Section 3.2. Reservation of Right to Expand. Declarant reserves the right, but shall not be obligated, to expand Castle Pines North to include all or part of the Expansion Master Association Properties. Declarant shall have the unilateral right to transfer to any other person the right to expand which is herein reserved by an instrument duly recorded. The Declarant shall pay all taxes and other governmental Assessments relating to the Expansion Master Association Properties until expansion.

Section 3.3. Declaration of Annexation. Such expansion may be accomplished by recording a Declaration of Annexation in the records of the Clerk and Recorder of Douglas County, Colorado, before December 31, 1991, describing the real property to be annexed, submitting it to the covenants, conditions, and restrictions contained herein, designating it as a Delegate District, and providing for the readjustment of voting rights and Assessment allocations as provided herein. Such Declaration of Annexation shall not require the consent of Owners. Any such expansion shall be effective upon the filing for record of such Declaration of Annexation except as provided therein. The expansion may be accomplished in stages by successive supplements or in one supplemental expansion. Upon the recordation of any such Declaration of Annexation, the definitions used in this Declaration shall be expanded automatically to encompass and refer to Castle Pines North as expanded. Such Declaration of Annexation may add, delete, or modify provisions of this Declaration as it applies to the property being annexed, provided, however, that this Declaration may not be modified with respect to the Master Association Properties already subject to the Declaration except as provided herein for amendment.

Section 3.4. FHA/VA Approval of Annexations. So long as the FHA or the VA is insuring or guaranteeing loans or has agreed to insure or guarantee loans on any portion of Castle Pines North, made with respect to the initial sales of Privately Owned Sites or Units, then it shall be a condition to such annexation by Declarant that the written approval of such annexation by the VA or the FHA must be obtained. Failure to obtain such written approval may result in the Expansion Master Association Properties located within such Annexation not being eligible for FHA and/or VA insured or guaranteed loans, but it shall not be deemed to preclude or be a waiver of the right of Declarant to annex such Expansion Property or any subsequent Annexation.

Section 3.5. Incorporation of Expansion Master Association Properties. Real property which is not part of the Expansion Master Association Properties or Adjoining Lands may be incorporated into the Master Association Properties with the consent of two-thirds of each class of Members.