ARTICLE II

Property

Section 2.1  Generally .
Sky Island shall be developed in phases.  Initially, this Declaration applies only to the property described in Exhibit "A", which consists of the plat known as "Sky Island," located in Bonney Lake consisting of Lots 1 through 7, and Tracts B and C as shown on the plat recorded with the Pierce County Auditor under file number 9705010309, and the plat known as "Sky Island Division One" located in unincorporated Pierce County consisting of Lots 1 through 78, and Tracts A, B and D as shown on the plat recorded with the Pierce County Auditor under file number 9702030032.

Section 2.2  Submission Without Approval of Membership.
At any time until the Class B membership ends, Developer may, in Developer's sole discretion, unilaterally subject to the provisions of this Declaration all or any portion of the real property described in Exhibit "B", and all or any portion of any real property abutting the real property described on Exhibits "A" or "B."Developer also may unilaterally assign the right, privilege and option to submit property to this Declaration which is herein reserved to Developer, provided that such transferee or assignee shall be the developer of at least a portion of the real property described in Exhibits "A" or "B" and that such assignment is memorialized in a written, recorded instrument executed by Developer.

Section 2.3.Submission with Approval of Membership.
The Association may submit real property other than that described on Exhibit "B," and, after the Class B membership ends, any property described on Exhibit "B," to the provisions of this Declaration with the consent of the owners of such property and the affirmative vote of at least sixty-seven percent (67%) of the Class "A" votes of the Association at a meeting duly called for such purpose and the consent of Developer, so long as Developer owns property subject to this Declaration or which may become subject to this Declaration in accordance with Section 2.2.

Section 2.4. Additional Covenants and Easements.
Developer may unilaterally subject any portion of the Property submitted to this Declaration initially or by Supplemental Declaration to additional covenants and easements. Such additional covenants and easements shall be set forth in a Supplemental Declaration, filed either concurrent with or after the submission of the subject property, and shall require the written consent of the Owners of such property if not Developer.

Section 2.5.Supplemental Declaration.
Any changes in the Property shall be evidenced by, and effective upon, recording a Supplemental Declaration with the Pierce County Auditor. The Supplemental Declaration shall describe the property being added; and shall be signed by the Developer, if any, the owner of the property if not Developer, and, if membership approval is required, by the President and the Secretary of the Association.

Section 2.6. Grandfathered Homes.
At the time of the initial development of Sky Island, homes already exist on Lots 1 and 7 of the plat known as Sky Island. These two homes may not comply with all of the provisions of this Declaration, including but not limited to the minimum square footage requirement in Section 10.3. Accordingly, so long as the homes continue to exist in their present form they will not be required to be modified to comply with this Declaration. Any new improvements to these lots, including but not limited to modifications to existing structures or the construction of new structures, however, shall be in compliance with the requirements of this Declaration.