ALBERT C. RITCHIE, GOVERNOR. 449

able for capital expenditures. The directors may then
set aside not to exceed five per cent of the remaining
net profits as an educational fund to be used in teaching co-
operation. The directors may then grant a bonus to employees
who are in the employ of the association at the time of the
apportionment of profits, which bonus shall be based in amount
upon the amount of compensation received by said employees
during the year at any rate not to exceed the rate of patronage
dividends hereinafter described.

The directors shall then distribute all remaining net profits
by a uniform dividend to members of the association based
in amount upon the value of business conducted by such
members with the association; provided that the association
may distribute to patrons of the association who are not mem-
bers bonuses based in amount upon the volume of business
transacted by such patrons respectively with the association;
provided further that any such dividend to a non-member
may be applied to the payment of membership fees or dues for
him; and, if so applied, when such fees are fully paid
a membership certificate shall be issued to him; provided
further that such dividends to a non-member, if it is less than
the membership fee, shall be credited to the non-member's
account during the first year and the second year, but shall
revert to the reserve fund if, after two years, an amount less
than the membership fee has accumulated.

(e. ) The members at any regular or special meeting, legally

called, may instruct the directors concerning the method of

apportionment of net profits to follow under the provision of

this section, in so far as these provisions confer discretion upon

the directors.

SEC. 491. a. Any association organized under this Act, as
agent to sell the products of members, may operate
upon a non-profit basis by contracting to pay the mem-
bers, for products sold by said members to or through the
association, the resale price minus a uniform charge to cover
the expenses involved in the handling of said products; re-
sale price to be the actual resale price or to be based upon the
average price during any period for products of the same
type and quality; the uniform charge for expense to be speci-
fied in the contract or made otherwise ascertainable or left
for determination by directors.

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