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• 1 • <br /> guaranteed hereby, to allow Blaska to operate profitably during the <br /> term of this agreement. However, the parties are mindful of the <br /> uncertainties involved in the business of selling corn silage and <br /> intend that this agreement ensure that Blaska receive from each <br /> corn pack, from silage sales and from the aforedescribed payments <br /> from Stokely, an amount sufficient to pay Blaska's annual capital <br /> and operating budget for that corn pack up to a maximum sum of <br /> $82,500. <br /> Accordingly, Blaska shall supply to Stokely by May 1 of <br /> each year of this agreement beginning May 1, 1991, an accounting <br /> of silage sales which occurred between the first day of the <br /> previous year's corn pack and the 30th day of April following <br /> disclosing silage quantities sold during such period and gross <br /> income received by Blaska from such sales. Blaska shall also <br /> disclose to Stokely at such time its capital and operating budgets <br /> for such previous year's pack. If the total amount received by <br /> Blaska from gross income from silage sales for such period and from <br /> contract payments received from Stokely for such period is less <br /> than the total of Blaska's capital and operating budgets for such <br /> period, Stokely shall pay to Blaska the short-fall up to a maximum <br /> payment of $30, 000 for any corn pack. For purposes of this <br /> agreement, Blaska's operating budget for any reporting period shall <br /> be fixed at not more than $26,000 and its capital budget for any <br /> reporting period shall be fixed as the amount of its annual loan <br /> repayment to the Bank of Sun Prairie; which repayment shall be <br /> based upon a five year amortization of the loan guaranteed by <br /> Stokely. Any such payment shall be paid by Stokely on or before <br /> May 30 following the receipt of the required information from <br /> Blaska. <br /> If any such payment is required of Stokely due to <br /> Blaska's inability to sell some or all of the silage received <br /> during the prior year's pack, such payment shall be in the form of <br /> an interest bearing loan which shall be evidenced by a Promissory <br /> Note. In addition, Stokely shall receive from Blaska a security <br /> interest in the silage not sold and in the proceeds of its sale <br /> which will secure the repayment to Stokely of the amount evidenced <br /> by the Promissory Note. Repayment of the Promissory Note shall be <br /> made by Blaska with interest calculated at 12% per annum from sales <br /> of silage which take place after the signing of the Promissory <br /> Note. <br /> 4 <br />