Common use of DISTRIBUTION OF CAPITAL SHARE DISTRIBUTIONS Clause in Contracts

DISTRIBUTION OF CAPITAL SHARE DISTRIBUTIONS. The Cooperative shall allocate and disburse to members on all profits their contributable share based on their portion of their Capital Shares/Units. For the first three (3) years the Member’s distribution shall be directed back to the Cooperative and treated as a capital contribution to the Cooperative. After the third year, the Member will be considered a vested Member and a percentage of the Member’s adjusted profit share and capital share subject to available funds will be distributed to the Member in the manner set forth in this Article. If the third year has not been reached six (6) months prior to the distribution cycle and by the date of the distribution of notices as described in Article VII, Section 2, then the member will receive his/her distribution in the following year at the same time of the yearly scheduled distribution date, even if there will not be a scheduled distribution cycle during that calendar year. Distributions are based on the rate of interest and ratio of available funds in the Member’s capital account and profit share accrued to total member shares at the time total membership capital contribution is paid in full. Members shall retain the right to waive in whole or in part by written notice to the Board, any distributions to which they may be entitled.