Sunsport Principles and Objectives

SUNSPORT PRINCIPLES AND OBJECTIVES

revised January 2004

As stated in the Shareholders' initial Expression of Interest: "Our main objective is to preserve Hugo Foresters dream of a nudist resort known for its natural tropical beauty. We see Sunsport as a caring, comfortable community in which members and visitors can relax, play and participate in a variety of sports in a healthful and safe environment."

Sunsport members, guests, and staff should be treated fairly and with respect by management. Key to this is good communication, listening openly and speaking clearly. All people should be treated equally and consistently, regardless of their popularity. The diversity of people should be recognized and appreciated.

Sunsport is a place for healthy living. Facilities must be kept clean and in good working order, particularly restrooms. Resorts are judged first by their cleanliness. The regulation against smoking in buildings, including the pavilion, must be enforced. Second hand smoke is a dangerous health hazard. Some people cannot tolerate being near cigarette smoke.

Sunsport is a place comfortable for families. Overt or suggestive sexual behavior and drunkenness in public should not be tolerated. Sunsport will not obtain a license for distribution of alcoholic beverages as the distribution of them tends to affect the atmosphere. In the past such distribution has lead to use of inappropriate language around the pool, fights and police calls. Also, such a license would increase Sunsport's insurance rates and lead to liability in case a person had an automobile accident after receiving drinks.

The contributions of staff members and volunteers should be recognized. Finances permitting, it should be a priority to increase staff wages and benefits. Input from staff and volunteers should be considered in decision making.

Increasing members and use by visitors is important. Expanding the number of sites with hook-ups and adding rental facilities are priorities as County permitting allows. A budget for advertising should be established. Special rates for young adults and advertising in college newspapers might be considered. A focus should be increasing the attendance of Palm Beach County residents during the summer months. Hosting special events increases exposure, attendance and revenue.

Increasing the number of young adults and children at Sunsport is important. They should be welcome to enjoy common areas at all times. Parents are responsible for the appropriate behavior of their children. Parents will not be asked to choose between being with their children and participating in Sunsport activities. All activities in common areas at Sunsport should be appropriate for families.

Management is expected to operate Sunsport at a profit and maintain clear records of expenditure, revenue and cash flow, organized into useful categories with monthly totals. These records should always be available to directors and shareholders. It is anticipated that all profits will be reinvested into the development of Sunsport for the foreseeable future.

Facilities should be operated in an attractive, safe, and functional manner. Particular attention should be devoted to common recreational areas such as the pool, hot tub, tennis and volleyball courts, and children's play equipment. The restaurant should provide appetizing and healthful meals, including low fat/low calorie and vegetarian options, in a clean and comfortable environment.

Members and visitors are expected to abide by accepted naturist etiquette. Members and visitors may be excluded from the grounds for failure to pay established fees after due notice, serious or repeated violations of Sunsport's posted regulations, or the breaking of state laws while on Sunsport property.

The Social Club is appreciated and encouraged to plan social activities for members and visitors. All such activities must be approved by the Manager and must be consistent with Sunsport policies and regulations.

An Ecology Committee made up of experts in South Florida vegetation will design and oversee and ecologically sound program to increase desirable wildlife and to replace illegal plant species with native trees and bushes. The committee must approve the removal of any legal tree or large bush.

The Board of Directors is responsible for the daily operation of Sunsport and should act collectively. Specific responsibilities include: Maintaining a profitable operation, establishing a budget, hiring, supervising, and terminating staff, authorizing expenditures, setting rates and fees, maintaining the grounds and facilities, issuing and terminating memberships, assigning campsites, implementing public relations and publicity. It is expected that the Directors will delegate much of the responsibility to a Manager. In particular, the manager should have responsibility for office management and for daily staff assignments and communications. Shareholders should be consulted in decisions likely to have an impact on the philosophy and long term goals and objectives of Sunsport. Expenditures over $10,000 should be approved jointly (at least informally) by the Shareholders and Directors. Directors serve at the pleasure of the Shareholders and are responsible to the Shareholders.

Shareholders are responsible for establishing the policies and long term goals and objectives of Sunsport. Shareholders may divide areas of oversight in regards to policies and long term goals among themselves. Shareholders may undertake specific projects at the request of the Directors or the Manager. However, all expenditures must be authorized by the Directors or their designee. (Shareholders must also approve expenditures over $10,000.) The Shareholders will not intervene in supervision of the staff, except that shareholders may interact directly with the Manager. Shareholders will not become involved with daily operations unless they feel that a gross violation of policies or long term goals has occurred.