Merchants Plus Grain Marketing  11/28/17 4:57:25 PM

FC STONE OFFER UPDATES DAILY  FOLLOW YOUR MRKETING ONLINE
TWO OPTIONS FOR CORN BUSHELS:
1) ENHANCED AVERAGE + -- This strategy is a rules-based algorithm, designed to outperform while staying closer to a daily average selling pace.
2) AGRESSIVE -- This strategy is discretionary, managed by a team of professionals that opportunistically trade around market conditions with a goal of generating the best possible price for producers.
Both strategies prices will be available on website daily along with regular market updates and charts showing your potential range of price outcomes, the rate at which the program is being price, and how it is being priced.

 
Merchants Plus is a grain marketing option.  In the program, producers sign up bushels to be marketed by FC Stone.  FC Stone uses a variety of marketing tools, timing and marketing over a extended time frame to market your bushels.  St. Francis Equity is offering this program as an option for some of your bushels.  Now is the time to sign up bushels of wheat for 2018 harvest.  Contact the St. Francis Equity for additional information. 

Contract:
PURCHASE PRICE CONFIRMATION
 

Seller                                Buyer

                                St. Francis Mercantile Equity Exchange

                                123 N. River St.

                                St. Francis, KS 67756

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Contact:                             Date: 09/12/2017

Contract No: 1801

Your Number:

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Commodity: Wheat                    Grade:   [#1]

Quantity: XXXX Bushels                   

Price: Merchants Plus Pricing           

FOB: St. Francis KS- truck                Delivery Point: St. Francis KS

Grades: Destination                        Rules to Govern: NGFA

Weights: Destination

Shipment Period: 06/15/2018-07/31/2018

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By signing where indicated, I hereby acknowledge my agreement with the stated terms and conditions. If manually

signing this agreement, please sign and date the original and attached copy of this contract. The original must be

returned to St. Francis Mercantile Equity Exchange at the above referenced address, and a copy should be retained for your

records.

 

Your failure to execute and return this contract or to notify St. Francis Mercantile Equity Exchange of its disagreement with

any term of this contract within two (2) business days following the date of this contract will constitute your acceptance of

all terms set forth herein.

 

*** See page 2 and the Merchants Plus Pricing Addendum for complete terms ***

 

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Special Instructions/remarks: The Merchants Plus Pricing Addendum is incorporated herein by reference.

 

Seller:                        Buyer: St. Francis Mercantile Equity Exchange

Accepted___________________               

By: _________________                    Signed: _____________________   

Date: ______________                    Date: ___________________






 

The terms of this Contract include the Purchase Terms listed below, which form part of this Contract and are legally binding upon the parties.

The statements below are understood to be an accurate statement of the terms and conditions of the agreement between the parties hereto. Failure to

advise Buyer immediately of any discrepancies, objections to or disagreements with such terms and conditions shall constitute acceptance of this

Contract.

 

1. It is agreed that the terms herein set forth and the trading rules set forth hereto (to the extent that they are not in conflict with the terms stated herein)

constitute the entire agreement between the parties, and there shall be no modifications or alterations except with the consent of both parties in writing. Notwithstanding the foregoing and except as otherwise expressly provided herein, each transaction shall be subject to the Trade Rules of the National

Grain and Feed Association (“NGFA”) applicable on the date this contract is signed.  (NGFA Trade Rules and Arbitration Rules are available upon

request)  The parties to this contract agree that, the sole remedy for resolution of any and all disagreements or disputes arising under any transaction  

shall be through arbitration proceedings before the NGFA under NGFA arbitration rules.  The decision and award determined through such arbitration

shall be final and binding upon the parties.  Judgment upon the arbitration award may be entered and enforced in any court having jurisdiction thereof.   

Upon the occurrence of an event of default, the non-defaulting party shall have the right to proceed with an action in a court of competent jurisdiction,

and upon the filing of such proceeding the foregoing agreement to arbitrate shall be of no force and effect

2. Buyer shall make payment under the terms specified herein upon receipt of each shipment and supporting documentation hereunder.

3. If shipping instructions are not set forth herein, Seller will make delivery in a timely manner in accordance with Buyer's instructions.

4. If Seller (i) fails to comply with shipping instructions within the time specified, (ii) fails to supply any shipments therefore, (iii) refuses to execute any

shipments as required hereunder, (iv) is otherwise in breach of Contract, Buyer may treat such default as a total breach of this Contract, or a partial

breach of this Contract (i.e., a breach only as to the individual shipment or installment).

5. If the financial condition of the Seller becomes impaired or unsatisfactory in the Buyer's judgment, or if the Seller fails to tender any shipments

hereunder when due, the Buyer may require Seller to pay cash Mark to Market value on any remaining deliveries under this Contract. Buyer may also

demand, from time to time, and Seller must, within forty-eight (48) hours after receipt of such demand, deliver to Buyer a margin deposit not to exceed the

difference between the contract price of the undelivered goods subject to this Contract and the market price of such goods on the day upon which such

demand is sent. Buyer, at its sole discretion, may treat failure to remit such margin deposit within the time specified as a partial or total breach of this

contract and all other open contracts between Buyer and Seller. Buyer may also pursue, alternatively or in conjunction with any of the above, any of

Buyer's other legal and equitable remedies.

6. Buyer shall not be liable in any respect for failure or delay in the fulfillment or performance of this Contract, including but not limited to obligation to take

deliveries, if performance is hindered or prevented, directly or indirectly, by war, riots, embargo or national emergency; shortage or inability to obtain

transportation or transfer facilities; plant breakdown, inability to secure fuel, power, material or labor; fire, flood, windstorm, or other acts of God; strikes,

lockouts or other labor disturbances (whether among employees of Buyer or others); orders or acts of any government or governmental agency or

authority; or any other cause of like or different kind beyond Buyer's reasonable control. In the event Buyer is unable to take the total requirement of its

suppliers Buyer may allocate its available demand among its suppliers in a manner determined by Buyer to be fair and equitable.

7. This agreement is based on current freight rates and any freight rates and any increases in such freight rates shall be for Buyer's account

regardless of price basis. All demurrage or detention charges that are the direct result of Seller shall be for Seller's account.

8. Seller WARRANTS that the goods sold hereunder conform to the description on the face of this Contract, are free from defects, are free from liens

and encumbrances, are suited for their intended use and are merchantable.

9. Buyer may inspect and test all goods delivered, and Seller agrees to provide, without charge, reasonable assistance for such inspections and tests,

whether before or after payment is made. If any goods are defective or do not conform to the terms of this Contract or the particular delivery, Buyer

may, without limiting or restricting its other remedies, accept the goods at an equitably reduced price, cancel such delivery, or reject the defective goods

and place them in storage at Seller's expense or return them to Seller, at Seller's expense, and require delivery of replacements, which must be delivered

in the manner specified for the original delivery, unless otherwise directed by Buyer.

10. BUYER SHALL IN NO EVENT BE LIABLE TO SELLER FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHETHER THE CLAIM IS BASED

ON CONTRACT, TORT, STRICT LIABILITY OR OTHER THEORY. BUYER'S LIABILITY FOR DAMAGES SHALL IN NO EVENT EXCEED THE PURCHASE PRICE

OF THE PARTICULAR SHIPMENT WITH RESPECT TO WHICH A CLAIM IS MADE, WHETHER THE CLAIM IS BASED ON CONTRACT, TORT, STRICT LIABILITY

OR OTHER THEORY.

11. Seller agrees to indemnify and defend the Buyer (and its affiliates and their respective officers, directors, employees, representatives and agents)

from all claims, liabilities, fines, interest, costs, expenses, and damages incurred by the Buyer, for any damage, injury death, loss, or destruction arising

out of or related to the conduct, negligence, willful misconduct, misrepresentation, breach of warranty, or other breach of this Contract by the Seller.

12. Buyer's Weights are to govern settlement.

13. Risk of loss shall pass to Buyer upon the delivery of goods to common or contract carrier

14. In the event of any breach of this Contract by Seller, it is agreed that the damages of Buyer shall include the cost of replacement.

15. Seller represents and warrants that it is solvent as of the date of this Contract. Any delivery shall also constitute a representation and warranty of

solvency by the Seller on the delivery date.

16. No terms or conditions in the Seller's quote, acknowledgement or other document issued by the Seller which conflict with the terms and conditions

hereof or which increase the Buyer's obligations or reduce or limit the Seller's obligations or liability hereunder shall be binding on Buyer unless accepted

in writing by the Buyer. None of the terms and conditions hereof may be amended or waived except as mutually agreed to between the parties in

writing.

17. Buyer expressly reserves the right to cause the liquidation or cancellation of this contract because of (a) insolvency or financial condition of seller;

(b) the commencement of a case or appointment of or a taking of possession by trustee or custodian under 11 U.S.C.§§ Sections 101 et seq., or

successor legislation or any and all other defaults of the terms and conditions specified herein either directly or by reference.

18. Without limiting the Buyer's pursuit of any and all other rights and remedies available to it, it is expressly agreed that this Contract is subject to the

Buyer's right to set off its obligations hereunder against any debts, claims or obligations owed by the Seller under or in connection with this Contract, or

any other contracts between the parties, as provided in 11 U.S.C.§§ Section 362(b) (6) or successor legislation.

19. The rights and obligations of Seller under this contract are not assignable without the prior written consent of Buyer. If any part of this Contract is

found to be void or unenforceable, the provisions shall be severable and those provisions which are lawful shall remain in full force and effect.

20. This Contract shall be governed by the laws of the State of Iowa.





 

Merchants Plus Pricing Addendum

 

Transaction Date:                09/12/2017

Delivery Point:                St. Francis, KS, St. Francis Equity

Customer Name (“Seller”):       

Contract Number:            1801

Merchants Plus Bushels:           

Service Fee:                $.10/bushel   Total $

Basis:                Locked by seller any time prior to contract end or basis at end of contract

Reference Futures Contract:        July 2018

Pricing Period:                October 2017 thru May 2018

 

The Merchants Plus Pricing Addendum (“Addendum”) forms a part of the Purchase Contract, Contract Number _______, between St. Francis Mercantile Equity Exchange  (“St. Francis Equity”) and Seller and is hereby incorporated therein by this reference.  

 

THIS IS A PHYSICAL PURCHASE CONTRACT AND ENTERING INTO THIS TRANSACTION DOES NOT RESULT IN SELLER OPENING A FUTURES, OPTIONS OR OTC ACCOUNT OR HAVING FUTURES, OPTIONS OR OTC POSITIONS.  FCSTONE WILL HOLD ALL FUTURES, OPTIONS OR OTC POSITIONS IN FCSTONE’S NAME.  FUTURES, OPTIONS OR OTC POSITIONS ARE EMPLOYED BY FCSTONE AS A PRICING MECHANISM RELATED TO THIS CONTRACT.  THIS CONTRACT IS NOT A FUTURES, OPTIONS OR OTC CONTRACT OR A COMMODITY POOLING AGREEMENT.

 
  1. Pricing. The Price paid by St. Francis Mercantile Equity Exchange  for the Merchants Plus Bushels will be equal to the Merchants Plus Hedge Price, adjusted for the [Basis and the] Service Fee.

    1. Merchants Plus Hedge Price. The Merchants Plus Hedge Price shall be the final futures price achieved by FCSTONE through its hedging during the Pricing Period for the Reference Futures Contract.  All grain to be priced pursuant to a Merchants Plus Pricing Contract shall be priced using the sole and absolute discretion of FCSTONE and FCSTONE’s traders.

    2. Basis. The Basis is to be determined prior to delivery or default rate of basis at delivery.

    3. Service Fee. The Service Fee is $.10 per bushel.

  2. Waiver of Claims. Seller waives any and all present and future claims it may have against St. Francis Mercantile Equity Exchange and FCSTONE arising out of or relating to the hedging or pricing of Merchants Plus Bushels.  

  3. Delivery. Seller shall physically deliver all grain sold hereunder during the Shipment Period and to the Delivery Point specified in the Purchase Contract.

  4. Conflict. In the event that there is a conflict between this Addendum and the Purchase Contract this Addendum shall govern and control.

  5. Abnormal Market. If on the last day of the Pricing Period in the reasonable opinion of FCSTONE there is no market in the Reference Futures Contract or if the Reference Futures Contract is either limit up or limit down at closing then the Pricing Period shall be extended until such time as an Abnormal Market no longer exists.

  6. One Agreement.  St. Francis Mercantile Equity Exchange and Seller agree that the Purchase Contract and this Addendum form one agreement and that neither may operate as a stand-alone agreement.


 
 
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