▇▇▇▇▇ GRAIN CO.
P. O. Box 799
Arbuckle, CA 95712
May 28, 1998
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S.H.F. Acquisition Corp.
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Dear ▇▇▇▇:
The following terms and conditions will govern the storage agreement between
▇▇▇▇▇ Grain Co. Inc. (AGCo) and S.H.F. Acquisition Corp. (SHF):
1) SHF agrees to provide storage and drying at their facility located at
▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇, ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇. The facility consists of two buildings
sized to each store 300,000 cwt. of wheat, corn, or safflower. ▇▇▇▇▇ will be the
sole tenant at the facility during this storage agreement. The contract period
will be from June 1998 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) ▇▇▇▇▇ will fill each building to capacity (as determined by SHF) at
least once per year (June through May). AGCo will pay SHF as follows: A) Wheat -
$0.10/cwt. receiving (as harvested- May through July), $0.075/cwt. (each for
September and October), and $0.10/cwt. shipping (when loaded out). AGCo is
responsible for an additional $0.05/cwt. charge on unused storage capacity if
the building is filled at harvest, emptied before September, and then partially
filled with another commodity. B) Corn - $0.175/cwt. receiving (on dried weight,
as harvested-September through December) and $0.175/cwt. shipping (when loaded
out). C) Safflower - $0.175/cwt. receiving, and $0.175/cwt. shipping.
3) SHF will dry any corn that is 15.6% or higher moisture (per AGCo grade)
to 14.5%. SHF shall store the corn at moistures between 14.0% and 15.5%. AGCo
will pay SHF the following for drying (on received weight):
Moist % $/cwt Moist % $/cwt Moist % $/cwt
15.6-15.9 0.30 20.0-20.9 0.45 25.0-25.9 0.70
16.0-16.9 0.325 21.0-21.9 0.50 26.0-26.9 0.75
17.0-17.9 0.35 22.0-23.9 0.55 27.0-27.9 0.80
18.0-18.9 0.375 23.0-23.9 0.60 28.0-28.9 0.85
19.0-19.9 0.40 24.0-24.9 0.65 29.0-29.9 0.90
4) SHF will bill AGCo on the last day of each month for all drying,
receiving, and shipping charges incurred that month. AGCo will reconcile the
bill and pay within 20 days.
5) SHF's receiving hours will coincide with AGCo's 102 facility harvest
receiving hours until facility is filled. Otherwise, SHF's receiving/shipping
hours will be 7AM to 3PM, Monday through Friday, excepting holidays.
6) 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 for drying purposes. SHF will not dump any grain
without an AGCo grade. SHF will provide AGCo with a composite sample of dried
corn daily. This sample will be taken at the end of conveyance (where the grain
enters the bin).
7) SHF is responsible for maintaining quality of stored grain. SHF is
liable for shrink on any corn less than 13.0% moisture. SHF will retain a probed
sample of grain from every truck shipped from their facility for AGCo. Wheat and
corn 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.
8) AGCo may inspect their grain stocks at any time during the storage
period. AGCo will absorb 1 percent loss or gain on grain stored. 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.
9) In the event that SHF sells the facility 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.
Please sign below for confirmation of the agreement. Thank you.
Sincerely,
/s/ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ Grain Co. Inc.
/s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇▇▇
S.H.F. Acquisition Corp.