Hi Jim,
You are correct, CaseComplete doesn't allow extensions on extensions. What we recommend instead is to refactor the extension into a separate use case, and then reference that use case from the extension step. CaseComplete makes this pretty easy - just select the steps in the extension, then right click and select Move to new Use Case. More information here:
http://casecomplete.zendesk.com/entries/263040-refactor-use-cases
In the new use case, you can then have extensions on those steps. You might make a note in the preconditions that the use case only occurs through extended behavior of the "parent" use case for clarity.
Hope this helps,
Doug