ARTICLE I- DEFINITIONS

A. "Association" shall mean and refer to The Hammock Beach Estates Home Owner's Association, Inc., a Florida corporation not for profit.

B. "Developer" shall mean and refer to Sim-Par, Inc., a Florida corporation, its successors and assigns.

C. "Declaration" shall mean and refer to this instrument.

D. "Lot" shall mean and refer to any lot as more particularly described above.

E. "Lot Owner" shall mean arid refer to the holder or holders of the fee title to a lot as herein defined.

F. "Person" shall mean and refer to any person, firm, association or corporation.

G. "Dwelling Unit" shall mean and refer to a single family residential unit to be used as an abode for one family.

H. "Enclosed Living Area" shall mean and refer to the square footage of a dwelling unit under roof, exclusive of open porches, atriums, screened in patios, court yards, garages, or 'other similar type space.

I - "Developer Improvements" shall mean and refer to the entrance feature, perimeter wall, landscaping, drainage, retention areas, lakes, and any street lighting or mailboxes which may be originally installed by the company, whether such improvements are located on dedicated rights of way, individual lots, or on real property owned by the Home Owner's Association. Upon creation of the Home Owner's Association provided for herein, the Developer shall provide to the Association a written statement of the developer improvements as defined herein and which shall be the responsibility of said Association to operate and maintain.

              1. Storm Water Retention Area, Parcel A. A stormwater retention area identified as Parcel A, is located on the Plat of Armand Beach Estates. Parcel A shall be included within the definition of "Developer Improvements" as identified on page 2 of the Declaration of Covenants, Restrictions and Easements as originally recorded at Official Record Book 0422, Page 0417, Public Records of Flagler County, Florida. All provisions regarding "Developer Improvements" shall apply to the stormwater retention area identified as Parcel A.

              2. Roadway - Parcel B.

                            A. Perpetual. Non-Exclusive Easement. There is a road identified as Parcel B, on the plat of Armand Beach Estates. The road is named "Ocean Dune Circle" and is a private road. The road provides access for lots 1 through 29 inclusive. A perpetual nonexclusive easement in favor of all lot owners and dwelling unit owners for lots 1 through 29 inclusive Armand Beach Estates hereby specifically created over and upon the roadway identified as Parcel B. This easement runs in favor of all such owners and their families, guests, lessees, invitees and others, all for the use and purpose of providing access to lot numbers 1 through 29 and dwelling units located thereon.

                           B. Maintenance of Road. The owners of said lots and/or dwelling units (1-29) are responsible , for the care, maintenance and preservation of said road, which funds shall be collected by the Association as a special assessment against lots 1 through 29 inclusive only, pursuant to the provisions of Article VII ASSOCIATION OPERATION AND ASSESSMENTS, found at page 12 of the Declaration as originally recorded at Official Record Book 0422, Page 0427, Public Records of Flagler County, Florida. The Association shall determine and assess costs necessary for the care, preservation and maintenance of said road and shall collect same as provided in Article VII as a special assessment against lots 1-29 only. The Association shall have all lien and foreclosure rights for non-payment as provided in Article VII. At the discretion of the Association, the costs of maintenance and repair for the road may be budgeted as a capital expense item and collected in addition to the regular assessments; or alternatively, may be assessed and collected as a special assessment as and when maintenance and repairs are necessary. Regardless of the method of collection, the Association shall collect and maintain separate records for all funds paid toward the care, preservation and maintenance of the road. Funds collected for road maintenance may be used only for said purpose; and said funds may not be co-mingled for use by the Association incident to other expenses. Likewise, no funds collected from regular assessments paid by all unit owners shall be used for the care, maintenance or preservation of the road identified as parcel B. At the discretion of the Board of Directors of the Association, a three (3) member advisory committee consisting of three (3) lot owners from lots 1 through 29 inclusive, may be appointed by the Board of Directors of the Association for purposes of providing direction to the Association on matters relating to the care, maintenance and preservation of this road, and expenses associated therewith.

                            C. Use of Roadway The use of said road identified as Parcel B must always be consistent with City, County or State rules and regulations regarding the use of streets and roads. By way of illustration, and not limitation, vehicles must be operated by licensed drivers and all terrain vehicles or other similar off road vehicles may not be not be operated upon the roadway identified as Parcel B. Notwithstanding, nothing shall interfere with the designation of said road as a private road. The Developer, at Developer's sole option, may erect security gates at he entrance of said road. If security gates are erected by the Developer, the Association shall maintain said security gates from the special assessment collected from lot owners of lots 1 through 29 inclusive.

                            D. Traffic Control Devices - Agreement. All traffic control devices located upon said private road (Parcel B) shall be in conformity with the Manual on Uniform Traffic Control Devices (MUTCD) developed by the U.S. Department of Transportation. Either the Developer or the Association shall have the authority to enter into a traffic control agreement with a municipality or the County pursuant to Florida law. Whether or not a traffic control agreement is executed; traffic control shall be permitted by the jurisdiction or jurisdictions which control traffic on public roads. No lot owner may object or interfere with traffic control by appropriate governmental agencies.

J - "Recreation Facility" shall mean and refer to the following described real property, to-wit:

Lots 203 and 204, Armand Beach East
Subdivision, as recorded in Plat Book 8, page
22, Public Records of Flagler County, Florida.

K - "Properties" shall mean and refer to the real property above herein and any additions thereto as are subjected Declaration pursuant to the provisions of Article XI herein.