SHF ACQUISITION CORPORATION
0000 Xxxxxxxxx Xxxxxxxxx #000
Xxxxxxxxxx, XX 00000
Phone: 000-000-0000 Fax: 000-000-0000
May 7, 1999
Mr. Xxxx Xxxxx
Xxxxx Grain Company, Inc.
P. O. Box 799
Arbuckle, CA 95712
Dear Xxxx:
The following terms and conditions will govern the storage agreement between
Xxxxx Grain Co., Inc. (AGCo) and S.H.F. Acquisition Corporation (SHF).
1. SHF agrees to provide storage at its facility located at 00000 Xxxxxx
Xxxx 00X, Xxxxx Xxxxxxxxxx. The facility consists of two buildings, each
sized to store approximately 350,000 cwt. of wheat, safflower or other
grains. Xxxxx will be the sole tenant of the easternmost of these
buildings during this storage contract. The contract period will be from
June, 1999 through May 31, 2002. This contract will be reviewed each May
with an option to extend the contract an additional year if agreed by
both SHF and AGCo.
2. AGCo will fill the building to capacity (as determined by SHF) at least
once per year (June through May). AGCo will pay SHF as follows: A) Wheat
- $0.125/cwt. receiving (as harvested - May through July), $0.125/cwt.
shipping (when loaded out), and $0.05/cwt. storage per month in
September and October, B) Safflower - $0.175/cwt. receiving, and $0.175
shipping (when loaded out).
3. SHF will bill AGCo on the last day of each month for all receiving and
shipping charges incurred that month. AGCo will reconcile the bill and
pay within 20 days.
4. SHF's receiving house will coincide with AGCo's 102 facility harvest
receiving hours until the building is filled. Otherwise, SHF's
receiving/shipping hours will be 7AM to 3PM, Monday through Friday,
excepting holidays.
5. AGCo will deliver no more than 40 trucks of grain per day unless other
arrangements are made with SHF. AGCo will grade all trucks prior to
delivery and provide SHF with the grade. SHF will not dump any grain
without an AGCo grade.
6. SHF is responsible for maintaining quality of grain stored. SHF will
retain a sample of grain from every truck shipped from their facility
for AGCo. Grain needing fumigation will be done at AGCo's recommendation
and expense. SHF will convert tunnels from screens to perforated metal
at SHF's expense, as required, for wheat storage.
7. AGCo may inspect their grain stocks at any time during the storage
period. AGCo will absorb 1 percent loss or gain on grain storage. SHF
agrees that any loss or gain greater than 1 percent will be for their
account. SHF will provide daily scale weights and monthly inventory
statements to AGCo.
8. In the event that SHF sells the building to a third party during the
term of this Agreement, AGCo will fulfill the obligations for the
current harvest year and reserves the right to retain or void the
remaining years of the Agreement.
9. This Agreement replaces and supersedes that certain letter agreement
dated May 28, 1998 between SHF Acquisition Corp. and Xxxxx Grain Co.
relating to the storage and drying of grains at SHF's facility located
at 00000 Xxxxxx Xxxx 00X, Xxxxx Xxxxxxxxxx, except as the May 28, 1998
letter agreement pertains to corn stored at the SHF facility as of the
date of this agreement. With respect to that corn, the May 28, 1998
letter pertains.
10. AGCo acknowledges that it owns certain corn stored at SHF's facility (in
the westernmost building) as of the date of this agreement. AGCo agrees
that it will cause the corn to be shipped from the building by August
15, 1999.
Please sign and return the enclosed copy of this letter for confirmation of this
agreement.
Very truly,
/s/ XXXXX XXXXX
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Xxxxx Xxxxx
SHF Acquisition Corporation
Xxxxx Xxxxx, vice president
/s/ XXXX XXXXX
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Xxxx Xxxxx
Xxxxx Grain Company, Inc.
