Go Daddy 2015 Annual Report Download - page 55

Table of Contents
Lake is entitled to nominate at least one director to our board of directors. Pursuant to agreements with us, members of our senior management team and
independent directors and certain holders of more than 100,000 shares of our Class A common stock (including shares of Class A common stock issuable upon the
exchange of LLC Units) and/or options to purchase Class A common stock may not, subject to certain limited exceptions, transfer, sell, exchange, assign, pledge,
hypothecate, convey or otherwise dispose of or encumber any shares of our Class A common stock (including shares of Class A common stock issuable upon
exchange of LLC Units) during the one-year period following our IPO. If these additional shares are sold, or if it is perceived they will be sold, in the public
market, the trading price of shares of our Class A common stock could decline.
If securities analysts do not publish research or reports about our business, or if they downgrade our stock, the price of our stock could decline.
The trading market for our Class A common stock could be influenced by any research and reports securities or industry analysts publish about us or our
business. In the event securities analysts cover our company and one or more of these analysts downgrade our stock or publish unfavorable research about our
business, our stock price would likely decline. If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, demand for
our stock could decrease, which could cause our stock price and trading volume to decline.
We do not intend to pay dividends on our Class A common stock.
We do not expect to pay dividends to the holders of our Class A common stock for the foreseeable future. Our ability to pay dividends on our Class A
common stock is limited by our existing indebtedness, and may be further restricted by the terms of any future debt incurred or preferred securities issued by us or
our subsidiaries or by law. Payments of future dividends, if any, will be at the discretion of our board of directors after taking into account various factors,
including our business, operating results and financial condition, current and anticipated cash needs, plans for expansion and any legal or contractual limitations on
our ability to pay dividends. As a result, any capital appreciation in the price of our Class A common stock may be your only source of gain on your investment in
our Class A common stock.
If, however, we decide to pay a dividend in the future, we would need to cause Desert Newco to make distributions to GoDaddy Inc. in an amount sufficient
to cover such dividend. Deterioration in the consolidated financial condition, earnings or cash flow of Desert Newco for any reason could limit or impair its ability
to make distributions to us.
Item 1B. Unresolved Staff Comments
None.
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