MATERIAL RISK DISCLOSURE STATEMENT. Please carefully consider the following risk factors in addition to your personal animal husbandry skills, management skills, experience and knowledge before signing the Agreement. · Performance under the terms of the Agreement does not ensure that you will make a profit. · The Agreement requires that you deliver a specific quantity of pigs for the entire term of the Agreement. This may turn out not to be the most beneficial way for you to market hogs. · You bear all risks of production of market hogs. · You are responsible for compliance with all applicable federal, state and local laws and regulations. · We may change our policies with respect to deductions for dead, fatigued or injured hogs and non-harvestable hogs from time to time. Such changes may mean that you are paid less for the same types of hogs you delivered prior to the change. · You agree to incur all freight costs to deliver hogs to our plant as marked in the Agreement. · If you are in default or amounts you owe us are past due, we may pay you less than amounts you are otherwise due. · We may terminate the Agreement prior to expiration of the term of the Agreement if you are in default. · We may terminate the Agreement prior to expiration of the term of the Agreement if we stop harvesting hogs at the plant(s) designated for delivery of your hogs. · If you are in default, we have the right to pursue any and all remedies available to us at law or in equity. · If you default, you must pay us damages set forth in the Agreement. Your Initials: /s/ G Date: 4/18/13 Contract No._________ Producer No._________ TABLE OF CONTENTS Introduction 1 Definition of “Agreement” 1 Definition of “Effective Date” 1 Definition of “PRODUCER” 1 Definition of “HORMEL FOODS” 1 1. Term 1 Definition of “Weanling Pig Agreement” 1
Appears in 2 contracts
Samples: Procurement Agreement (AgFeed Industries, Inc.), Procurement Agreement (AgFeed Industries, Inc.)
MATERIAL RISK DISCLOSURE STATEMENT. Please carefully consider the following risk factors in addition to your personal animal husbandry skills, management skills, experience and knowledge before signing the Agreement. SWINE PRODUCTION RISKS · Raising swine for profit depends on many factors. Performance under the terms of the Agreement does not ensure that you will make a profit. · The Agreement requires that you deliver a specific quantity Your profitability is affected by numerous factors. Such factors include, but are not limited to, your own animal husbandry and management skills, herd health, adverse weather conditions, and catastrophic loss of pigs for the entire term of the Agreement. This may turn out not to be the most beneficial way for you to market facilities or hogs. · You bear all risks of production of market hogs until risk of loss passes to us at our plant as specified in Section 11 of the Agreement, and which plant is subject to change. Such risks include, but are not limited to, poor farrowing rates, disease, death loss, poor feed conversion, and sort loss. · While you may be excused from failure to deliver the agreed number of hogs under the “Force Majeure” circumstances described in the Agreement, hog health or diseases (unless the subject of a governmental mandate) and financial and market conditions do not constitute acceptable excuses. · As set forth in the Agreement, you are required to comply with the National Pork Board’s Pork Quality Assurance Plus® Program and Transport Quality Assurance® Program, and any other HACCP, animal care, or quality program that may be established by us or any governmental agency, or by any industry-accepted group, and any changes to such programs. Changes in such programs may impose more stringent requirements, with related increased compliance costs, than the program requirements in place prior to the change. · We must agree to any changes to certain aspects of your hog production operation as set forth in the Agreement. Contract No. _____ Producer No. _____ FINANCIAL RISKS · The Agreement is not a “cost plus” contract. This means that you are not assured of covering all of your costs of operation, or of earning a profit, by performing in accordance with the Agreement terms. · The Agreement requires you and us to agree to a specific supply arrangement for the entire term of the Agreement. This may not be the most beneficial way for you to market your hogs. · Financing of your swine production operation may exceed costs anticipated by you. · Failure to make payments to repay a third party lender that has financed your swine production operation may cause your third party lender to foreclose on your facilities or take other collection actions. · As set forth in the Agreement, you are required to indemnify and hold us harmless from all liabilities, damages, claims, judgments, costs and expenses in connection with your breach of the Agreement. REGULATORY RISKS · You are responsible for compliance of your hog production operation with all applicable federal, state and local laws and regulations. Any noncompliance exposes you to fines and other enforcement actions. · You are responsible for obtaining all necessary permits to legally operate your facilities. Failure to obtain such permits may result in enforcement actions being taken against you by regulatory agencies. · You are responsible for properly storing, handling and disposing of manure from your facilities and for odors emanating from your facilities. You are exposed to liability for odors and for any manure spills or contamination caused by improper storage, handling or disposal. · Your hogs may be quarantined or destroyed by government agencies if the hogs are found to be diseased. · You are responsible for disposal of all dead hogs. You could be exposed to liability if you fail to properly dispose of all dead hogs. · You are solely responsible for the operation and management of your hog production operation, including but not limited to proper animal care and handling, and compliance with all applicable federal, state and local laws and regulations. · We may change our policies with respect , including criminal laws relating to deductions for dead, fatigued or injured hogs and non-harvestable hogs from time to time. Such changes may mean that you are paid less for the same types mistreatment of hogs you delivered prior to the change. · You agree to incur all freight costs to deliver hogs to our plant as marked in the Agreement. · If you are in default or amounts you owe us are past due, we may pay you less than amounts you are otherwise due. · We may terminate the Agreement prior to expiration of the term of the Agreement if you are in default. · We may terminate the Agreement prior to expiration of the term of the Agreement if we stop harvesting hogs at the plant(s) designated for delivery of your hogs. · If you are in default, we have the right to pursue any and all remedies available to us at law or in equity. · If you default, you must pay us damages set forth in the Agreement. Your Initials: /s/ G Date: 4/18/13 Contract Noanimals._________ Producer No._________ TABLE OF CONTENTS Introduction 1 Definition of “Agreement” 1 Definition of “Effective Date” 1 Definition of “PRODUCER” 1 Definition of “HORMEL FOODS” 1 1. Term 1 Definition of “Weanling Pig Agreement” 1
Appears in 2 contracts
Samples: Hog Procurement Agreement (AgFeed Industries, Inc.), Hog Procurement Agreement (AgFeed Industries, Inc.)
MATERIAL RISK DISCLOSURE STATEMENT. Please carefully consider the following risk factors in addition to your personal animal husbandry skills, management skills, experience and knowledge before signing the Agreement. SWINE PRODUCTION RISKS · Raising swine for profit depends on many factors. Performance under the terms of the Agreement does not ensure that you will make a profit. · The Agreement requires that you deliver a specific quantity Your profitability is affected by numerous factors. Such factors include, but are not limited to, your own animal husbandry and management skills, herd health, adverse weather conditions, and catastrophic loss of pigs for the entire term of the Agreement. This may turn out not to be the most beneficial way for you to market facilities or hogs. · You bear all risks of production of market hogs until risk of loss passes to us at our plant as specified in Section 11 of the Agreement, and which plant is subject to change. Such risks include, but are not limited to, poor farrowing rates, disease, death loss, poor feed conversion, and sort loss. · While you may be excused from failure to deliver the agreed number of hogs under the “Force Majeure” circumstances described in the Agreement, hog health or diseases (unless the subject of a governmental mandate) and financial and market conditions do not constitute acceptable excuses. · As set forth in the Agreement, you are required to comply with the National Pork Board’s Pork Quality Assurance Plus® Program and Transport Quality Assurance® Program, and any other HACCP, animal care, or quality program that may be established by us or any governmental agency, or by any industry-accepted group, and any changes to such programs. Changes in such programs may impose more stringent requirements, with related increased compliance costs, than the program requirements in place prior to the change. · We must agree to any changes to certain aspects of your hog production operation as set forth in the Agreement. Contract No. _____ Producer No. _____ FINANCIAL RISKS · The Agreement is not a “cost plus” contract. This means that you are not assured of covering all of your costs of operation, or of earning a profit, by performing in accordance with the Agreement terms. · The Agreement requires you and us to agree to a specific supply arrangement for the entire term of the Agreement. This may not be the most beneficial way for you to market your hogs. · Financing of your swine production operation may exceed costs anticipated by you. · Failure to make payments to repay a third party lender that has financed your swine production operation may cause your third party lender to foreclose on your facilities or take other collection actions. · As set forth in the Agreement, you are required to indemnify and hold us harmless from all liabilities, damages, claims, judgments, costs and expenses in connection with your breach of the Agreement. · As a personal guarantor of the obligations under the Agreement, you may become personally liable to us for the payment and performance of all obligations owed to us under the terms of the Agreement. REGULATORY RISKS · You are responsible for compliance of your hog production operation with all applicable federal, state and local laws and regulations. Any noncompliance exposes you to fines and other enforcement actions. · You are responsible for obtaining all necessary permits to legally operate your facilities. Failure to obtain such permits may result in enforcement actions being taken against you by regulatory agencies. · You are responsible for properly storing, handling and disposing of manure from your facilities and for odors emanating from your facilities. You are exposed to liability for odors and for any manure spills or contamination caused by improper storage, handling or disposal. · Your hogs may be quarantined or destroyed by government agencies if the hogs are found to be diseased. · You are responsible for disposal of all dead hogs. You could be exposed to liability if you fail to properly dispose of all dead hogs. · You are solely responsible for the operation and management of your hog production operation, including but not limited to proper animal care and handling, and compliance with all applicable federal, state and local laws and regulations. · We may change our policies with respect , including criminal laws relating to deductions for dead, fatigued or injured hogs and non-harvestable hogs from time to time. Such changes may mean that you are paid less for the same types mistreatment of hogs you delivered prior to the change. · You agree to incur all freight costs to deliver hogs to our plant as marked in the Agreement. · If you are in default or amounts you owe us are past due, we may pay you less than amounts you are otherwise due. · We may terminate the Agreement prior to expiration of the term of the Agreement if you are in default. · We may terminate the Agreement prior to expiration of the term of the Agreement if we stop harvesting hogs at the plant(s) designated for delivery of your hogs. · If you are in default, we have the right to pursue any and all remedies available to us at law or in equity. · If you default, you must pay us damages set forth in the Agreement. Your Initials: /s/ G Date: 4/18/13 Contract Noanimals._________ Producer No._________ TABLE OF CONTENTS Introduction 1 Definition of “Agreement” 1 Definition of “Effective Date” 1 Definition of “PRODUCER” 1 Definition of “HORMEL FOODS” 1 1. Term 1 Definition of “Weanling Pig Agreement” 1
Appears in 2 contracts
Samples: Hog Procurement Agreement (AgFeed Industries, Inc.), Hog Procurement Agreement (AgFeed Industries, Inc.)
MATERIAL RISK DISCLOSURE STATEMENT. Please carefully consider the following risk factors in addition to your personal animal husbandry skills, management skills, experience and knowledge before signing the Agreementthis contract. · SWINE PRODUCTION RISKS Ÿ Raising swine for profit depends on many factors. Performance under the terms of the Agreement this contract does not ensure that you will make a profit. · Your profitability is affected by numerous factors. Such factors include, but are not limited to, your own animal husbandry and management skills, herd health, adverse weather conditions, and catastrophic loss of facilities or hogs on account of factors beyond your control. Ÿ You bear all risks of production of market hogs until delivery to our plant and acceptance of hogs by us. Such risks include, but are not limited to, poor farrowing rates, diseased or injured hogs, death loss, poor feed conversion, and sort loss. Ÿ You are required to comply with any change in the PRC Law of Food Hygiene and the Administrative Measures for the Hygiene of Meat and Meat Products, and any HACCP program established by us. The Agreement requires requirements of such programs may be more stringent than the current requirements of the PRC Law and National Slaughtering Authentication Center. FINANCIAL RISKS Ÿ This contract is not a “cost plus” contract. This means that you deliver are not assured of covering all of your costs of operation, or of earning a profit, by performing in accordance with the contract terms. Ÿ This long-term contract requires you and us to agree to a specific quantity of pigs supply arrangement for the entire term of the Agreementcontract. This may turn out not to be the most beneficial way for you to market hogs. · You bear all risks of production of market hogs. · You are responsible for compliance with all applicable federal, state and local laws and regulations. · We may change our policies with respect to deductions for dead, fatigued or injured hogs and non-harvestable hogs from time to time. Such changes may mean that you are paid less for the same types of hogs you delivered prior to the change. · You agree to incur all freight costs to deliver hogs to our plant as marked in the Agreement. · If you are in default or amounts you owe us are past due, we may pay you less than amounts you are otherwise due. · We may terminate the Agreement prior to expiration of the term of the Agreement if you are in default. · We may terminate the Agreement prior to expiration of the term of the Agreement if we stop harvesting hogs at the plant(s) designated for delivery of your hogs. · If Ÿ Financing of construction or operation of your swine facilities may exceed costs anticipated by you. Ÿ Failure to make payments to repay a third-party lender that has financed construction or operation of your swine facilities may cause your third-party lender to foreclose on the facility or take other collection actions. Any default by you under your financing agreement will also constitute a default under this contract. Ÿ You are in defaultrequired to indemnify and hold us harmless from all liabilities, we have the right damages, claims, judgments, costs and expenses arising out of your failure to pursue any and all remedies available to us at law or in equity. · If you default, you must pay us damages set forth in the Agreement. Your Initials: /s/ G Date: 4/18/13 Contract Noperform this contract._________ Producer No._________ TABLE OF CONTENTS Introduction 1 Definition of “Agreement” 1 Definition of “Effective Date” 1 Definition of “PRODUCER” 1 Definition of “HORMEL FOODS” 1 1. Term 1 Definition of “Weanling Pig Agreement” 1
Appears in 1 contract
MATERIAL RISK DISCLOSURE STATEMENT. Please carefully consider the following risk factors in addition to your personal animal husbandry skills, management skills, experience and knowledge before signing the Agreementthis contract. · SWINE PRODUCTION RISKS • Raising swine for profit depends on many factors. Performance under the terms of the Agreement this contract does not ensure that you will make a profit. · Your profitability is affected by numerous factors. Such factors include, but are not limited to, your own animal husbandry and management skills, herd health, adverse weather conditions, and catastrophic loss of facilities or hogs on account of factors beyond your control. • You bear all risks of production of market hogs until delivery to our plant and acceptance of hogs by us. Such risks include, but are not limited to, poor farrowing rates, diseased or injured hogs, death loss, poor feed conversion, and sort loss. • You are required to comply with any change in the Pork Quality Assurance Program of America’s Pork Producers and any HACCP program established by us. The Agreement requires requirements of such programs may be more stringent than the current Level III requirements of the Pork Quality Assurance Program. FINANCIAL RISKS • This contract is not a “cost plus” contract. This means that you deliver are not assured of covering all of your costs of operation, or of earning a profit, by performing in accordance with the contract terms. • This long-term contract requires you and us to agree to a specific quantity of pigs supply arrangement for the entire term of the Agreementcontract. This may turn out not to be the most beneficial way for you to market your hogs. · • Financing of construction or operation of your swine facilities may exceed costs anticipated by you. • Failure to make payments to repay a third-party lender that has financed construction or operation of your swine facilities may cause your third-party lender to foreclose on the facility or take other collection actions. Any default by you under your financing agreement will also constitute a default under this contract. • You bear are required to indemnify and hold us harmless from all risks liabilities, damages, claims, judgments, costs and expenses arising out of production your failure to perform this contract. • You and all other owners of market hogsthe producer that is a party to this contract, as personal guarantors of its obligations under the contract, may become personally liable to us for the payment and performance of all obligations owed to us under the terms of this contract. · Contract No. REGULATORY RISKS • You are responsible for compliance with obtaining all applicable federalnecessary permits to legally construct and operate your facilities. Failure to obtain such permits may result in enforcement actions being taken against you by regulatory agencies. • You are responsible for properly storing, state handling and local laws and regulationsdisposing of manure from your facilities. · You are exposed to liability for any manure spills or contamination caused by improper storage, handling or disposal. This contract has been downloaded from the Iowa Department of Justice xxxxx://xxx.xxxxxxxxxxxxxxxxxxx.xxx/. Viewing has been authorized free of charge • Your hogs may be quarantined or destroyed by animal health or other regulatory agencies if the hogs are found to be diseased. • You are responsible for disposal of all dead hogs. You could be exposed to liability if you fail to properly dispose of all dead hogs. PAYMENT RISKS • We may change our policies with respect to deductions for dead, fatigued or injured hogs and non-harvestable hogs station delivered freight discount from time to time. Such changes may mean that you are paid less for hogs you deliver to our buying station. • We may change our Carcass Buying Program premiums and discounts from time to time. Such changes may mean that you are paid less under this Program for the same types type of hogs you delivered prior to the change. · You agree • We may change the Floor Price Matrix under certain circumstances. Such changes may mean that you are paid less for your hogs as compared to incur all freight costs prior to deliver the change. • The factors used in calculating the Matrix Price per carcass cwt. will change from time to time. Such changes may mean that you are paid less for your hogs as compared to our plant as marked in prior to the Agreementchange. · • If you are in default, we may pay you a lower price for your hogs for so long as the default or amounts continues. • If you owe us are past duein default, we may pay you less than amounts you are otherwise duedue from us by offsetting amounts you owe us. · TERMINATION RISKS • We may terminate the Agreement this contract prior to expiration of the term of the Agreement contract if you are in default. · • We may terminate the Agreement this contract prior to expiration of the term of the Agreement contract if we stop harvesting slaughtering hogs at the plant(s) designated for delivery plant to which your hogs are being delivered and retain ownership of your hogssuch plant. · • If you are in default, we have the right to pursue any and all remedies available to us it at law or in equity. · If you default, you must pay These remedies include any remedies granted to us damages set forth in the Agreement. Your Initials: /s/ G Date: 4/18/13 Contract Nounder this contract._________ Producer No._________ TABLE OF CONTENTS Introduction 1 Definition of “Agreement” 1 Definition of “Effective Date” 1 Definition of “PRODUCER” 1 Definition of “HORMEL FOODS” 1 1. Term 1 Definition of “Weanling Pig Agreement” 1
Appears in 1 contract
Samples: Procurement Agreement
MATERIAL RISK DISCLOSURE STATEMENT. Please carefully consider the following risk factors in addition to your personal animal husbandry skills, management skills, experience and knowledge before signing the Agreementthis contract. · SWINE PRODUCTION RISKS • Raising swine for profit depends on many factors. Performance under the terms of the Agreement this contract does not ensure that you will make a profit. · Your profitability is affected by numerous factors. Such factors include, but are not limited to, your own animal husbandry and management skills, herd health, adverse weather conditions, and catastrophic loss of facilities or hogs on account of factors beyond your control. • You bear all risks of production of market hogs until delivery to our plant and acceptance of hogs by us. Such risks include, but are not limited to, poor farrowing rates, diseased or injured hogs, death loss, poor feed conversion, and sort loss. • You are required to comply with any change in the Pork Quality Assurance Program of America’s Pork Producers and any HACCP program established by us. The Agreement requires requirements of such programs may be more stringent than the current Level III requirements of the Pork Quality Assurance Program. FINANCIAL RISKS • This contract is not a “cost plus” contract. This means that you deliver are not assured of covering all of your costs of operation, or of earning a specific quantity profit, by performing in accordance with the contract terms. • This contract requires you to supply all of pigs your market hogs to us for the entire term duration of the Agreementcontract. This may turn out not to be the most beneficial way for you to market your hogs. · You bear all risks • Financing of production construction or operation of market hogsyour swine facilities may exceed costs anticipated by you. · REGULATORY RISKS • You are responsible for compliance with obtaining all applicable federalnecessary permits to legally construct and operate your facilities. Failure to obtain such permits may result in enforcement actions being taken against you by regulatory agencies. • You are responsible for properly storing, state handling and local laws and regulationsdisposing of manure from your facilities. · You are exposed to liability for any manure spills or contamination caused by improper storage, handling or disposal. • Your hogs may be quarantined or destroyed by animal health or other regulatory agencies if the hogs are found to be diseased. • You are responsible for disposal of all dead hogs. You could be exposed to liability if you fail to properly dispose of all dead hogs. This contract has been downloaded from the Iowa Department of Justice xxxxx://xxx.xxxxxxxxxxxxxxxxxxx.xxx/. Viewing has been authorized free of charge Contract No. PAYMENT RISKS • We may change our policies with respect to deductions for dead, fatigued or injured hogs and non-harvestable hogs station delivered freight discount from time to time. Such changes may mean that you are paid less for hogs you deliver to our buying station. • We may change our Carcass Buying Program premiums and discounts from time to time. Such changes may mean that you are paid less under this Program for the same types type of hogs you delivered prior to the change. · TERMINATION RISKS • This contract has an initial 6-month term, which automatically renews unless either party terminates the contract. You agree to incur all freight costs to deliver hogs to our plant as marked in the Agreement. · If you are in default or amounts you owe us are past due, we may pay you less than amounts you are otherwise dueterminate this contract at the end of any 6-month term upon 30 days’ notice. · • We may terminate the Agreement this contract prior to expiration of the term of the Agreement contract if you are in default. · • We may terminate the Agreement this contract prior to expiration of the term of the Agreement contract if we stop harvesting slaughtering hogs at the plant(s) designated for delivery of plant to which your hogs. · If you hogs are in default, we have the right to pursue any and all remedies available to us at law or in equity. · If you default, you must pay us damages set forth in the Agreement. Your Initials: /s/ G Date: 4/18/13 Contract Nobeing delivered._________ Producer No._________ TABLE OF CONTENTS Introduction 1 Definition of “Agreement” 1 Definition of “Effective Date” 1 Definition of “PRODUCER” 1 Definition of “HORMEL FOODS” 1 1. Term 1 Definition of “Weanling Pig Agreement” 1
Appears in 1 contract
Samples: Procurement Agreement