The Coconino sun., 1925-02-06

common stock; and the holder oi the
class A preferred stock shall be ell
titled to no further payment.
(3) IL the proportion of the carr.
|iiigs of the corporation out of whicl
|any class A preferred stock dividend
Is payable for any half year shall he
insufficient to pay the dividend fo7
that half year on class A preferred
stock, such dividend |mav he ps,id oui
OF earned surplus, subject, however, It.
The rights Of the holders of the frs
preferred stock and providing that
u h surplus does not consist in any
part Of the portion of the surplus with
which classified common stockholders
are entitled to be credited as provid-
ed in Article vi, paragraph (2)
tn Class A preferred stock shall
have no voting power except as spo-
|cf.c, :. provided by law.
(5) Subject to the provisions of
law class A preferred stock shall be
issued at such prices and for such con-
sideration, ct such times, and in such
manner, and in such amounts as the
Board of Directors shall determine.
Article TX
UNCLASS SS1FIED COMMON
STOCK:
"a The unclassified common stock
shall not be assessable for any pur-
poae. .
The holders of the unclassified COM
mon stock of this corporation shall be
entitled (subject to the rights Of the
holders Of first preferred stock, clas-
sified common stock and class A pre-
fefred stock, as set forth in these
Articles) to receive all dividends,
whether stock or cash, declared and
distributed out Of the profits earned
by the corporation.
(2) At the end Of any year when
the net earnings of the corporation
equal 1870 or more upon the book
value (exclusive Of current years
earnings) of the unclassified common
stock CATER deduction from such net
earnings of the dividends payable upon
the first preferred stock, the class A
preferred stock, and the proportion Of
the net earnings with which the clasSl~
fled common stockholders are entitled
to be credited) the unclassified COM
mon stockholders shall be entitled to
receive and the Board o. Directors OF
the corporation must declare and dis
tribute. a dividend in cash equal 70
at. least 7go Of the book value of such
unclassified common stock, and wnen
such ret earnings equal 20fo or more,
the unclassified common stockholders
shall be entitled to receive, and the
Board of Directors of the corporation
must declare and distribute, divl-
dend in cash equal to at least 10a6 of
the book value of such unclassified
common stock. These prov<ions in
no way constitute a restriction upon
the maximum rate of dividends which
may be declared and paid upon the
unclassified common stock.
Provided, however, that the capital
of the corporation has not been inl-
paired by previous losses making it
necessary to restore the same before
the declaration and distribution Of
either of such dividends, and further
provided that the declaration and dis
tribution of either of such dividends
does not in any way conflict with the
provisions Of Articles v and VIII
pertaining to first preferred stock and
c.ass A preferred stock.
(3) Said unclassified common
stock. without nominal or par value,
may be issued by the corporation from
time to time for such consideration as
may be fixed from time to time by
the Board Of Directors therefor.
(4) Subject to the provisions of
paragraph (2) Of this Article, the
Board of Directors may cause to be
accumulated all or any part Of that
portion of the net earnings accruing
to the benefit of the unclassified COM
mon stockholders for use in further
ance of the business of the corpora
ton, and may declare and distribute
stock dividends of unclassified COM
mon stock converting all or any part
OF said earnings into capital.
Article X
RESTRICTIONS-ON THE SALE
OF UNCLASSIFIED COMMON
STOCK:
The subscriptions for and ownership
of all unclassified common stock in
this corporation are made and taken
upon the condition that the purchaser,
owner or holder thereof desiring to
sell the same, shall first deliver the
same to the Board of Directors for
sale, who shall fix the price to be
paid to said stockholder for said stock
by computing the value Of said stock
by the following method, (1) it shall
ascertain the book value of said stock
as of the last day Of the calendar
month in which the stockholder de-
liyers his stock, as established by the
accounting methods employed by said
corporation at the time delivery Is
|made. (2) it shall ascertain the good
wilivalue of said stock by the method
then in use by the corporation as set
forth in its bylaws or by resolution
of the stockholders or Board of Di
rectors. The total of the book value
of the stock and one-half its good will
value as ascertained (if any shall be
the price to be paid to the stock
holder.
AS soon as the price Of said stock
has been fixed. and the stockholder
has been rotified of such fact the
corporation acting through its Board
of Directors Shall have the right
within ,he sixty days next succeeding
but not later than 90 days after de-
livery Of the stock to the Board OF
Directors for sale, either to purchase