Common use of Distributions to Members Clause in Contracts

Distributions to Members. The Company shall not directly or indirectly declare or pay any dividend or make any payments, distributions or retirements of patronage capital to members (each a "Distribution") if, at the time thereof or after giving effect thereto, (i) an Event of Default shall exist, or (ii) the Company's patronage capital (determined in accordance with Accounting Requirements) as of the end of the Company's most recent fiscal quarter would be less than twenty percent (20%) of the Company's total long-term debt and patronage capital (determined in accordance with Accounting Requirements) at such time. Notwithstanding the foregoing and so long as no Event of Default shall exist, the Company may declare and make Distributions each fiscal year as long as the aggregate Distributions for such fiscal year is equal to or less than five percent (5%) of the Company's patronage capital (determined in accordance with Accounting Requirements) as of the end of the immediately preceding fiscal year. For purposes of this Section, determination of patronage capital and total long-term debt and patronage capital shall not include any amount on account of earnings retained in any Subsidiary or Affiliate of the Company and any such determination of total long-term debt and patronage capital shall exclude the debt of any Subsidiary or Affiliate.

Distributions to Members. The Company shall not directly or indirectly declare or pay any dividend or make any payments, distributions or retirements of patronage capital to members (each a "Distribution") if, at the time thereof or after giving effect thereto, (i) an Event of Default shall exist, or (ii) the Company's patronage capital (determined in accordance with Accounting Requirements) as of the end of the Company's most recent fiscal quarter would be less than twenty percent (20%) of the Company's total long-term debt and patronage capital (determined in accordance with Accounting Requirements) at such time. Notwithstanding the foregoing and so long as no Event of Default shall exist, the Company may declare and make Distributions each fiscal year as long as the aggregate Distributions for such fiscal year is equal to or less than five percent (5%) of the Company's patronage capital (determined in accordance with Accounting Requirements) as of the end of the immediately preceding fiscal year. For purposes of this Section, determination of patronage capital and total long-long- term debt and patronage capital shall not include any amount on account of earnings retained in any Subsidiary or Affiliate of the Company and any such determination of total long-term debt and patronage capital shall exclude the debt of any Subsidiary or Affiliate.