LLC Member Classes Based on Investment Contributions

A breakdown of different classes of Tony Brands LLC members based on their capital contributions

Tony Brands LLC Member Classes Based on Investment Contributions

Class A Members – Principal Investors

  • Contribution: $100,000+

  • Voting Rights: Full voting rights (1 vote per 1% of ownership)

  • Members Ownership Cap: No Class A Members, shall own, directly or indirectly, more than [10% ownership interest]

  • Profit Distribution: Priority return on investment + pro-rata share of profits

  • Management Role: Eligible for management positions or board seats

  • Exit Rights: Preferential buyout terms or first rights in a liquidity event

 

Class B Members – Major Investors

  • Contribution: $25,000 – $99,999

  • Voting Rights: Limited voting rights (1 vote per 2% of ownership)

  • Members Ownership Cap: No Class B Members, shall own, directly or indirectly, more than [6% ownership interest]

  • Profit Distribution: Pro-rata share of profits after Class A preferred returns

  • Management Role: Advisory role optional, not required

  • Exit Rights: Buyout rights after Class A

 

Class C Members – Minor Investors / Silent Partners

  • Contribution: $5,000 – $24,999

  • Voting Rights: No voting rights unless majority agrees otherwise

  • Members Ownership Cap: No Class C Members, shall own, directly or indirectly, more than [2% ownership interest]

  • Profit Distribution: Pro-rata share of remaining profits after A & B classes

  • Management Role: No involvement in day-to-day operations

  • Exit Rights: Can sell interest with approval of Class A majority

 

Class D Members – Sweat Equity / Service-Based Members

  • Contribution: Non-cash (services, IP, labor)

  • Voting Rights: Negotiated on a case-by-case basis

  • Members Ownership Cap: Negotiated ownership cap on a case-by-case basis

  • Profit Distribution: Deferred or conditional on performance milestones

  • Management Role: May be involved in operations depending on role

  • Exit Rights: Subject to vesting schedules and clawback clauses