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Our company is a cooperative that was established on February 1, 1929 under a special tax code section in the IRS Regulations. This code section allows us to pay back our profits to our customers based on how much business was done with us during the previous year.

For example, let's assume that our profit before taxes amounted to 10% of our sales volume. If you were to spend $1,000.00 with the company during the fiscal year you would get a dividend of $100.00 ($1,000 times 10%). We currently pay 30% in cash and allocate the rest as equity stock in the company. You would then get a check for $30.00 and an equity allocation of $70.00. You are then a part owner in the company and the stock allocated to you is tracked under your name.

We typically do annual stock retirements where we retire the stock that was allocated in previous years. At this time we have retired equities up to what was allocated prior to 2000. The equity allocated this year will be eligible for retirement in future years. You do not get these kinds of refunds purchasing from non-cooperative suppliers.

Your dividend is generally taxable if you deduct your purchases from us for tax purposes as part of a business. Your dividend is not taxable if your purchases are not being deductible for tax purposes. Please consult with your tax advisor regarding the taxability of your dividend. Any future equity retirements are tax free regardless of whether your dividend was taxable.

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