NOTE: The statements contained herein are only summary in nature. A prospective purchaser should refer to
all references, exhibits hereto, the sales contract and the cooperative documents.

A cooperative is that form of ownership of real property created under The Cooperative Act wherein title to the property is vested in a corporation. Individuals then purchase a membership share in the Corporation and receive a long-term lease or other evidence of title to an individual lot within the cooperative.

A proprietary lease is the lease from the cooperative corporation that gives you the exclusive use of the unit on which your home is located.

The proprietary lease guarantees the exclusive use of your unit, provided that you pay the annual assessments established by the board of directors and you abide by the covenants of the cooperative.

I will be a Shareholder in Drop Anchor MHOA, Inc, which means that I will own 1/67 of all the assets of the Corporation. I will have a long term lease of the unit (plot of land that I have exclusive use of) and I will own the dwelling and any other improvements placed on the unit (such as a shed).

The present obligation is an annual assessment. All resident owners pay an annual assessment in an amount that represents their proportionate share of the cost of maintaining and operating the mobile home community and which includes an amount set aside for reserves for repair and replacement of the common elements.

In a cooperative the individual may sell his membership certificate or share and the rights that go with that membership and assign his proprietary lease (memorandum of occupancy) to the purchaser. The Secretary must be notified first and given notice, including the sale price. Upon receipt of the notice, the Secretary will electronically transmit the notice to all Shareholders (and post the notice on the Drop Anchor MHOA webpage and post a notice on the bulletin board in the Meeting Room. Drop Anchor requires that prospective purchasers be approved by the Board of Directors of the cooperative. (See Rules, Regulations and Procedures #1, Section 3).

TA board of directors is elected by the members/shareholders. The board of directors is responsible for the running of the association and the maintenance of the common elements of the property. The board of directors is given specific duties under the articles of incorporation and bylaws. Cooperative laws also have
requirements that must be adhered to by the board of directors.

All owners are jointly responsible for payment for the maintenance of the common elements. Responsibility for maintaining the common properties is vested in the board of directors of the corporation to which all members belong. Day to day administration of property maintenance may be handled either by the board of directors or turned over to a professional management agent who is directed by the board of directors.

A resident owned community is not required to hire a licensed manager if the day to day administration and property maintenance is handled by the board of directors, by committees of residents that report to the board of directors or by subcontractors who are hired by the directors; however, if a management company
is employed, a licensed manager is required where there are more than 10 units or where the total of all the budgets is in excess of $100,000.

No. The corporation can make a profit; however, in a not-for-profit corporation no part of that income can be distributed to the members. While no dividends may be paid, the profits can be used to pay down the debt, create capital for improvements and provide for lower maintenance fees.

No. Not-for-profit corporations must file an income tax return just as for a for-profit corporation.

The owner of each membership certificate shall be entitled to one vote. If an owner owns more than one membership certificate, he shall be entitled for one vote for each certificate. Each membership certificate’s vote shall not be divisible.

The Lessee shall not, without the written consent of the corporation, occupy or use the unit or permit the same or any part thereof to be occupied or used for any purpose other than as a private dwelling for the lessee or members of the lessee’s family, but in no event shall more than two persons, one of whom must be at least fifty-five and the other at least forty-five years of age or older permanently reside in the unit without the written consent of the board of directors. No guests may occupy the unit unless one or more of the permitted residents are then in occupancy or unless consented to in writing by the board of directors.

The assessment is $1,210.00 per unit per year. It is paid in full, annually, due January 1.

No.

No. Use fees for recreational and other commonly used facilities are included in the annual assessment.

There is not a boat dock available for every unit in the Park. After becoming a member of the Cooperative AND a qualified resident, a boat dock, if available, is obtained by submitting a request in writing to the Dock Master. Docks will be assigned on a first come basis first serve basis. If a dock is not available your name will be placed on a waiting list for the next available dock.

All dock assignees are limited to a boat of 22 feet or less in length and 8 ½ feet or less in width. No business can be run from the dock such as, but not limited to, any type of guide service for fishing or tours of any kind. The docks will not be leased.

No.

Yes. Drop Anchor Mobile Homeowners Association is financially sound.

Yes. A prospective buyer must submit to the President, Secretary, or Assistant Secretary, a completed Buyer Application Form for Cooperative approval. The application will be circulated to the board members who will have a minimum of seven (7) days to examine the application. The Board may, at its discretion,
order a background check of the applicants. Upon acceptance of the application and background check, a meeting of the board will be scheduled for the purpose of interviewing the prospective buyer if the board is currently in residency at Drop Anchor and not on summer hiatus.

The lessee will receive official notice of any such violation in writing. The Lessee is given a specific amount of time to cure such violation, after which, if the violation is not cured, it becomes a breach of said Rule, Bylaw or the Lease. Article14 of the Lease states “Breach of a Rule shall be a default under this Lease.” This letter shall serve as notice of said breach and to advise you, that, according to our Lease, you
have thirty days from the date of this letter to cure the default. If at that date, the default is not cured, Florida Statue 719 (The Cooperative Act) provides for the
Association to levy a fine. The amount of the fine will be $100.00 per violation (day), not to exceed $1000.00 in the aggregate (Re. Chapter 719.303). If the violation remains uncured the matter will be referred to the Associations legal firm. Any expenses incurred by the Corporation including reasonable attorney’s fees and disbursements (appellate fees and costs, if any) shall be charged to the Lessee by the Corporation, which charges shall bear interest at the legal rate until paid in full and, if unpaid for thirty days, the Association shall have a cause of action for damages against the Lessee.

The present obligation is an annual assessment. All resident owners pay an annual assessment in an amount that represents their proportionate share of the cost of maintaining and operating the mobile home community and which includes an amount set aside for reserves for repair and replacement of the common elements.