Section 2.01. Annexation Procedures.  No additional property will be annexed unless the safety or classification of the entire ship requires such annexation.  If any such annexation is required, the following procedures shall apply:

(a) Annexation by Declarant. If the Declarant is required by the ship classification society or other legal authorities to annex property for safety or other legal requirements, then the Owner of the annexed property will be compensated from the ship’s common fund at the purchase price rate for any and all annexed property. 

(b) Other Annexations. Additional property within the area described in Exhibit E may also be annexed to the Initial Property upon the approval by vote or written assent of not less than two-thirds of the voting power of the Association residing in Members other than Declarant.

(c) Conveyance of Association Property Within Annexed Property. Prior to the conveyance of any Unit within any Annexed Property to the purchaser of such Unit, any Association Property within the Annexed Property shall be conveyed in fee to the Association, free and clear of any and all encumbrances and liens, and reservations, easements, rights, rights of way, covenants, conditions and restrictions then of record, including those set forth in this Declaration.

(d) Supplementary Declaration. The annexations authorized under this Section shall be made by filing of record a Supplementary Declaration covering the property to be annexed which shall be executed by the Declarant or the owner of such property. The filing of record of the Supplementary Declaration shall constitute and effectuate the annexation of the Annexed Property. Upon such annexation, the Annexed Property shall become a part of the Property, become subject to and encompassed within the general plan of this Declaration and become subject to assessment by the Association and to the functions, powers and jurisdiction of the Association. In such event, the Owners of Units in the Annexed Property shall automatically become Members of the Association. No such annexation shall change the Owner of a Unit's undivided interest in the Common Area of the Project within which his Unit is located. The Supplementary Declaration shall, with respect to each Project, set forth the fractional undivided fee interest of each Owner in common with the other Owners in such Project in the Common Area of such Project and with respect to the Annexed Property, may contain such additions and modifications to the provisions of this Declaration as may be necessary to reflect the different character, if any, of the Annexed Property or as the Declarant may deem appropriate in the development of the Annexed Property and as are not inconsistent with the general plan of this Declaration. In no event, however, shall the Supplementary Declaration change the covenants, conditions, restrictions or easements established by this Declaration as they pertain to the Initial Property.

(e) Quality of Improvements and Other Requirements. Improvements constructed within Annexed Property shall be consistent with the initial improvements constructed within the Initial Property in terms of quality of construction.  All improvements intended for Annexed Property shall comply with the requirements for Unit projects established by the ship’s classification society.