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EXHIBIT 10.3
U.S. PREMIUM BEEF, LTD.
UNIFORM DELIVERY
AND MARKETING AGREEMENT
ODD SLOTS
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Exhibit 10.3
U.S. PREMIUM BEEF, LTD. ODD 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.
"ODD 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. 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. 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 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
shall attempt to limit odd slot delivery
agreements to allow all cattle
committed to delivery to be delivered.
However, if there are more cattle
committed than available slots the
Cooperative will accept slot commitments on a
first-come, first-served basis or utilize a
selection method described in
Paragraph 2. The Cooperative and
Producer
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U.S. PREMIUM BEEF, LTD. ODD SLOTS DELIVERY
AGREEMENT
FOR PROCESSING AT NATIONAL BEEF
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 Cooperative will attempt to accommodate
the
Producer's preference for delivery as
indicated in Paragraph 1. However, for
delivery slots that are overfilled, the
Cooperative intends to use a selection
procedure that may include closing certain
delivery slots or incentives to fill
underfilled delivery. If the Producer
selects an overfilled slot, the Producer
may select an underfilled slot or
participate in a selection procedure with
other Producers to determine how the odd
slots will be filled. A uniform
delivery schedule shall be prepared by the
Cooperative and given to the Producer
with the actual delivery period(s). 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.
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