Any California Licensed Landscape Contractor (C-27 including sub-classifications) who is a Member of the Co-Op and purchases any of their General Liability, Business Auto, Umbrella, Workers Compensation, other qualifying Commercial lines coverage and/or Personal Lines (Homeowner’s, Personal Auto, etc.) insurance through Landscape Contractor’s Insurance Services (LCIS) from a program endorsed by Golden Oak Cooperative Corporation.

Gross eligible premium paid by employer member divided by total premium (all eligible vesting AND vested premium for qualified members) times eligible equity = Equity Share.

After 5 consecutive years of contributing eligible premium a Co-Op member will be eligible to share in equity earnings upon retirement. Once a member completes the 5-year milestone, then all ensuing eligible premiums count 100% toward the calculation of their equity share, as well as the first five years of consecutive premium.

An equity share may be requested upon retirement from the landscape industry, either by selling the business, retiring, death or otherwise alienating oneself from the industry, evidenced by ‘retiring’ one’s contractor license or other acts to be determined by the Board. A member may not simply quit the insurance program and be eligible for the “equity share”.

Equity Share value is calculated on or about June 30th of each year following the end of previous fiscal year.

Equity Shares are paid out once per year after the annual calculation of the Equity value. (Per the above, this is done each year approximately June 30th.) Equity shares are paid out per the following periods:

• $0 - $5,000 of equity value to be paid immediately upon Board approval;
• $5,001 - $10,000 equity value to be paid in two increments, over two years;
• $10,001 - $20,000 equity value to be paid in three increments, over three years;
• $20,001 and greater equity value to be paid in five increments, over five years.
• Requested Equity shares are paid upon Board approval of the annual equity value and verification of a member’s accumulated premium and their retirement from the industry.

Regardless of when the Member requests their payout, it is calculated as of that date and paid out upon the schedule above once per year. No interest is paid on equity amounts either while being earned or awaiting payout. The length of time from request for pay out and the date the first payout check is issued will vary and is subject to the requirements of value determination and verification of retirement.

An Equity Share may only be paid to the member as identified on the rolls of Golden Oak Cooperative Corporation and the entity participating in the insurance programs that qualify the member. Should the member wish to assign the Equity Share rights to an individual other than the member, a notarized statement must be sent to Golden Oak Cooperative Corporation notifying the Cooperative of this assignment along with the Federal Tax ID/SSN and mailing address information of the assigned party. The Directors of Golden Oak Cooperative Corporation may attach and redeem members earned equity share to satisfy any outstanding debt owed to LCIS, Birch Financial, Inc. or any other affiliate of Golden Oak Cooperative Corporation. No Equity Payouts will be made unless all premiums, fees and penalties are paid in full.

Should an Equity Share not be claimed it will be subject to forfeiture after 7 years of inactivity in the program.

The disadvantage of not claiming in the year of retirement is the value of the share may be diluted as the total premium grows.

General Liability, Business Auto, Umbrella, Workers Compensation, other qualifying Commercial lines coverage and/or Personal Lines (Homeowner’s, Personal Auto, etc.) insurance, (or any other programs to be added as Directors see fit), purchased through a program endorsed by Golden Oak Cooperative Corporation.

The value of net assets of the Co-Op includes all assets of the Co-Op and are determined by the Board of Directors who may at times solicit services of outside consultants. This determination will be at the sole discretion of the Board of Directors.