72 BULiLETIF 1106, U. S. DEPARTMENT OF AGRICULTTJKE. 



Sec. 3. No stock shall be issued or delivered by the association to any sub- 

 scriber until he has paid the full price therefor. 



Sec. 4. Transfers of shares will be made upon the books of the association 

 only when the stockholder is free from indebtedness to the association. 



Sec. 5. Whenever any stockholder desires to sell his stock he shall first offer 

 it to the association for purchase by it or by a person or persons designated 

 by the board of directors of the association at a price to be conclusively de- 

 termined by the board of directors.' In the event the stock is not purchased by 

 the association, or by a person or persons designated as aforesaid, within 30 

 days after the receipt of a written notice by the association offering the stock 

 for sale, then the stockholder may sell the stock to any person engaged in the 

 production of agricultural products. This restriction on the transfer of stock 

 shall be printed on every certificate of stock. 



Sec. 6. If any member shall by purchase or by the operation of law come 



into possession of more than shares of the capital stock of this 



association, the board of directors may elect to purchase, and such member 

 shaU then sell to the association such excess shares at a price to be con- 

 clusively determined by the board of directors, plus any dividends or refunds 

 due and unpaid. Also, in the event of the death or disability of the owner of 

 any shares of stock in this association such shares of stock may be purchased 

 by the association and shall, in the event the board of directors elects to purchase 

 them, be sol(i by the legal representatives of such owner to the association at a 

 price to be conclusively determined by the board of directors, plus any dividends 

 or refunds due and unpaid. 



Note. — The law of the State in which the association is organized 

 should be carefully examined to determine the status of sections 

 4, 5, and 6 of this article. In general, provision should be made 

 for them in the charter in order that they may be legal. 



FORM OF CONTRACT. 



The form of contract which is here given is simply suggestive and 

 is designed to serve only as a guide in the preparation of a contract 

 for use by an association, and, of course, like the form of by-laws, 

 should be considered with respect to the law of the State where the 

 association is to operate. 



The Cooperative Association. 



standaed foem of ceop contract. 



This Agreement, made and entered into at on this 



day of , A. D. 19—, between the 



Association, formed under the laws of the State of 



, having its principal place of business at 



, in the said State (hereinafter referred to as the 



association), and , a grower of (fruit and vegetables) of 



, county of , State of 



(hereinafter referred to as the grower), witnesseth : 



That for and in consideration of the expenses to be incurred by the associa- 

 tion in providing means and facilities for handling, storing, and marketing 

 (fruits and vegetables), including the expense of locating, organizing, and es- 



