Common use of Grain Inventory Clause in Contracts

Grain Inventory. As of the Effective Date (as defined in the Grain Facility Lease), Cargill will have in storage at the Grain Facility inventories of grain (the “Grain Inventory”) and will have certain amounts of corn under contract to arrive at the Grain Facility on or after the Effective Date (“To Arrive Grain”). As of the Effective Date, Producer agrees to purchase all of the Grain Inventory and To Arrive Grain at a price to be mutually agreed upon by the Parties as of the Effective Date. Cargill and Producer will select an independent third party to determine the quantity of the Grain Inventory by either weighing up or measuring up the Grain Inventory, and to determine the grade of the Grain Inventory by using an inspection agency satisfactory to Cargill and Producer. All samples of the Grain Inventory will be taken under the supervision of the Parties. The third party inspection agency will maintain the grain samples for 30 days.