Class A Stock definition
Examples of Class A Stock in a sentence
Any cash or property held by either LGN or the Company or on either’s behalf in respect of dividends paid on restricted Class A Stock that fails to vest shall be returned to the Company upon the forfeiture of such restricted Class A Stock.
LGN shall be treated for all purposes of this Agreement as the owner of such Class B Units; provided, that if LGN funds the Cash Election Amount through the net proceeds of an issuance of equity securities of LGN other than shares of Class A Stock, such Class B Units will be reclassified into another equity security of the Company if the Managing Member determines such reclassification is necessary.
Any such Redemption shall be treated for federal income tax purposes as a sale of the Redeeming Member’s Class B Units (together with the same number of shares of Class B Stock) to LGN in exchange for shares of Class A Stock or cash, as applicable.
This Section 3.1(e) shall be applied to maintain at all times (i) a one-to-one ratio between the number of Class A Units owned, directly or indirectly, by LGN and the number of outstanding shares of Class A Stock or (ii) a one-to-one ratio between the number of Class B Units owned by Members (other than LGN and its Subsidiaries) and the number of outstanding shares of Class B Stock.