Developer Control. Except as hereafter provided, the Developer shall have the right to appoint all of the members of the Board of Directors of the Association until Unit Owners other than Developer own 15% or more of the Units that will ultimately be operated by the Association. When Unit Owners other than the Developer own 15% or more of the Units that will ultimately be operated by the Association, the Unit Owners other than the Developer shall be entitled to elect not less than 1/3 of the members of the Board of Directors. Unit Owners other than the Developer are entitled to elect not less than a majority of the members of the Board of Directors: (a) three years after 50% of the Units that will ultimately be operated by the Association have been conveyed to purchasers; (b) three months after 90% of the Units that will ultimately be operated by the Association have been conveyed to purchasers; (c) when all of the Units that will ultimately be operated by the Association have been completed, some of them have been conveyed to purchasers, and none of the others are being offered for sale by Developer in the ordinary course of business; (d) when some of the Units have been conveyed to purchasers and none of the others are being constructed or offered for sale by Developer in the ordinary course of business; or (e) seven years after the date the Declaration creating Phase I is recorded, whichever occurs first. Developer is entitled (but not obligated) to elect at least one member of the Board of Directors as long as the Developer holds for sale in the ordinary course of business 5% of the Units that will ultimately be operated by the Association. After the Developer relinquishes control of the Association, the Developer may exercise the right to vote any Developer owned Units in the same manner as any other Unit Owner except for purposes of reacquiring control of the Association or selecting the majority members of the Board.
Developer Control. Notwithstanding any provisions of this Master Deed or the Bylaws to the contrary, Xxxxxxxxx agrees and shall have the right to retain control of the Association for a period commencing upon the date of the initial recordation of this Master Deed in the Register’s Office for Grainger County, Tennessee, and ending upon the earlier of (i) the day which is four months after the date on which at least fifty of the residential Units have been conveyed by Developer to initial purchasers as evidenced by the records of the Register’s Office for Grainger County, Tennessee, or (ii) the day which is five years after the first conveyance by Developer of a residential Unit to an initial purchaser as evidenced by the records of the Register’s Office for Grainger County, Tennessee, (the “Developer Control Period”); provided, however, that Developer may elect in its sole discretion to terminate the Developer Control Period at any earlier date by providing written notice of such election to the Board of Directors.
