release and indemnity agreement

KEY NO._________________

LAKE AUSTIN LAKE POINTE HOMEOWNERS ASSOCIATION, INC.

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ACKNOWLEDGEMENT AND RELEASE

This Lake Austin Lake Pointe Homeowners Association, Inc. Acknowledgment and Release (the “Release”) is with the undersigned individuals (the “Homeowners”) who have purchased or are purchasing a home in the Lake Pointe Subdivision (the “Subdivision”) in Travis County, Texas. As such, the Homeowners are or will become members of Lake Austin Lake Pointe Homeowners Association, Inc. (the “Association”), which entitles them and their family members and guest to use the “Common Areas” according to that certain Lake Pointe Declaration of Covenants, Conditions and Restrictions dated June 29, 1995, recorded in Volume 12474, Page 1631 of the Real Property Records of Travis County, Texas (the “Declaration”), which Declaration is incorporated herein by this reference.

Additionally, pursuant to a Recreational License Agreement executed by West Travis County Municipal Utility District Number 5 (“MUD 5”) and the Association, and a Roadway License Agreement executed by Southwest Travis County, Ltd. (“STC”), MUD 5 and the Association, each of which is recorded with the Travis County Clerk, licenses have been granted to the Association for the following purposes:

(a) Use of a footpath (the “Footpath”) crossing property owned by MUD 5 (the “MUD Property”) for recreational hiking and for access by foot between the Subdivision and a portion of the MUD Property on and along the shores of Lake Austin which is designed as “Lake Pointe Park” (herein so called);

(b) Observation and photography of wildlife on the MUD Property;

(c) Use of a primitive, unpaved roadway (the “Roadway”) crossing the MUD Property and property owned by STC (the “STC Property”) for access by foot or four-wheeled motor vehicle between the Subdivision and Lake Pointe Park; and

(d) Use of Lake Pointe Park for general recreation purposes and for purposes ancillary to swimming, boating, skiing and other recreational activities on Lake Austin.

The MUD Property, the Roadway and Lake Pointe Park are herein called the “Licensed Areas.” The Licensed Areas are shown on the map attached Exhibit A. Simultaneously with the execution and delivery of this Acknowledgment and Release, the Homeowners are to receive from the Association a written Sub-License (herein so called) which entitles the Homeowners and their family members and guests to use the Licensed Areas subject to certain terms and restrictions governing such use.

As a condition imposed by the Association to the delivery of the Sub-Licenses and the delivery of a key permitting entry to the Swimming Pool, the Homeowners acknowledge and agree as follows:

1. Beneficiaries. This Release is given for the benefit of the following parties (the “Beneficiaries”): (a) Bon-Terre-B, Ltd., who is one of the developers of the Subdivision; (b) STC, who is the owner of the STC Property; (c) MUD 5; (d) Scott Felder Limited Partnership, Ryland Homes, Clark Wilson Homes, Inc., Highland Homes, Brighton Homes and D.H. Horton who are builders of homes in the Subdivision; (e) the Association; and (f) Liddiard Management Company, who is manager of the Common Areas for the Association.

2. Common Area Agreements. The Homeowners, for themselves, their family members and guests, acknowledge and agree as follows with respect to the Common Areas:

(a) The Homeowners and the family members and guests shall adhere to all rules and regulations governing use of the Common Areas which may be promulgated by the Association from time to time

(b) The Homeowners understand that a swimming pool is hazardous to those who have not been trained to swim or whose condition renders them unable to swim capably, and that a fence (including a locked gate) has been placed around the swimming pool in order to prevent such persons from having access to the Swimming Pool;

(c) The Homeowners will not allow anyone else to use the Homeowners’ Key or membership card in order to gain access to the Swimming Pool except immediate family members of the Homeowners who are over the age of 18. Any guests of the Homeowners using the Swimming Pool shall be accompanied by one or both of the Homeowners. The Homeowners will not cause their key or membership card to be duplicated or allow anyone else to duplicate the key or membership card;

(d) Neither the Homeowners nor their family members or guests will tamper with the lock on the gate, prop the gate open, or take any other actions which would allow free access to the Swimming Pool by any person;

(e) No diving into the water shall be permitted as the Swimming Pool;

(f) The Common Areas will remain open and unsupervised, and none of the Beneficiaries has a duty or responsibility for the security of the Common Areas or the safety or protection of any persons using same. EACH USER OF THE COMMON AREAS UNDERTAKES SUCH USE AT HIS/HER OWN RISK. In particular, without limiting the foregoing, no lifeguard will be stationed at the Swimming Pool, and all swimming is undertaken by each person without any expectation that any Beneficiary will be responsible for protecting that person’s safety or well-being. The Beneficiaries are not responsible for any injuries or damages of any kind that the Homeowners (or their family members or guests) may incur as a result of any condition of the Common Areas. The Homeowners shall at all times be fully responsible for assuring the safety and well-being of their family members and guests while using the Common Areas.

3. Licensed Area Agreements. The Homeowners, for themselves, their family members and guests, acknowledge and agree as follows with respect to the Licensed Areas:

(a) The Homeowners and their family members and guests shall comply with all terms and restrictions set forth in the Sub-License regarding use of the Licensed Areas;

(b) Any guests of the Homeowners using the Licensed Areas shall be accompanied by one or both of the Homeowners. The Homeowners will not allow any family member under the age of 16 to use the Licensed Areas unless such family member is accompanied by one or both of the Homeowners.

(d) The Beneficiaries are not responsible for the safety, security or maintenance of any of the Licensed Areas. Use of the Licensed Areas is permitted purely as a convenience to the Homeowners and their families and guests, and none of the Beneficiaries has or assumes a duty to protect anyone from injury to person or damage to property occurring on or around the Licensed Areas. The Homeowners acknowledge there may be certain inherently dangerous conditions associated with traversing or using the Licensed Areas. (For example, the Footpath is a dirt trail and the Roadway is a primitive, unpaved road which may both be slippery, especially after it rains. The Roadway has blind curves and steep drop-offs, and may have inadequate site distances. Reptiles and other wildlife, some of which may be dangerous, may be found in around the Licensed Areas. No security personnel or lifeguard will be provided at Lake Pointe Park, and no attempt has been made by any of the Beneficiaries to cause any area in or around Lake Austin to be made safe for swimming, boating, skiing or other activities.) The Beneficiaries are not responsible for any injuries or damage of any kind that the Homeowners (or their family members or guests) may incur as a result of any condition of the Licensed Areas. The Homeowners shall at all times be fully responsible for assuring the safety and well-being of their family members and guests while using the Licensed Areas. EACH USER OF THE LICENSED AREAS UNDERTAKES SUCH AT HIS/HER OWN RISK.

4. Release. The Homeowners hereby release the Beneficiaries from any and all causes of action, claims, demands, liabilities, obligations, damages, and expenses arising out of the use, for any reason, of the Common Areas or the Licensed Areas. SUCH RELEASE SHALL APPLY TO EACH BENEFICIARY EVEN IF THE SUBJECT MATTER THEREOF IS CAUSED OR ALLEGED TO HAVE BEEN CAUSED BY THE NEGLIGENCE OF SUCH BENEFICIARY. However, such release shall not apply to a Beneficiary to the extent the subject matter thereof is caused or alleged to have been caused by the gross negligence or willful misconduct of such Beneficiary.

5. Indemnity. The Homeowners agree to defend, indemnify, and hold harmless the Beneficiaries from and against all causes of action, claims, demands, liabilities, obligations, damage and expenses (including, without limitation, reasonable attorney’s fees) imposed upon, asserted against or incurred by the Beneficiaries and arising out of the use of the Common Areas or Licensed Areas by the Homeowners or their family members or guests.

6. Successors and Assigns. The Homeowners execute this Acknowledgment and Release on behalf of themselves and their respective heirs, executors, administrators, and assigns. This Acknowledgment and Release shall inure to the benefit of the Beneficiaries and their respective successors and assigns.

The Homeowners have executed this Acknowledgment and Release on the respective dates set forth below.

HOMEOWNERS:

Ö______________________________________ Ö____________________________________

Name (PRINT): Name (PRINT): _______ _

Address: ___ Address: _ ______ _

Phone: ______ Phone: _ _____ _

List the names of all family members (and the year of birth if the family member is 18 or under) who will be using the Common or Licensed Areas.