This Contract is made between Botanical Extracts EPZ Ltd. of P.O. Box 401-00204, Twiga Crescent,
Athi River, Kenya (hereafter referred to as “the Company”) or its assignee
and  {{ strtoupper($cl->first_name)}}   {{strtoupper($cl->last_name)}}   ("The Grower") Of P.O. Box    {{$cl->address ?? 'N/A'}}    P.I.N./I.D. No -   {{$cl->id_number}}.  Who may collectively be termed "the parties".
In this Contract "Flowers" means Flowers from the Pyrethrum plant (Chrysanthemum cinerariaefolium) and the "Factory" means the Company’s processing facility in Athi River.

It is hereby agreed that;
1. The Grower agrees to be registered as a Pyrethrum Flower supplier to the Company for the duration of this contract and shall supply all his/her Pyrethrum Flower produce to the Company during this time.
2. The Grower agrees to plant on behalf of the Company at his/her own cost acres (  {{$acres}}   hectares) of Pyrethrum Plants.
3. The Company shall:
3.1 Appoint a representative to interact with the Grower on all aspects of this contract.
3.2 Provide to the Grower at the start of the contract, sufficient Pyrethrum seeds or seedlings to plant the agreed area, if requested by the Grower and such seed or seedlings are reasonably available to the Company.
3.3 Provide to the Grower advice on agronomic practices in the form of:

• A Grower’s manual outlining commonly used Pyrethrum production practices.
• Periodic farm visits, as maybe required during development of the Grower’s production.

4. The Grower shall:
4.1. Manage, and irrespective of the agronomic advice provided by the Company, be solely responsible for his/her entire Pyrethrum production operation, including allocation of suitable land; land preparation; planting; crop husbandry; harvest and delivery of Flowers, entirely at his/her own cost.
4.2. Ensure that he/she has sufficient funds, equipment and management expertise to fulfill his/her obligations under this contract.
4.3. Not use pesticides or other chemicals on the crop without prior approval from the Company.
4.4. Produce/pack Flowers in compliance with the quality specifications stated in Annex 1.

• Harvest the Flowers at the correct stage of maturity and dry them to the correct moisture content.
• Remove all stalks, extraneous matter, etc.
• Pack the Flowers in clean and dry bags meeting specified requirements.
• Label the bags with the Growers details in order to ensure traceability.

4.5. Safely store and deliver the packed Pyrethrum Flowers within 30 days of harvesting:

• To a “collection center” within the growing area- to be agreed with the Company.
• Ensure that the Flowers are stored in cool and dry conditions at this center.
• The costs of delivery and storage of Flowers at the area collection centre will be met by the Grower.

4.6. Aggregate his/her Flowers to a minimum batch size, to be agreed with the Company representative.
4.7. Provide access and assistance to the Company’s appointed Representative or other personnel to inspect the Grower’s Pyrethrum production and post-harvest handling facilities, as maybe required.
5. The Company shall purchase Flowers produced by the Grower, subject to such Flowers meeting the specifications stated in Annex1 of this Contract, according to the following procedure:
5.1. The Company shall:

• Arrange to inspect, weigh and collect stored Flowers meeting visual inspection criteria, from the agreed “area collection centre” on a regular schedule, also to be agreed with the Growers.
• Provide to the Grower or Grower Group a record of the Flowers collected, in the form of a Produce Receipt Note (PRN) for each Aggregated Consignment.
• Arrange transport of the Flowers to the Factory at its own cost.

5.2. On arrival at the Factory, the Company shall make a detailed assessment of the quality of the Flowers:

• Carry out a physical inspection of each aggregated consignment.
• Take a representative sample of the aggregated consignment and analyze it for Pyrethrin content and other quality specifications in the Company’s Quality Control (QC) laboratory.
• Retain a retention sample of the consignment for a period of 30 days after delivery, in case there is a need to confirm the Pyrethrin content at an independent laboratory.
• Set aside and store separately any consignment that is deemed not to meet the specified quality requirements.

5.3. The Grower shall have the right to:

• Be present during the weighing at the area collection centre and the inspection of Flowers at the Factory.
• To query the quality assessment made by the Company for a period of ten days after the Company’s weight/quality report is issued.
• Retain a retention sample of the consignment for a period of 30 days after delivery, in case there is a need to confirm the Pyrethrin content at an independent laboratory.
• Set aside and store separately any consignment that is deemed not to meet the specified quality requirements.

5.4. In the event that the Grower queries the Companies Weight/Quality report within the agreed period: 5.4.1. For issues related to Pyrethrin content:

• The parties will first try to resolve the difference through a review of the Companies analysis procedures and records.
• Failing such a resolution, the retention sample will be submitted to a mutually agreeable independent laboratory for confirmation of Pyrethrin content – not necessarily within Kenya.
• The findings of the independent laboratory will be binding on the parties.
• The cost of any such confirmation by an independent laboratory will be borne by the party whose assessment has the greatest deviation from the independent laboratory’s findings.

5.4.2. For issues relating to other quality parameters, the query will be resolved by joint inspection of the consignment.
5.5. If the Grower does not query the quality report in writing within ten days of the Company’s Weight/Quality report being issued, the report will be deemed to have been accepted by the Grower.
6. The Company shall pay the Grower according to the Pyrethrin content of the Flowers delivered and accepted at the Factory:
6.1. The benchmark price will be set at Kenya shillings two hundred and ninety per kilo, for Flowers with a Pyrethrin content of up to 1.6% (Analyzed by UV official method).
6.2. The price to be paid will be prorated upwards or downwards by KSh.15 per 0.1% that the analyzed Pyrethrin content differs from 1.6%.
6.3. A First payment of Ksh.290 per kilo will be paid after checking of physical quality by the BE field officer at weighing and confirmation at the collection centre within seven working days upon delivery.
6.4. The final price shall be determined according to the Pyrethrin assay within five working days of delivery to the Factory. A second and final payment will be made within seven working days upon assay confirmation at the Factory.
6.5. Deductions will be made to the Grower’s final payment for planting material (seeds/ seedlings/splits) provided and any other input provided at an agreed rate as stated on the invoice issued to the Grower or Grower group.
6.6. Recovery of the cost of planting material provided shall be spread over the first six Flower deliveries.
6.7. Payments to the Grower shall be made by cheque or by MPesa services. No cash payments will be made.
6.8. A monthly statement will be provided to the Grower on the fifteenth of every month stating the weight of the consignment, the Pyrethrin and moisture content, any deviations from the quality specification, the calculated value of the consignment, any deductions for inputs provided by the Company and the net amount to be paid.
7. If the quality of Pyrethrum Flowers delivered to the Factory does not meet the specifications outlined in Annex 1, the Company will have the right to reject the Flowers or negotiate a lower price. In the event that a price acceptable to both parties cannot be agreed, the Grower will remove the consignment from the Company’s premises at his/her own cost, within fifteen days.
8. Free Transfer of Flowers:
8.1. Ownership of the Flowers will transfer to the Company once the Flowers have been inspected at the Factory and the quality found to be in compliance with the quality requirements.
8.2. By delivering the Flowers to the Area Collection Center, the Grower warrants that he/she is the rightful owner of the Flowers, is legally entitled to sell the Flowers to the Company and is delivering the Flowers to the Company free of any encumbrances or liabilities and in full compliance with current Kenyan law.

8.3. Any disputes regarding ownership of the Flowers and subsequent claims from other parties will be the sole responsibility of the Grower to resolve.
9. This Contract will have a duration of three years from the date of signing. It may be extended on terms and for a period to be agreed by the parties and confirmed in writing.
10. This Contract may be terminated early at BE’s discretion on the following grounds:
10.1. If after the current planting season, the Grower fails to plant the agreed acreage of the crop.
10.2. If the Grower continuously delivers Flowers that do not meet the specified quality requirements.
10.3. The Grower sells any of his/her Flowers and or Pyrethrum plants to another party.
10.4. The Grower registers with another Pyrethrum processor.
10.5. The Company fails to purchase the Grower’s production or pay within the specified period.
10.6. Force Majeure: It may be terminated immediately by either party giving the other notice in writing should there be any event or occurrence that impacts the ability of the party to fulfill its obligations and which is beyond the reasonable control of the party: such as but not limited to war, civil strife, destruction of goods or facilities by fire, natural calamities, the withdrawal of the Company’s processing license by the relevant Authorities, failure of the relevant government authority to maintain the required documentation for Kenyan pyrethrum to be exported to regulated markets, or any other such reasonable cause beyond the control of the parties.
10.7. The insolvency of either party.
11. Should the Grower fail to plant the agreed surface area within six months of signing this contract,the Company shall have the right to reduce the contracted area for the remaining contract period to the area actually planted at that time.
12. In the event that the World Price for Pyrethrum Extract (as determined by the relevant government authority) should decline by more than 10%, for a period greater than three months, the Company will have the right to negotiate a temporary reduction to the price paid for the Flowers until the World Pyrethrum Extract price recovers:

• Any reduction in the Flower price will not be more than the reduction in world market prices on a percentage basis.
• This clause will only be applicable after the first year of the contract, based on the signing date of the contract.
• Should the parties not be able to come to an agreeable compromise on a price reduction, the contract will automatically be terminated with a three months’ notice period.

13. Governing Law and Dispute Resolution:
13.1. This Contract will be governed by the laws of Kenya. Should any dispute occur, the parties will first attempt to resolve it amicably; if necessary, with the input of the relevant government authority.
13.2. Failing an amicable resolution, any outstanding dispute will be resolved through arbitration under Kenyan arbitration law. The place of arbitration will be Nairobi, Kenya.
14. Neither the Company nor the Grower shall be liable for loss of earnings or any other loss or damage incurred by the other party resulting from any activities covered by this contract.
15. Neither party shall become or be authorized to act as the agent for the other, unless authorized to do so in writing.

Grower’s Name:  {{$cl->first_name}}  {{$cl->last_name}}   Sign:     Date:   2025-03-17  
I certify that the contents of the document were first read out by me and interpreted to the Grower and
he/she fully understood the contents before appending his/her signature hereto.
Signed for the Company:   {{$company}}  
Name:   {{$agent}}    Date:   2025-03-17  
Witnessed By:
Name:   {{$contact ?? 'N/A'}}    Date:   2025-03-17  
Contract No:   {{$doc}}  

 

The Pyrethrum Flowers must comply with the quality standards stated in BE’s Quality Standards SOP No. SOP/QCD/ 091, which are summarized below.
1. The Flowers must be clean, composed of only whole Flowers and Flower components (predominantly achenes) with no extraneous matter.
2. The Flowers must be:

• Dry with a characteristic aroma,
• Free from rancid odor, mold or mustiness,
• Free from foreign matter (twigs, weeds),
• Free from pests and insect infestation, mites, insect fragments, excrement or other animal contamination,
• Free from adulteration (chaff, sand, gravel, paper, cloth, wood, plastic, etc.)

3. The Pyrethrin content of the Flowers must be at least 1.1% (Measured by UV and if necessary, confirmed by HPLC).
4. The Flowers delivered to BE must have a moisture content below 10.0%

• Flowers accepted by BE at a moisture content between 10.0% and 12.0% will be dried by the Company at the Grower’s or Grower group’s expense and the weight adjusted pro rata to 10.0% moisture content.
• Flowers with a moisture content above 12.0% will be rejected.

5. The Flowers must be packed in clean and dry sisal bags dedicated to Pyrethrum Flowers, with not more than 50 kilos net in each bag.

• Initially the Company will accept packaging in clean polypropylene bags; however, the intention is after one growing season to move to sisal bags unless agreed otherwise by the Company’s representative.
• The use of any bags that have been used for any other material is strictly not permitted unless otherwise agreed by the Company’s representative.

6. To ensure traceability of the Flowers, all bags must be well labeled with the Grower’s name, farm location, net weight, and where applicable the Produce Receipt Note number.
7. The Flowers must be delivered to the area collection centre within thirty days from the date of picking.