Each Supplier Shareholder is required to enter into a HSA.
The main purposes of this agreement are to provide CHL with an assured supply of honey in varieties, grades and quality to satisfy demands of its customers and to provide its Australian Supplier Shareholders with the security of a reliable buyer for their honey.
Under this agreement, the Company agrees to purchase and the Supplier Shareholder agrees to supply its annual quota provided such honey can be sold by the Company on the Australian domestic and/or export market, and such honey complies with quality standards established by law or by CHL.
Neither party will be in breach of its obligations under this agreement where it is prevented from buying or selling, or producing and supplying the honey (as applicable) through any cause beyond the parties reasonable control.
Prices to be paid by CHL for honey supplied in any year up to the annual quota shall be at prices determined from time to time by the Company taking into account the selling prices obtainable on the domestic and export market, and the proportions of various grades of honey expected to be sold into each market. These prices are subject to change without prior notice and CHL will inform a Supplier Shareholder in writing of any changes as and when they occur.
The Supplier Shareholder agrees not to purchase or otherwise acquire honey from any other person for supply to the Company. The total amount of honey required by the Company (‘Quota) shall be fixed by the Board and reviewed annually and any portions of annual Quota relinquished by or withdrawn from Supplier Shareholders may be reassigned at the discretion of directors. The Company may agree to purchase from a Supplier Shareholder any quantity of honey in excess of that Shareholders annual Quota at a price agreed prior to delivery.
The Supplier Shareholder is required to declare at the date of execution of