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

