Section 1: Organization

The declarant shall cause the Association to be organized as a non-profit corporation under the laws of the State of Texas. The Association shall be so organized before the Declarant coveys the first townhome building plot to a purchaser. The declarant shall also convey to the Association, free and clear of liens, the common area prior to the time that the declarant conveys the first townhome building plot to a purchaser.

Section 2: Membership

Each and every owner of the fee or a fee interest in a townhome building plot in the property and all additions or annexations thereto shall automatically, upon becoming such owner, be a member of the Association and shall remain a member thereof until his ownership ceases for any reason, at which time his membership in the Association shall automatically cease. Membership in the Association shall be appurtenant to and shall automatically follow the ownership of each townhome building plot and may not be separated from such ownership.

Section 3: Classes of Membership, Voting Rights

The Association shall have two classes of voting membership designated as “Class A” and “Class B” who shall be composed and have voting rights as follows:

Class A

Class A members shall be all owners with the exception of the declarant, each of which owners shall be entitled to one (1) vote for each townhome building plot owned by him. When more than one person owns a fee interest in any townhome building plot, all such interested persons shall be members; however, the vote for such townhome building plot shall be cast by the person or persons having a majority interest, and in the event the persons having a majority interest are not able to agree in respect to a vote upon any matter, then such owners shall not have a right to vote on such matter as there shall be no fractional votes.

Class B

Class B member(s) shall be the declarant who shall be entitled to three (3) votes for each townhome building plot owned by it, whether improved or unimproved. The Class B membership shall cease and be converted into Class A membership on the happening of the following events, whichever occurs earlier:

1. When the total votes outstanding in the Class A members equals for a period of at least twenty-four (24) consecutive months the total votes outstanding in the Class B membership; or
2. On the 5th anniversary date of the first conveyance by the declarant of a townhome building plot with a residence thereon, to a purchaser.

Section 4

The purpose of the corporation shall be to promote the health, safety and welfare of the residents within the above described property and to provide for maintenance, repair, preservation, upkeep protection and architectural control of the common area of such property and such other purposes as may be stated in the Articles of Incorporation and consistent with the provisions of this Declaration.