ApplicationForMembershipandSubscriptiontoPurchaseOneShareofCommonStock

Bysigningthisapplicationformembershipandsubscriptionagreementandpaying$500totheCooperative,theundersignedagrees:(1)topurchaseoneshareofmembershipcommonstock(“commonstock”)ofMidwestOrganicFarmersCooperative(hereafterthe"Cooperative"),parvalue$1.00pershare,tobecomeamemberoftheCooperative,subjecttotheArticlesofIncorporation,BylawsandpoliciesoftheCooperative; (2)that theproceedsfromthesaleofthecommonstockwillbeusedbytheCooperativetomeettheworkingcapitalrequirements;(3)thattheentirepaymentforthemembershipfeeisat-risk,willnotbeplacedintoanytypeofescrowaccountandwillbeimmediatelyusedbytheCooperativeforworkingcapital,andpossiblymaynotbereturneduponredemptionofstock;(4)thattheundersignedwillforfeititsmembershipintheCooperativeiftheundersignedfailstoenterintoamarketingagreementwiththeCooperativeoriftheundersignedotherwisefailstoqualifyformembershipundertheCooperative'sArticlesandBylaws;and(5)tobeboundbythetermsandconditionssetforthonthereversesideof thisapplication.UponacceptancebyanauthorizedagentfortheCooperative,thisapplicationshallbecomethebindingMembershipandSubscriptionAgreementbetweentheundersignedandtheCooperative.

PLEASEPRINT–APPLICATIONINFORMATION
ApplicantName(NameofIndividual,Partnership,or Corporation)
AuthorizedRepresentativeandTitleE-Mail Address: Street RouteNo. BoxNo. City State Zip County
TelephoneNo.MobileNumber:FaxNo.
TYPEOFAPPLICANT–CHECKONE:
IndividualProprietorshipPartnershipCorporationLLCOther
SocialSecurityNumberofParFederalTax IdentificationNo.Othertnership,LLC,Corporation,or
ofIndividual
OR
ORGANICCERTIFICATION
Iamacertifiedorganicproducer(oratleastsomeofmyacreageisIamnotacertifiedorganicproducer,butamin transition towardcertifiedorganic) AND certification,oratleastsomeofmyacreageistransitional.
Totalcertified organic acreage:/Acreage:Yearsofinitial certification: OR Yearsoftransition:
Organiccertificationagency:Yearofexpectedcertification:Certificationagencymember#/producer#: Certificationagency:
Certification--Underthepenaltiesofperjury,Icertifythat:
(1)Thenumbershownonthisformisthecorrecttaxpayeridentificationnumberoftheapplicant(orapplicantiswaitingforanumbertobeissued).
(2)Theapplicantisaresidentoforhasaprincipalplaceofbusinessinthestateindicatedabove.
(3)Theapplicantisanorganicfarmproducerorisanassociationofsuchorganicfarmproducers.An“organicfarmproducer”isanagriculturalproducerwhohasbeenapprovedforandismaintainingorganiccertificationfromathirdpartyindependentcertifyingagencythathasbeenapprovedbytheBoardofDirectorsorhasappliedforandisactivelyworkingandprogressingtowardssuchorganiccertification.
(4)Theapplicanthasread,understands,andacceptsthestatedtermsandconditionssetforthonthereversesideofthisAgreement.
(5)Theapplicanthasbeenprovidedwithalloftheinformation thatitbelievesnecessarytoacompleteunderstandingoftheCooperativeanditsproposedmembershiptherein.
PleaseSignHere / Signature:Title(ifapplicable):Date:

Accepted:

MIDWESTORGANICFARMERSCOOPERATIVE

By:Date______(AuthorizedAgent)

IMPORTANT:TERMSANDCONDITIONSARESETFORTHONTHEREVERSESIDEOFTHISAGREEMENT

THE COOPERATIVE

TheCooperativewasincorporatedonMarch15,2001,pursuanttotheprovisionsoftheIllinoisAgriculturalCooperativeAct.TheCooperativeisgovernedbyaBoardofDirectors("theBoard"),thenumberandqualificationsofwhichshallbeasprescribedintheBylawsoftheCooperative.TheCooperativeisorganizedwithcapitalstockconsistingof5,000sharesofmembershipcommonstockwith aparvalueof$1.00pershare.Thecommonstockisnon-transferable.TheannualnetincomeoftheCooperativeinexcessofdividendsonequitycapitalandadditionstoreservesshallbedistributedonthebasisofpatronagetotheCooperative,asmoreparticularlyprovidedintheBylawsoftheCooperative.AcopyoftheCooperative'sArticlesandBylawsareavailableforinspectionattheofficeoftheCooperativeanduponrequest.

COMMONSTOCKANDMEMBERSHIP

TheholdersofcommonstockarethemembersoftheCooperative,andonlytheholdersofcommonstockhavevotingrightsintheCooperative.Nopersonmayholdmorethanoneshareofcommonstock.EachmembershallhaveonevoteintheaffairsoftheCooperative.Thecommonstockmaybeheldonlybyproducersofagriculturalproductsandassociationsofsuchproducers.“Producersofagriculturalproducts”meanspersons(includingindividualsandjointventures,corporations,partnerships,limitedliabilitycompanies,limitedliabilitypartnerships,unincorporatedassociationsorotherlegalentitiesownedorcontrolledbyindividualfarmers,ranchersortheirfamilygroups)thatareengagedintheproductionofoneormoreagriculturalproducts,includingtenantsoflandusedfortheproductionofsuchproductsandlessorsofsuchlandthatreceiveasrentthereforanypartoftheproductofsuchland.Eachpersonwhosignsthisapplicationiscertifyingthattheyareanagriculturalproduceroranassociationofsuchproducers.Inaddition,theyarecertifyingtheyare organic farmproducers or intransitiontoorganic.Anorganicfarmproducerisanagriculturalproducerwhohasbeenapprovedfor,andismaintainingorganiccertificationbyathirdpartyindependentcertifyingagencythathasbeenapprovedbytheBoardofDirectorsorhasappliedforandisactivelyworkingandprogressingtowardsuchcertification.Thecommonstockcannotappreciateinvalue.ThecommonstockmayonlyberedeemedasprovidedintheArticlesandBylawsoftheCooperative,whichprovideinpartthatthecommonstockmayneverberedeemedfor anamountwhichexceedsthevalueoftheconsiderationfor whichthecommonstockwasissued.Nodividendsmaybepaidoncommonstock.

EachpersonwhosignsthisapplicationunderstandsthatmembershipintheCooperativeisrestrictedtothosepersonswhomeeteachofthemembershiprequirementssetforthintheArticlesandBylawsoftheCooperative,andthatfailuretomeetthosemembershiprequirementsonanongoingbasiswillresultinterminationofmembership.AsfurtherprovidedintheArticlesandBylaws,thosemembershiprequirementsinclude:(1)owningoneshareofcommonstock;(2)enteringintoamarketingagreementwiththeCooperative;and(3)suchotherconditionsofmembershipastheBoardofDirectorsmayestablish.

NOTICEOFADOPTIONOFCONSENTBYLAW

ThepersonwhosignsthisapplicationisherebynotifiedthattheCooperativehasadoptedthefollowing"ConsentBylaw"provisionsaspartofBylaw8andBylaw10ofitsBylaws:

Section8.01.Consent toTakePatronageDistributions IntoIncome.Eachpersonwhohereafterapplies forandisacceptedtomembershipinthiscooperativeandeachmemberofthiscooperativeasoftheeffectivedateofthisbylawwhocontinuesasamemberaftersuchdateshall,bysuchactalone,consentthattheamountofanydistributionswithrespecttoitspatronagewhicharemadeinwrittennoticesofallocation(asdefinedin26U.S.C.§1388),andwhicharereceivedbythememberfromthiscooperative,willbetakenintoaccountbythememberattheirstateddollaramountsinthemannerprovidedin26U.S.C.§1385(a)inthetaxableyearinwhichthewrittennoticesofallocationarereceivedbythemember.

Section10.02.ConsenttoTakeQualifiedPerUnitRetainsIntoIncome.Eachpersonwhohereafterappliesforandisacceptedtomembershipinthiscooperativeandeachmemberofthiscooperativeasoftheeffectivedateofthisbylawwhocontinuesasamemberaftersuchdateshall,bysuchactalone,consentthattheamountofanyper-unitretaincertificateauthorizedbythisbylawanddesignatedbytheBoardofDirectorstoconstitutea"qualifiedper-unitretaincertificate,"andwhich arereceived bythememberfromthiscooperative,will betakenintoaccount bythememberatitsstateddollaramountinthemannerprovidedin26U.S.C.§1385(a)inthetaxableyearinwhichthequalifiedper-unitretaincertificatesarereceivedbythemember.Thepurposeofthisconsentbylawistomakeaper-unitretaincertificate sodesignatedbythe BoardofDirectorsa"qualifiedper-unitretaincertificate"withinthemeaningof26U.S.C.§1388.

STATEMENTOFSIGNIFICANCEOFCONSENTBYLAW

ThesignificanceofthesebylawprovisionsisthatbythesoleactofbecomingamemberorcontinuingasamemberintheCooperative,youagreetotakeintoaccountinyourfederalincometaxreturnthestateddollaramountofany"qualifiedwrittennoticesofallocation"distributedtoyoufromtheCooperativeandanyper-unitretainsissuedtoyoubytheCooperativewhicharedesignatedas"qualifiedper-unitretains",inthemannerprovidedinSection1385(a)oftheUnitedStatesInternalRevenueCode(the"Code").Essentially,thismeansthatthestateddollaramountofsuchwrittennoticesofallocationandper-unitretainsmustbeincludedinyourtaxableincomeintheyearinwhichreceived.ThesetermsaredefinedinSection1388oftheCode.Inadditiontoanyamountsincludedinyourtaxableincomepursuanttotheforegoing,youwillalsoberequiredtoreportastaxableincomethecashportionofanypatronagedividendpaidtoyoubytheCooperative.