This Agricultural investment opportunity is provided by Agrostory Nigeria (Agrostory Integrated Services) and will bind all transactions concerning the investment.
1. PURPOSE AND SCOPE
The purpose of this Memorandum of Understanding is to set forth the terms and conditions, scope, and responsibilities of the parties associated with the agricultural investment service offered by Agro Story Integrated Services and subscribed to by the investors.
Founded in 2017, this young initiative “Our Company” was registered as Agrostory Integrated Services and certified with Corporate Affairs Commission under the companies and allied matters Act 1990 with RC Number 2707733 on 30th November 2018 as a business operating within the shores of the Federal Republic of Nigeria with general business objectives of:
Farming and Agribusiness investment opportunity provisions
Agro-allied consultancy and training services,
Food production and processing services
Import and Export of Agricultural produce
General farm solutions and contracts.
AGROSTORY INTEGRATED SERVICES SHALL UNDERTAKE THE FOLLOWING ACTIVITIES UNDER THIS TERMS AND CONDITIONS:
1. Source for suitable land for farming.
2. Provide bi-weekly progress report to invest on farm project and on the request of the investor arrange a guided visit to farm location.
3. Sell produce to off takers.
4. Pay back investor his/her initial capital and on ROI commensurable to the farm project.
INVESTOR SHALL UNDERTAKE THE FOLLOWING ACTIVITY UNDER THIS TERMS AND CONDITIONS:
1. Select desirable farm projects, read and understand its terms, investment duration, and ROI’S.
2. Find selected farm projects.
3. Provide payment instruction for payment of initial capital and ROI.
4. TERMS AND CONDITIONS
It is mutually understood and agreed by Agrostory Integrated Services and
a. Your Investment Fund still remains till the year/month you will pull out of the project or when the farming conditions of the host communities change. However, your startup capital will be paid into your provided bank account when the need arises.
b. The pending cost for irrigation increases during dry season but remains the same during rainy season depending on your preferred farm choice.
c. You can pair with someone to invest half, double, triple or more the total investment amount and you also have a choice to do it alone.
d. At least 60 days’ notice is expected from an investor in event of withdrawal from investment plan which should coincide with the end of a cycle. Failing to do so attracts 20% of investment capital.
e. The sponsor will receive and provide updates on the status of the farm by email/WhatsApp, the investor is expected to review all notifications, updates and reports from Agrostory as they represent a record of information for your sponsorship contribution.
f. You are entitled to request for a physical visit to your sponsored Farm, however, you must provide us with at least 14 days’ notice to schedule a visit.
g. At the beginning of a farming cycle, you will be expected to pay costs related to the lease of land for farming, ploughing, seeds/livestock, fertilizers, maintenance costs, irrigation and the cost of supervision and administration. All costs are included in your sponsorship contribution as stated in the project proposal including insurance.
h. More so, you agree that sponsoring a farm, your contributions are tied and available for the entire duration of the farming cycle and neither Agrostory nor the farmers can or will refund your contribution until the successful completion of the contract period.
The percentage ROI from a successful farming cycle of a sponsored farm are remitted to the account number you provided to the Admin when the produce is harvested and sold (that is after the completion of the farming cycle).
i. At the end of a successful contract period, you can decide whether to withdraw your funds or renew your contract. You can sponsor two or more different farms at once provided you have the capacity.
j. At the end of each farming cycle, there’s always a period of 2 weeks before the new cycle begins, this is to enable us gather materials for the next cycle.
k. You acknowledge that you do not own any of the farms cultivated and are only entitled to the produce of any farming cycle you participate in.
l. Agrostory reserves the right to amend this MOU from time to time.
m. This MOU may be terminated by mutual agreement of the parties and shall automatically terminate upon completion of all responsibilities stated herein unless otherwise amended.
5. INSURANCE CLAUSE
The Insurance fee shall be a non-refundable percentage of the total Investment Capital valued according to the farm risks obtainable/ chosen investment crop and payable every certain number of months subject to the tenets of the Nigerian Agricultural Insurance Corporation.
Like every other business, agriculture has its peculiarities and risks, however, to ease your mind, all farms under our care are insured with Nigerian Agricultural Insurance Corporation should there be any damages or losses due to pest invasion, drought, or any other inevitable factor and our well-trained professionals will try to beat any obstacles that may surface, so as to ensure a bountiful harvest and a successful farming experience.
6. REPRESENTATION AND WARRANTIES
These are statements (written or oral) made by the investor which we rely upon as valid and accurate.
a. That you are above the age of 20years and can take financial decisions.
b. That all personal information that you provide about yourself is accurate and true to the best of your knowledge.
c. That you hold a bank account in Nigeria in your own name and will use your account to transfer money to our account when you sponsor a farm and to receive funds of contribution made and profits earned.
d. That you have carefully considered the risks involved in agriculture investment services and you will only ever sponsor with your own money unless you are authorized on behalf of a third party and we agree that you may act on behalf of a third party with proof of action.
e. That you are not using any illegal funds or attempting to launch by sponsoring a farm if you are registering or accepting these terms on behalf of a legal entity such as a company, trust or partnership.
f. That you are not breaching any laws or regulations that are applicable to you or any company, trust, or partnership upon whose instruction you are acting.
7. DISPUTE RESOLUTION CLAUSE
1. In the event of a dispute arising out of or in connection with this MOU including any question regarding its existence, validity, or termination. The parties shall first seek settlement of that dispute by conciliation in accordance with the Nigeria Conciliation Rules which rules are deemed incorporated by reference into this clause.
2. Where more than one conciliator is indicated, parties shall be entitled to appoint one conciliator each but the 3rd conciliator shall be mutually appointed by the parties.
3. If the dispute is not settled by conciliation within 30 days of the appointment of the conciliator(s) or such further period as the parties shall agree in writing, the dispute shall be referred to and finally resolved by arbitration under the Nigeria Arbitration Rules which rules are deemed to be incorporated by reference into this clause.
4. Where more than one arbitrator is indicated, parties shall be free to appoint one arbitrator each but the 3rd Arbitrator shall be mutually appointed by the parties.
5. The language to be used in the conciliation and in the arbitration shall be English.
6. The governing law of the MOU shall be the substantive law of Nigeria.
7. The number of arbitrator(s) shall be three unless parties agreed in writing that the arbitrator should be one.
8. The seat, venue, or legal place of the conciliation or arbitration shall be in Nigeria; the city of Lagos or any other city parties shall agree in writing.