DUES COMPUTATION SCHEDULE

The North Carolina Aggregates Association has two classes of membership, Producer Members and Associate Members.

Producer membership is open to any company engaged in the production and/or sale of sand, gravel, crushed stone or other aggregate products in North Carolina. Also, individuals, firms or companies not actively engaged in the production and/or sale of aggregates but who serve the industry with products or services are eligible for Associate Membership. The Annual Membership Dues, set by the Board of Directors, are calculated as follows:

PRODUCER MEMBERS:

By February 1st each year, every producer company reports the number of plants in each production class for the prior year. Each class has a ?"weighting factor" or "unit" value. The units are summed for all plants reported by a member.

Class	Annual Production	Weighting Factor	Annual 2007 Dues Per Plant
A	Over 500,000 tons	8	$5,368
B	250,000 to 500,000 tons	4	$2,684
C	Less than 250,000 tons	2	$2,120 minimum

For example, a company with 2 Class A plants (2x8 = 16) and 1 Class B plant (1x4 = 4) would have 20 units. The total units of all member companies based upon 2005 production equals 379 units.

Each unit has a dollar value set in the prior year and adjusted annually based on the average change in the federal Producer Price Index for the previous 12-month period, November to November. Any dues increase is limited to 6 percent. The per unit value for 2007 is $671.

Therefore, 379 units at $671 per unit provide producer member revenue of $254,309 (approximately 85 percent of budget).

To provide a means of balancing or equalizing the financial burden between larger and smaller producers, a discount system (I or II) is applied for companies with a large number of plants as follows:

First 5 plants - Pay full amount
Over 5 plants - Pay 1/2
Over 10 plants - Pay 1/4
Over 15 plants - Pay 1/8

This discount is applied when calculating the units per company and can be applied to 1) the number of units in each Class (Discount I) or 2) to the total number of units per company (Discount II) whichever provides the largest discount. Let?s take an example company with:

Class A - 8 plants
Class B - 3 plants
Class C - 1 plant

	Plants	No Discount	Discount I	Discount II
Class A (8 units)	8	8x8 = 64	5x8 = 40 3x4 = 12
Class B (4 units)	3	3x4 = 12	3x4 = 12	5x8 = 40 5x4 = 20 2x2 = 4
Class C (2 units)	1	1x2 = 2	1x2 = 2
Total Plants	12
Total Units		78	66	64

Hence, Discount II yielding 64 units will provide the largest discount. Company dues would then be 64 x $671 = $42,944.

There are no maximum dues. Minimum producer dues are $2,120. Producer members may elect to pay quarterly. Payment for the full year is encouraged.

ASSOCIATE MEMBERS:

All Associate Members pay a flat $1130 per year.