce all in-house water usage including toilets, dishwaters, clothes
washers, showers and baths, etc.

Sec. 4        Lifting of Restrictions

Consumers shall be notified of the expiration, cancellation, or change of any of these guidelines or
restrictions.

Board Approved Revision – March 2011