HAMMOCK BEACH ESTATES HOME OWNERS ASSOCIATION, INC.

P.O. Box 350668

Palm Coast , Florida 32135

May 11, 2007

Results of closed meeting with attorney

On May 7, 2007 the Board of Directors for Hammock Beach Estates Homeowner’s Association, Inc. conducted a closed meeting with Robyn Braun, Attorney, regarding the application submitted by John & Sharon Pavlos for construction of a 40 foot pool with decking on all sides of the pool.

The Association is currently involved in litigation with the Joyces and Weisses regarding the installation of the Weiss’ pool deck. During that litigation, a court will be asked to interpret Article IX, Section 8 of the Association’s declaration, as amended, which concerns the maximum width of a dwelling unit and other appurtenances. A judgment rendered by the court in that litigation could impact the proposed pool project and any decision that the Board may issue concerning the application.

Therefore, upon advice of counsel and only for the reason explained, the Board has decided to deny the application, as submitted, until the Joyce litigation is resolved. The denial is subject to further consideration upon the conclusion of the Joyce litigation.

Respectfully submitted,

Peggy Steele, Sec. HBEHOA

Paul Zacharias, President

Debbie Clark, Vice President

Peggy Steele, Secretary

Fred Black, Treasurer

Joe Bowen, Operations Manager

HBEclosedmeetpavlos pool2007