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BEN HILL GRIFFIN, INC.
CITRUS MARKETING CONTRACT
This agreement, made and entered into this 26
th day of February , 2004 , by and
between BEN HILL GRIFFIN, INC. of Frostproof, Florida hereinafter
referred to as GRIFFIN and Alico, Inc. of Post Office Box
338, La Belle, FL 33975 hereinafter referred to as GROWER,
wherein GROWER agrees to sell and GRIFFIN agrees to buy the
following described fruit covering the 2004/2005 Fruit
Season and is written as a continuing contract to cover subsequent
fruit seasons subject to (1) modifications to meet changing
conditions and (2) cancellation by either party by giving notice to
August first preceding the next fruit season.
VARIETY # OF BOXES VARIETY # OF
BOXES
E/M Specialty Varieties
Valencia
Colored Grapefruit
LOCATION Grove located in
Polk, Hendry and Collier Counties
UTILIZATION: Delivery of this fruit shall be at
the discretion of Griffin, and unless otherwise provided, GRIFFIN
shall direct the flow of above fruit to whatever processing
facility it is best suited for use as concentrate, sections, or
fresh fruit. The title to all fruit delivered under the terms of
this agreement shall pass to GRIFFIN at time of
delivery.
SPECIFICATIONS: Each load of fruit must meet all
applicable laws and regulations and must meet GRIFFIN’S
delivery requirements. Each load of concentrate oranges must have a
minimum solids content of 10.5 Brix and a minimum ratio of
12.0.
POOLS:
CONCENTRATE: Five concentrate pools will be
operated: Early-Midseason Oranges, Late Oranges, White Grapefruit,
Colored Grapefruit and Mandarins. Honey Tangerines will be pooled
with Early-Midseason Oranges. The Mandarin Pool will include
Temples, Tangerines, Tangelos and all other Mandarin varieties.
Fruit not meeting GRIFFIN’S standard, but nevertheless
accepted under emergency conditions, may be placed in separate
pools.
SECTIONS: Three basic sections pools will be
operated: Duncan Grapefruit, White Grapefruit and Colored
Grapefruit. Fruit not meeting GRIFFIN’S standards, but
nevertheless accepted under emergency conditions, may be placed in
separate pools.
FRESH FRUIT: A pool will be operated for each
regular and late bloom variety. Eliminations will be processed as
concentrate or sections in accordance with the utilization
paragraph of this agreement.
CREDITS: GROWER’S account will be credited
with 100% of the amount of net pounds of fruit solids or the number
of net weight boxes delivered to and accepted by processing
facilities as determined by the State Inspection Service through
its standard test. Fresh fruit accounting will be on 1 3/5 bushel
standard box basis.
SERVICE FEE: For each box of fruit handled a fee
not to exceed $.08 per box will be assessed to GROWER’S
account.
RETURNS:
CONCENTRATE: Returns will be based on net
revenues received from concentrate returns applicable to each
pool.
SECTIONS: Returns will be based on net revenues
received from sections returns applicable to each pool.
FREASH FRUIT: Returns will be based on net sales
revenues by variety on a packed 1 3/5 bushel box equivalent basis,
less GROWER’S prorated share of GRIFFIN’S audited costs
regarding all fresh fruit, in addition to a charge shown
below:
CITRUS TYPE
FRESH FRUIT CHARGE
Oranges $.09 (Per packed
Carton)
Grapefruit $.09 (Per
packed Carton)
Temples, Tangelos and Tangerine $.125 (Per
packed Carton)
MARKETING FEES: A Marketing Fee will be charged
on fresh fruit at the rate of 1 ¼% of the net sales revenue
received by GRIFFIN for all fresh fruit sold.
HARVESTING: GRIFFIN will arrange for the picking,
hauling and delivery of the fruit covered by this contract
OR GROWER may exercise the privilege to make his own
arrangements for harvesting this fruit, subject to approval of
GRIFFIN.
In the event GRIFFIN is to arrange for harvesting
of this fruit, harvesting will begin as soon as practical after the
fruit meets State and USDA tests and GRIFFIN’S delivery
requirements.
Harvesting cost will be advanced by GRIFFIN and
will be charged to GROWER’S account.
In the event GROWER or his agent is to harvest
the fruit, arrangements must be made with GRIFFIN for the delivery
of this fruit after it meets applicable maturity standards. GRIFFIN
agrees to advance at no interest charge to GROWER, reasonable
harvesting costs and Growers who deliver their own
fruit.
PAYMENTS AND SETTLEMENT:
CONCENTRATE: GRIFFIN will make periodic advances
on concentrate pools from time to time throughout the year based on
realized sales returns for the respective pools, and final payment
will be made as soon as practicable after January 15 of each
year.
SECTIONS: GRIFFIN will make periodic advances on
sections pools from time to time throughout the year based on
realized sales returns for the respective pools, and final payment
will be made as soon as practicable after September 30 of each
year.
FRESH FRUIT: GRIFFIN will make periodic advances
on fresh fruit pools from time to time throughout the year based on
realized sales returns for the respective pools, and final payment
will be made as soon as practicable after September 30 of each
year.
SPECIAL ADVANCES: GRIFFIN may make advances
greater than those comp
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