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EXHIBIT 10.2
U.S. PREMIUM BEEF, LTD.
UNIFORM DELIVERY
AND MARKETING AGREEMENT
EVEN SLOTS
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Exhibit 10.2
U.S. PREMIUM BEEF, LTD. EVEN SLOTS DELIVERY
AGREEMENT
FOR PROCESSING AT NATIONAL BEEF
MEMBER NO.______
U.S. PREMIUM BEEF, LTD.
P.O. BOX 20103
KANSAS CITY, MO 64195
PHONE: 866-877-2525 FAX: 816-713-8810
UNIFORM DELIVERY AND MARKETING AGREEMENT
FOR CATTLE DELIVERY TO USPB
FOR PROCESSING AT NATIONAL BEEF PACKING COMPANY, LLC.
"EVEN SLOTS"
THIS AGREEMENT, effective as of December 1, 1997 is between
U.S. Premium Beef, Ltd. (a Kansas
cooperative association, referred to as the
"Cooperative"), and the undersigned
contracting producer (referred to as
"Producer") who is a member of the
Cooperative. Delivery of cattle to U.S.
Premium Beef, Ltd. is not due until
delivery schedules are provided to the
Producer by the Cooperative. The
Cooperative desires to protect its interests by
ensuring that it will have access to an
adequate supply of cattle for its cattle
processing project; and the Producer
desires to supply cattle to the
Cooperative. The Cooperative and the
Producer agree that the Producer must own,
control, or associate with others so that
beneficial changes can be made in
cattle breeding and production to meet
processing and beef consumer preference
demands. Subject to the terms, conditions,
and obligations of the Cooperative
and Producer in this Agreement, similar
obligations of other cattle producers
contracting with the Cooperative, and in
accordance with the Articles of
Incorporation and Bylaws of the
Cooperative, the Producer and the Cooperative
agree as follows:
1. COMMITMENT TO SUPPLY CATTLE TO THE COOPERATIVE. The
Producer agrees to deliver and supply to
the Cooperative and the Cooperative
agrees to buy and receive one head of
cattle from the Producer for each share of
common stock owned by the Producer (subject
to assignment as provided below and
as provided in Paragraph 15) each year
during the term of this Agreement except
that the Board of Directors may reduce this
amount by giving advance written
notice if the Board determines in its sole
discretion that the actual processing
capacity will be a lesser amount. The Board
of Directors may, by resolution,
allow a small deviation from the above
delivery requirement to allow for
production variances. The Board of
Directors may approve the assignment of
delivery rights under this Agreement to
another member or associate member of
the Cooperative, however, the Producer
remains liable for any underdeliveries.
The Cooperative and Producer agree that
this Uniform Delivery and Marketing
Agreement is a cooperative marketing
agreement subject to Kansas Statutes,
Section 17-1616.
2. DELIVERY OF CATTLE. The cattle committed to the
Cooperative under paragraph 1 must be
delivered to the Cooperative on an equal
four week basis as determined by the
Cooperative. A uniform delivery schedule
shall be prepared by the Cooperative and
given to the Producer on a regular
basis. The Producer agrees to supply the
cattle in accordance with the delivery
schedule and agrees the risk of loss for
the cattle shall remain with the
Producer until the cattle are delivered to
the Cooperative at a location
designated by the Cooperative.
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U.S. PREMIUM BEEF, LTD. EVEN SLOTS DELIVERY
AGREEMENT
FOR PROCESSING AT NATIONAL BEEF
3. APPOINTMENT OF COOPERATIVE AS PURCHASING AGENT. The Producer
appoints and designates the Cooperative to
act as his or her sole agent in the
sale and marketing or utilization of cattle
committed to the Cooperative under
this Agreement and any extensions, renewals
or amendments of this Agreement.
If a Producer is unable to supply the required amount of cattle,
the
Producer must obtain the cattle from any
other source and deliver the cattle to
the Cooperative, just as if the cattle had
been produced by the Producer. If the
Producer does not deliver the cattle as
stated, the Producer agrees that the
Cooperative, at its option, may act as
Producer's agent for the purpose of
obtaining cattle in the name of the
Producer and ma