The Subscription Agreement Cooperative serves as the foundational document for establishing membership in U.S. cooperative organizations. This agreement is essential when new members join a cooperative, detailing their financial commitment, rights, and responsibilities. It ensures compliance with both federal and state cooperative laws, including securities regulations where applicable. The document typically includes subscription terms, payment obligations, patronage requirements, and member rights, while adhering to cooperative principles of democratic member control and economic participation.
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1. Parties: Identification of the Cooperative and the subscribing member
2. Background: Purpose of the cooperative and context for membership subscription
3. Definitions: Key terms used throughout the agreement
4. Subscription Terms: Number of shares/units being subscribed to and price
5. Payment Terms: Method and timing of payment for subscription
6. Member Rights and Obligations: Core membership rights, voting rights, and responsibilities
7. Patronage Requirements: Minimum participation requirements and patronage terms
8. Term and Termination: Duration of membership and termination conditions
9. Governing Law: Applicable jurisdiction and legal framework
1. Special Capital Contributions: Additional capital requirements beyond initial subscription
2. Transfer Restrictions: Limitations on transfer of membership interests beyond standard provisions
3. Special Industry Provisions: Industry-specific requirements for specialized cooperatives
4. Tax Matters: Specific tax treatment provisions for special tax considerations
1. Schedule A - Subscription Details: Detailed breakdown of subscription amount and payment schedule
2. Schedule B - Member Information Form: Detailed member information and contact details
3. Appendix A - Cooperative Bylaws: Complete bylaws of the cooperative
4. Appendix B - Member Policies: Detailed policies governing member conduct and responsibilities
5. Appendix C - Patronage Agreement: Specific terms related to patronage requirements and dividends
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