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Force Majeure Clause
Industry juice adds no water or filler to our products so there is a direct impact of increase in commodity pricing on our items. At certain points in time, extreme temperatures, excessive rains, hurricane force winds, pest infestations, terrorism, acts of Government and other foreseen and unforeseen events may cause a fresh market citrus supply shortage. These Force Majeure events lead to rapidly escalating market prices. A Force Majeure event occurs if the average of the “Mostly Low-High Price,” or if not available the average of the “Low-High Price,” F.O.B. shipping point for Midwest reported by the USDA Market News (the “Market Price”) is for three consecutive business days equal to or greater than: (1) $40.00 for 110CT Limes; (2) $35.00 for 115CT Lemons; (3) $35.00 for Oranges; (4) $30.00 for 56CT Grapefruit or (3) $22.50 for 6CT Pineapple. If a Force Majeure event occurs for any of the above types of citrus, we will change from fixed contract pricing to a fixed price PLUS added surcharge. When the Market Price is less than the above trigger price for three consecutive business days, we will return to the agreed upon price.