RECIPROCAL AGREEMENT BETWEEN. Sun Lakes Homeowners Association #2 (SL 2) and Sun Lakes Country Club Homeowners Association (SL 1)

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Reciprocal SL2 & SL1 1/26/07 RECIPROCAL AGREEMENT BETWEEN Sun Lakes Homeowners Association #2 (SL 2) and Sun Lakes Country Club Homeowners Association (SL 1) INTRODUCTION TO RECIPROCAL AGREEMENT The purpose of this agreement is to foster good neighbor relations between the Sun Lakes communities. Any portion of this agreement may be modified, amended or canceled by a majority vote of either Board of Directors upon a 30 day written notice to the other Board of Directors. This agreement is for the benefit of SL 1 & SL 2 HOAs. For the purpose of this agreement a guest is an individual(s) who is accompanied by a homeowner. Renters assume homeowner usage rights when the homeowner formally notifies the HOA and relegates his rights to the renter. Where noted, priority is given to homeowners of the facility being used(i.e., when SL 1 members are using certain SL 2 facilities/amenities, SL 2 members have priority for usage; when SL 2 members are using certain SL 1 facilities/amenities, SL 1 members have priority for usage). Homeowners are required to show proof of current membership upon request. ARTS & CRAFTS PROGRAMS/CLASSES Arts & Crafts programs and classes are open to all SL 1 and SL 2 homeowners on a space available basis with priority given to the homeowners of the facility being used. Guests are not allowed. BILLIARD ROOMS Billiard rooms are open to all SL 1 and SL 2 homeowners and their guests on a space available basis with priority given to the homeowners of the facility being used. BANQUETS & PRIVATE PARTIES SL 1 and SL 2 homeowners and their guests may use each other s facilities for banquets or private parties. All banquets or private parties in SL 2 facilities require a SL 2 homeowner sponsor for the event, with the sponsor being responsible for the reservation and arrangements, payment of all fees, behavior of guests and any related property damage, and must be in attendance at the entire event. 7/30/2007

BOCCE BALL COURTS Each association has its own courts. Players from the other association may play by invitation only. BULLETIN BOARDS Each association provides equal bulletin board space for the other association s use for promoting events and activities sponsored by that association and its sanctioned clubs. All material, forwarded from one association to the other for placement on the receiving association s bulletin board, will be given to the recipient association s Recreation/Activity Director for review, approval, and posting. Both SL 1 and SL 2 reserve the right to review, reject, or remove any material placed on their respective bulletin boards by the other association, and agree to notify that organization of such action. CARD ROOMS Any SL 1 or SL 2 homeowner can reserve the Grand Slam card room in SL 1. The Royal Flush and Double Run card rooms are not to be reserved. They are used on a first come, first served basis. Men s (A 2) and Women s (A 3) card rooms can be reserved at SL 2. At least one player must be from the association where the card room is located. FITNESS CENTERS Each Association has its own health/fitness center that can only be used by its own homeowners. No one under age 19 is permitted in the facilities. GOLF ANNUAL/ASSOCIATE CLUB MEMBERSHIPS SL 1 and SL 2 retain the right, but not the obligation, to sell Annual/Associate Golf memberships to each other's members under terms and conditions set by the HOAs from time to time. Annual/Associate golf memberships are to be offered on a year by year basis. GOLF COURSES Members of SL 1 shall be allowed to play at the Cottonwood or Palo Verde golf courses on a time/space available basis at established rates. Members of SL 2 shall be allowed to play at the Sun Lakes 1 golf course on a time/space available basis at established rates for reservations made the day of play. Prior day s reservations pay guest rates. 2 7/30/2007

Members of each Association will be allowed to bring guests, who are charged established rates. GOLF CHIPPING GREENS SL 1 s chipping green is open only to SL 1 homeowners, their guests and Associate/Annual Golf members. SL 2 s chipping green is restricted to SL 2 homeowners and SL 1 homeowners who have purchased a SL 2 annual golf membership. GOLF DRIVING RANGES Driving ranges are open to all SL 1 and SL 2 homeowners and their guests. GOLF PITCH AND PUTT The Pitch and Putt course at SL 1 is available to SL 1 and SL 2 homeowners and their guests. Guests of a SL 2 homeowner may use the SL 1 Pitch and Putt course when accompanied by a SL 2 homeowner. SL 2 homeowners and guests may use the SL 1 Pitch and Putt course except during the following black out dates and times: prior to 3:00 PM for the period beginning the Sunday before Thanksgiving and ending on the Sunday following Easter. During this black out period, SL 2 homeowners and their guests are welcome to use the SL 1 Pitch & Putt Course on a daily basis from 3:00 PM until closing. GOLF PRO SHOPS The Pro Shops are open to all SL 1 and SL 2 homeowners and their guests. HORSESHOE PITS SL 1 horseshoe pits are open to all SL 1 and SL 2 homeowners and their guests. Equipment is available at the SL 1 Pro Shop. SL 2 horseshoe pits at Sisk Park are open to all SL 1 and SL 2 homeowners and their guests. SL 2 horseshoe equipment is stored in a locked cabinet at Sisk Park, and a key may be picked up and returned at the Cottonwood Resource Center. LAKES Members of SL 1 and SL 2 may fish in each other s lakes within the rules established by the respective associations. In SL 1, a fishing permit is required and can be obtained at the SL 1 clubhouse. Only SL 1 homeowners may bring pets to SL 1 lakes and common areas; Only SL 2 homeowners may bring pets to SL 2 lakes and common areas. 3 7/30/2007

LAUNDRY ROOM All residents of SL 1 and SL 2 are entitled to use the laundry room in SL 1. There are walled in outdoor clotheslines available as part of this facility. LIBRARIES The libraries are open to all SL 1 and SL 2 homeowners. No monitoring is done and most books are taken on the "honor system". MEETING ROOMS Meeting rooms can be used by all SL 1 and SL 2 homeowners on a space available basis, with priority given to homeowners of the facility being used. LOUNGES/BARS All SL 1 and SL 2 lounges/bars are open to SL 1 and SL 2 homeowners and their guests. All lounge/bar patrons at SL 1 and SL 2 facilities must provide proof of current membership upon request, prior to being served alcoholic beverages. OUTDOOR POOLS SL 1 and SL 2 homeowners, but not their guests, may use each other s outdoor pools, with the exception of the SL 2 lap pool which is restricted to SL 2 homeowners only. The children s pool in SL 2 is available to SL 1 and SL 2 homeowners and their guests. Children who are guests of a SL 1 homeowner may use the SL 2 children s pool when accompanied by a SL 1 homeowner. SL 1 homeowners and guests may use the SL 2 children s pool except during the following black out dates and times: prior to 3:00 PM for the period beginning the Sunday before Thanksgiving and ending on the Sunday following Easter. During this black out period, SL 1 homeowners and their guests are welcome to use the SL 2 children s pool on a daily basis from 3:00 PM until closing. PARKS & PICNIC AREAS All SL 1 and SL 2 homeowners may use the facilities and amenities at the SL 2 Sisk Park. Reservations by SL 1 homeowners for use of the Sisk Park Ramada can be made through the SL 2 Recreation Department, no more than three (3) months in advance and under terms and conditions set by SL 2 from time to time. Participation by SL 1 homeowners in an organized putting club that utilizes the Sisk Park putting green is subject to terms and conditions set by SL 2 from time to time. SL 1 and SL 2 homeowners may use the SL 1 clubhouse and Oasis picnic areas. No reservations are permitted. Use is on a first come, first served basis. Only SL 1 homeowners may bring guests to the Oasis. 4 7/30/2007

RECYCLE Homeowners of SL 2 may bring their recycle items to SL 1 s Recycle Center. These items include: paper, shredded paper, cardboard, and aluminum cans. No phone books and no plastic. Only the above items are accepted. RESTAURANTS All SL 1 and SL 2 restaurants are open to SL 1 and SL 2 homeowners and their guests. All restaurant users at SL 2 facilities must provide proof of current membership upon request. SL 2 reserves the right to restrict restaurant reservations on occasion. SHUFFLEBOARD COURTS SL 1 shuffleboard courts are available to SL 1 and SL 2 homeowners and their guests on a space available basis. SOCIAL EVENTS Social events are open to all SL 1 and SL 2 homeowners. The sponsoring association may impose priority in the form of advanced or restricted ticket sales or price differentials for special events. TENNIS CLUBS SL 1 homeowners may join the Cottonwood Tennis Club and SL 2 homeowners may join the Sun Lakes I Tennis Club, and the respective homeowners may play during the respective clubs reserved tennis court timeframes and events in accordance with the respective clubs rules and Associations rules. Membership in each club is based on space availability and approval of the respective club. TENNIS COURTS SL 1 and SL 2 homeowners have use of their own tennis courts. Priority for scheduled use of the courts is given to the SL 1 and SL 2 Tennis Clubs. SL 1 homeowners and guests may play on SL 2 courts, and SL 2 homeowners and guests may play on SL 1 courts during open play time as long as one player per singles and two players per doubles are homeowners from where the courts are located. WOOD SHOP Use of the wood shop in SL 1 is strictly limited to SL 1 homeowners. No guests are permitted. 5 7/30/2007

ACKNOWLEDGEMENTS The signatures below acknowledge that the Board of Directors of Sun Lakes Country Club and Sun Lakes Phase #2 Homeowners Associations have voted to accept the terms of this agreement. President President Sun Lakes Country Club Sun Lakes Phase #2 Homeowners Association Homeowners Association David Lasher Nancy Pannebecker Date:_1/30/07 Date: 1/26/07 6 7/30/2007