8. In addition to the aforesaid estimated cost, the Association shall 

 deduct a sum to be determined by the Association in accordance with 



the provisions of Article of the By-Laws of this Association, which 



sum shall be known as a "retain" and for which the Association shall 

 issue revolving fund credits or other evidences of indebtedness in 



accordance with Article of the By-Laws of this Association. Said 



sum to be deducted as a "retain" shall be determined not later than 



, and notification shall be made to the 



Grower by mail. Said sum may be increased or decreased by the Associ- 

 ation upon days' notice in writing to the grower. 



9. The net proceeds shall be remitted to the Grower promptly after 

 making the deductions provided for herein. 



10. At the end of the year, or at any specified other period or 

 periods to be determined by the Association from time to time in 

 which said crops are sold, actual costs will be determined by the 

 Association. Any excess of estimated costs over actual costs will 

 be paid to the Grower » 



11. The term "actual costs" shall mean and be determined as follows: 

 Charges and expenses of every kind incurred or expended by the Associ- 

 ation in harvesting, transporting, delivering, receiving, handling, 

 inspecting, grading, packing, processing, financing, storing, insuring, 

 preserving, selling, or in performing any act, or rendering any service in 

 respect to Grower's crops, and also Grower's share of the Association's 

 general operating, maintenance, and over head expenses, including 

 interest and reasonable reserves for depreciation, obsolescence, bad 

 debts, and such other reserve purposes as are usually recognized by 



good accounting practices excluding capital reserves and expenditures 

 in the nature of capital investments. 



In determining the actual costs for each kind and class of crop, the 

 Association shall pool charges and expenses among the various crops 

 in such a manner that the same actual costs shall apply to all crops 

 of the same kind and class gro\-ra. within one crop district, but that 

 different actual costs shall apply to crops of the same kind and 

 class grown in different crop districts, when such difference is 

 found on good accounting practices. 



12. "Bad Debts" shall include but not be limited to: 



(a) All credit losses sustained by the Association in the handling 

 of produce for Growers which shall be absorbed by the Association as 

 part of its actual costs in the particular year in which said credit 

 losses shall occur. 



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