ARTICLE II

PROPERTY SUBJECT TO DECLARATION

Section 2.01. Initial Property Subject to the Declaration. The real property which is, and shall be hold, conveyed, hypothecated or encumbered, sold, learned, rented, used, occupied and improved subject to this Declaration is located in Anne Arundel County, State of Maryland, and is more particularly described on Exhibit "A" attached hereto and by this reference made a part hereof.

Section 2.02. Annexation. Additional property, which is part of the property shown an the Development Plan, as amended, may be annexed to the above-described property by the Declarant without the consent of the Class A members of the Association, if any, for a period of seven (7) years after the date of recordation of this Declaration. The scheme of this Declaration shall not, however, be ,extended to include any such additional property unless and until the same is annexed to the real property described on Exhibit 'A' as hereinafter provided.

Any annexations made pursuant to this Article, or otherwise, shall be made by recording a Supplementary Declaration of Covenants, Conditions and Restrictions among the Land Records for Anne Arundel County, Maryland, which Supplementary Declaration shall extend the scheme of the within Declaration of Covenants, Conditions and Restrictions to such annexed property.

Provided the Veterans Administration has previously issued some form of approval of this community or this Declaration and so long as any Lot in encumbered by a deed of trust or mortgage which is guaranteed by the Veterans Administration, no annexation shall be made pursuant to this Article, or otherwise, except following a determination by the Veterans Administration that the annexation conforms to a general plan for the development of the community previously approved by the Veterans Administration.

Any Supplementary Declaration of Covenants, Conditions and Restrictions made pursuant to the provisions of this Article may contain such complementary or supplemental additions and modifications to the covenants and restrictions set forth in the within Declaration as may be considered necessary by the maker of such Supplementary Declaration of Covenants, Conditions and Restrictions.

Every Owner of a Lot in property annexed as provided herein shall have an easement of enjoyment in and to the Common Area and such other rights of use as provided in Section 3.01 herein.

Section 2.03. Deannexation. Until the lapse of the Class B memberships the Declarant may deannex or withdraw any property subject to the covenants and restrictions of this Declaration without the consent of any Owner, whether such Owner is a Class A or Class B member of the Association. Any deannexation or withdrawal made pursuant to this Article, or otherwise, shall be made by recording a Supplementary Declaration of Covenants, Conditions and Restrictions among the Land Records of Anne Arundel County, Maryland, which Supplementary Declaration shall cause the covenants and restrictions of this Declaration to no longer have any force or effect with respect to the deannexed property.

Notwithstanding anything contained in this Section 2.03 to the contrary, no deannexation or withdrawal may be made without obtaining the prior written consent of the Anne Arundel County Office of Planning and Zoning, or its successors and assigns. In the event any Lot is subject to a mortgage or deed of trust which in guaranteed by the Veterans Administration or insured by the Federal Housing Administration the written consent of the Veterans Administration or Federal Housing Administration must be obtained prior to any annexation or withdrawal of property pursuant to this Section 2.03. No Lot upon which is situated a completed and occupied dwelling unit or which is subject to a purchase contract may be deannexed or withdrawn without the prior written consent of the Owner or contract purchaser of such Lot.