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products “who reside in the territory served”. “Producers”
referred to persons “actually engaged in the production of one or
more of the agricultural products handled” by MCP. Producers of
agricultural products eligible for membership and having acquired
a minimum of 5 shares of common stock of MCP were recognized as
members.
a. Units of Equity Participation
Mr. Fultz purchased shares of stock in MCP in approximately
August 1982 when MCP was first organized. Subsequently, before
June 1995, Mrs. Fultz also acquired stock in MCP. Both
petitioners held enough shares of MCP stock in 1995 to qualify as
members of MCP. As members, they were able to purchase
additional “units of equity participation” (units) in MCP.
Between July 1984 and June 1992, Mr. Fultz purchased a total of
20,000 units. During the years in issue, Mr. Fultz purchased
10,000 units in June 1994 and 5,000 units in December 1995. In
addition, Mr. Fultz executed a subscription agreement in January
1995 in which he agreed to pay for an additional 10,000 units
with a 10-percent downpayment immediately and the remainder due
in two later installments. The record does not indicate whether
this transaction was completed. Mrs. Fultz purchased 2,000 units
in June 1995 and 2,500 units in December 1995. Each unit
represented one potential bushel of corn that the member might
agree to supply to MCP.
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