HAMMOCK BEACH ESTATES HOME OWNER’S ASSOCIATION, Inc.

Ballot. Proposed Amendments to the By-Laws

Indicate your vote on each amendment by placing an X on the line in front of either For or Against

(Additions to text are indicated by bold underline; deletions by strikethrough)

Proposed Amendment One: Amend Section 2.2 as follows:

2.2 A Quorum at members’ meetings shall consist of the owners of a majority thirty per cent (30%) of the units, and decisions shall be made by the owners of a majority of the units represented at a meeting at which a quorum is present, except where approval by a greater number is required by the Declaration, the Articles of Incorporation, or the By-Laws. The joinder of a member in the action of a meeting by signing and concurring in the minutes thereof shall constitute the presence of such persons for the purpose of determining a quorum.

_____ FOR _____AGAINST

Proposed Amendment Two: Amend Section 2.3 as follows:

2.3 Proxies. Voting. Votes may be cast in person or by proxy. Votes for the election of directors and amendments to the Declaration, the Articles of Incorporation, or the By-Laws of the Association shall be cast in person or by absentee ballot only. Votes on all other matters shall be cast in person, by absentee ballot, or by proxy. Proxies shall be valid only for the particular meeting designated thereon and must be filed with the secretary before the appointed time of the meeting.

_____ FOR _____AGAINST

Proposed Amendment Three: Amend Section 4.2 a. as follows:

a. Election of directors shall be held annually and concluded at the Annual Members’ Meeting

_____ FOR _____AGAINST

Proposed Amendment Four: Amend Section 4.2 b. as follows:

b. A Nominating Committee of three (3) members shall be appointed by the Board of Directors not less than thirty (30) ninety (90) days prior to the Annual Members’ Meeting. The Committee shall nominate one person for each director to be elected. Nominations for additional directorships created at the meeting shall be made from the floor, and other nominations may be made from the floor. The Committee will draw up the procedures and rules for conducting the election and submit them to the Board for its approval not less than sixty (60) days prior to the Annual Members’ meeting. At least one member of the Committee will be a member of the Board of Directors. The Chair of the Committee will be decided upon by a vote of Committee members at its first meeting.

_____ FOR _____AGAINST

Proposed Amendment Five: Amend Section 4.2 c. as follows:

c. The-elections shall be by ballot (unless dispensed by unanimous consent) and by a plurality of the votes case, each person voting being entitled to cast his vote for each as many nominees as there are vacancies to be filled by the remaining directors. Voting shall be by absentee ballot received before the commencement of the Annual Members’ Meeting or by ballot cast in person at the Annual Members’ Meeting. Only a plurality of the votes cast shall be required for election. Each person voting shall be entitled to vote for as many nominees as there are vacancies to be filled. The ballot shall provide for write-in votes.

_____ FOR _____AGAINST

Proposed Amendment Six: Amend Section 4.3 as follows:

4.3 The term of each director’s service shall normally be for two years and shall extend until the next annual meeting of the members and subsequently until a successor is duly elected and qualified or until he is removed in the manner elsewhere provided. However, three directors shall be elected for a term of two years at the first Annual Members’ Meeting following adoption of this amendment, and two directors shall be elected for a term of one year. Thereafter, all directors shall be elected for a term of two years.

_____ FOR _____AGAINST

Proposed Amendment Seven: Amend Section 9.2 as follows:

9.2 A resolution adopting a proposed amendment may be proposed by either the Board of Directors or by the members of the Association. Directors and members not present in person or by proxy at the meeting considering the amendment may express their approval in writing, provided such approval is delivered to the Secretary at or prior to the meeting. Except as elsewhere provided, such approval must be by not less than two-thirds (2/3) of the entire membership of the Board of Directors and by not less than two-thirds (2/3) of the votes of the entire membership of the Association the members of the Association voting in person or by absentee ballot.

_____ FOR _____AGAINST

PLEASE INDICATE YOUR VOTE ON EACH OF THE SEVEN PROPOSED AMENDMENTS.

SIGN THE BALLOT BELOW AND INDICATE ALL LOT NUMBERS THAT YOU OWN. MAIL YOUR COMPLETED BALLOT IN THE ENCLOSED ENVELOPE BY MARCH 31 TO P.O. BOX 350668, PALM COAST, FL 32135.

Signed _____________________________________________ Lot(s) Owned ______________________