From EcoReality

Part 4 -- Share Structure

Authorized share structure

(Rule 20) The capital of the EcoReality Sustainable Land Use and Education Cooperative consists of an unlimited number of membership shares, and an unlimited number of Class A preferred investment shares and an unlimited number of Class B preferred investment shares.

(Rule 21)

1. Membership shares:
   1. Each member subscribes to exactly one membership share.
2. Class A shares:
   1. have a par value of $1 per share;
   2. require a minimum initial investment of 10,000 shares;
   3. may be purchased by members or non-members with the approval of the directors;
   4. may not be held jointly;
   5. may bear stock dividends or stock split at a rate that shall be set by the directors from time to time, but at no time shall the rate set be lower than that applied to membership shares;
   6. stock dividends shall be declared and paid on Class A shares before any interest on membership shares, dividends, or patronage rebates are paid out to members;
   7. may not be transferred;
   8. have a three-year redemption notice, with a maximum number to be redeemed at one time, to be determined by the directors from time to time, in accordance with Part 4, Division 4 of The Cooperative Association Act;
   9. redemption of a Class A share shall be at its par value;
   10. upon dissolution, will be redeemed prior to membership shares.
3. Class B shares
   1. have a par value of $1 per share;
   2. may be issued by the directors to members or non-members:
      1. in exchange for tangible capital goods at fair market price, or
      2. in exchange for labor personally executed by a member on a capital project;
   3. may not be held jointly;
   4. do not bear interest nor dividend;
   5. may be subject to a negative stock split from time to time at a rate set by the directors, as the capital goods backing these shares age and depreciate;
   6. may not be transferred;
   7. can only be redeemed upon termination of membership or special resolution, at par value;
   8. upon dissolution, will be redeemed after Class A investment shares, but prior to redemption of membership shares.

(Rule 22) At no time shall the number of investment shares of any class issued to non-members exceed 50% of the total number of shares in that class.