2017 NIS Purchase Offer & Supply Contract.
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- Virginia Walker
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1 Date: 28 th February NIS Purchase Offer & Supply Contract. Nutworks was proud to recently celebrate our 20 th anniversary. We would like to put forward the following offer for deliveries of the Australian 2017 macadamia crop. We believe that this offer is competitive by Industry Standards. Nutworks has continued with our strategy to diversify operations into value add products to protect against the price volatilities in the Macadamia Industry. We continue to experience great inroads on this front and are committed to continuing down this path by focusing on increasing domestic and export market penetration with new and unique quality products. Last financial year over 65% of our total sales were made into the value added market. Last year we witnessed record prices for NIS, 2017 will be no exception. Our diversification has allowed Nutworks to post another profitable result for the last financial year even in the face of record high NIS prices. TERMS OF THE OFFER 1. $5.40 PER KG NIS (33% 10% moisture content). (With Volume bonus $0.20 = $5.60 per kg) 1.1 In addition this season we are offering a volume bonus based on anticipated tonnage from our region; this region being north of Brisbane and south of Boreen Point. 1.2 This volume bonus is a payment of $0.20, being the reward for all growers for total tonnage for this area exceeding 500 tonne. Our receivals from this area in the past have well exceeded this volume. The Volume Bonus will be paid in the month of December when final volumes can be determined. With Volume Bonus effective rate for this region will be $5.60 per 33% SKR and 10% moisture content. 1.3 The volume bonus will be paid to ALL growers who contribute to the areas total deliveries. As such, the grower who delivers one tonne for the year will be paid the bonus the same as the grower who delivered 300 tonne. 1.4 Also, a quality bonus of up to $0.30 per kg as per the attached Schedule A (Payment Option 1 and 2). 1.5 No penalties for unsound kernel. 1.6 No penalties for Commercial grade kernel, this kernel will be counted as sound kernel as paid as such. 1.7 Nutworks will pay freight subsidies.
2 1.8 NIS is to be greater than 17mm diameter, measured as the maximum diameter of the equatorial section, or the longest diameter. 1.9 Nutworks reserves the right to refuse delivery of NIS with unsound kernel over 5%. 2 PAYMENT TERMS. Nutworks proposes two payment term options; Option 1 10 Equal Monthly Payments. Payment will be made in ten equal monthly payments, the first of which occurring 30 days from the end of month of delivery. Payments under this option will be at the rates indicated above under Our Offer. Option 2 Early Payment Option. i) $2.00 paid within 2 to 3 weeks from date of delivery. 3 weeks has been allocated as independent testing (for growers that may request this) may take longer than 2 weeks from delivery date. ii) Remainder paid in 6 equal monthly payments, the first payment commencing 30 days from the end of month of delivery. iii) For this option the base rate offered is reduced by $0.07 per 10% moisture. Please see attached Payment Option 2. 3 INDUSTRY LEVY Nutworks will calculate the levy payable, deduct this from the grower s payment and remit on behalf of the grower. 4 NUT QUALITY TESTING. 4.1 A representative sample will be taken on delivery in Yandina half of which will be tested by our accredited staff for payment purposes, the other half to be retained at Nutworks. The sample (or samples) will be tested by Nutworks staff accredited by the Australian Macadamia Society in kernel assessment. 4.2 For consignments over 5 tonne the grower can elect to have the sample / samples tested by Cropwatch Independent Laboratories at Nutworks expense. 4.3 Retests of the retained sample can be requested up to 6 weeks after delivery, when this occurs an average of both test results will be used for payment purposes. 5 GROWER DISCONT IN NUTWORKS RETAIL SHOP. 5.1 Nutworks is proud of our value added products. We also believe that our growers should be able to enjoy the fruits of their labour and be able to gift macadamia products to their friends and family at a reasonable price. As such Nutworks growers enjoy a 50% discount of Nutworks branded products in our retail shop.
3 Detailed terms and conditions will be provided by our Retail Manager when the growers discount card is issued including purchase limits etc. 5.2 A grower discount card will be issued on receipt of this signed Supply Contract, discounts cannot be offered unless this card is presented.
4 6 GROWER DETAILS / OFFER ACCEPTANCE. To accept this offer please complete the below details and sign below. 6.1 Grower / Sellers Name: 6.2 Address: 6.3 ABN: Phone: 6.5 Tonnage 10% moisture 6.6 Bank Account Name: 6.7 BSB: Account: 7 AUTHORISATION By signing this offer the seller commits to deliver the above tonnage to Nutworks in 2017 and that they are the owner of the NIS offered for sale. BETWEEN: SELLER / GROWER BUYER Seller / Grower Buyer Nutworks Signature Signature Wayne Gersbach Agreement made this day of 2017 Agreement made this day of 2017 date month date month Please tick; PAYMENT OPTION 1 OR PAYMENT OPTION 2 (10 EQUAL MONTHLY PAYMENTS) (EARLY PAYMENT OPTION) 2 Number 8 OPTIONAL DETAILS If you would like Nutworks to provide your information to participate in Industry Awards please also advise below: 7.1 Orchard size: Hectares 7.2 Number of actively productive trees: Trees
5 SCHEDULE A: Payment Option 1 10 Equal Monthly Payments SOUND KERNEL RECOVERY BASE RATE With Volume Bonus $0.20 UNSOUND % QUALITY BONUS 44% $ 7.20 $ % $ % $ 7.04 $ % $ % $ 6.87 $ % $ % $ 6.71 $ % $ % $ 6.55 $ % $ % $ 6.38 $ % $ % $ 6.22 $ % $ % $ 6.05 $ % $ % $ 5.89 $ % $ % $ 5.73 $ % $ % $ 5.56 $ % $ % $ 5.40 $ % $ % $ 5.24 $ % $ % $ 5.07 $ % $ % $ 4.91 $ % $ % $ 4.75 $ % $ % $ 4.58 $ % $ % $ 4.42 $ % $ % $ 4.25 $ % $ % $ 4.09 $ % $ % $ 3.93 $ % $ 3.76 $ % $ 3.60 $ % $ 3.44 $ % $ 3.27 $ 3.47
6 Payment Option 2 Early Payment Option (Base rate reduced by $0.07) SOUND KERNEL RECOVERY BASE RATE With Volume Bonus $0.20 UNSOUND % QUALITY BONUS 44% $ 7.11 $ % $ % $ 6.95 $ % $ % $ 6.78 $ % $ % $ 6.62 $ % $ % $ 6.46 $ % $ % $ 6.30 $ % $ % $ 6.14 $ % $ % $ 5.98 $ % $ % $ 5.81 $ % $ % $ 5.65 $ % $ % $ 5.49 $ % $ % $ 5.33 $ % $ % $ 5.17 $ % $ % $ 5.01 $ % $ % $ 4.85 $ % $ % $ 4.68 $ % $ % $ 4.52 $ % $ % $ 4.36 $ % $ % $ 4.20 $ % $ % $ 4.04 $ % $ % $ 3.88 $ % $ 3.71 $ % $ 3.55 $ % $ 3.39 $ % $ 3.23 $ 3.43
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Date: 22 nd February 2018 2018 NIS Purchase Offer & Supply Contract. 2017 was a significant year for Nutworks and we would very much like to say thank you for those growers that supported us throughout
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