ARTICLE I DEFINITION OF TERMS

1.1. Whenever used in this Declaration, the following terms shall
have the following meanings:

1.1.1. Annexation. Shall mean the addition of real property, and
improvements thereto, into the scheme of restrictions created by this
Declaration. Upon such annexation, the added real property,
and lots therein, shall be governed by, and subject to, each and every
provision of this Declaration and any amendments thereto. All annexation
of territory shall be accomplished pursuant to procedures set forth in
Article XIV hereof.

1.1.2. Declaration: Shall mean this Declaration of Establishment of
Conditions, Covenants and Restrictions, as the same may be amended,
changed or modified, from time to time.

1.1.3. Lot: Shall mean and refer to any plot of land shown upon any
recorded subdivision maps of the Project.

1.1.4. Owner: Shall mean the record Owner or Owners, if more than one,
of a Lot in the Project, including Declarant, for so long as any Lots
within the Project remain unsold.

1.1.5. Phase: Shall mean one of the three phases of development.
The real property and all improvements thereon in Phases II and III
shall be annexed into the Project in the manner hereinafter prescribed
in Paragraph 14.1 of Article XIV.

Phase I shall consist of the real property and all improvements thereon
described as: Lots 1 to 60, inclusive, of Tract No. 37198 in the City
and County of Los Angeles, State of California, as per Map recorded on
June 9, 1981, in Book 782, Pages 74 to 80, inclusive, of Maps, in the
Office of the County Recorder of said County;

Phase II shall refer to the real property and all improvements located
thereon described as Lots 1 to 104, inclusive, of Tract No. 37199 as
shown on a Subdivision Map recorded on April 2, 1982, in Book 1004, Page
14 to 21, inclusive, of Maps in the Office of the Los Angeles City Recorder.

Phase III shall refer to the real property and all improvements located
thereon described as Lots 1 to 107, inclusive of Tract No. 26509 as 32mm
on a Subdivision Map recorded on October 3, 1982, in Book 1011, pages 21
to 26, inclusive, of Maps in the Office of the Los Angeles Go.taty Recorder.

1.1.6. Mortgage: Shall mean and include a Deed of Trust as well as a
Mortgage in the conventional issue.

1.1.7. Mortgagee: Shall mean a person or entity to whom a mortgage is made,
and shall include the beneficiary of a Deed of Trust.

1.1.8. Mortgagor: Shall mean a person or entity who mortgages his or its
property to another, i.e., the maker of a Mortgage, and shall include the
Trustor of a Deed of Trust.

1.1.9. Institutional Lender: Shall mean a Mortgagee which is a bank or
savings and loan association, any established mortgage company, any entity
chartered under Federal or State laws, any corporation or insurance company,
or any Federal or State agency.

1.1.10. Member: Shall mean an Owner with a Membership in the
Association.

1.1.11. Association: Shall mean Canoga Countryhills Homeowners' Association,
a California nonprofit mutual benefit corporation, whose Members consist of
all Owners of Lots in the Project. Each Owner shall be and become a Member of
the Association contemporaneously with his acquisition of a Lot, without further
documentation of any kind. Transfer of a Membership shall be only by conveyance
of the Lot.

1.1.12. Board of Directors: Shall refer to the governing body of the Association
(hereinafter referred to as the "Board").

1.1.13. Bylaws: The duly adopted Bylaws of the Association as the same may be
amended, from time to time.

1.1.14. The aforesaid definitions shall be applicable to this Declaration and
to any supplements or amendments thereto (unless the context shall prohibit),
recorded pursuant to the provisions of this Declaration.