Annex 3

Tobacco contract - Greece

European Community
Preliminary contract for cultivation of tobacco leaves

Tobacco District________________________	County_________________________
Village________________________________	Area___________________________
No. of Farmer's Record___________________	Code of Variety__________________
Date of Signature_______________________	Farmer's Identification Card________
Total Stremma*_________________________	Date of Recording________________
No. of Confirmation of Quota______________	Total Quota_____________________

Between ______________________________________
(Name and address of the buyer) called hereafter "first buyer-manipulator"

and __________________________________________
(Name and address of the farmer) called hereafter "the farmer"

the following preliminary contract is agreed in accordance with the Community laws and articles which are in effect for tobacco cultivation, and particularly the EEC Laws 2075/92, 3478/92 and 84/93.

1. The farmer undertakes to cultivate tobacco, within the area of suitable soils for tobacco, as follows:

   Area___________________________________________________________________________________________
   Town or Village_______________________________________________________
   Name of field_________________________________________________________		stremma___________________
   Name of field_________________________________________________________		stremma___________________
   Name of field_________________________________________________________		stremma___________________
   Name of field_________________________________________________________		stremma___________________
   Name of field_________________________________________________________		stremma___________________
   Variety__________________________________________________________________________________________

    * One-tenth of a hectare or 1 000 m².

   at a total yield that will not exceed .... kg, in accordance with the No. .... of National Tobacco Board (NTB) confirmation of quota, which is attached, to harvest in hands only ripe tobacco leaves, and to cure them with the method suitable for the cultivated variety.

2. If the cultivated variety is cured in the sun under plastic cover, the cover must be at 50-70 cm from the ground so that the curing shed will be open from all sides.
3. The farmer undertakes to use only the seeds or the plants from selected seeds that are approved by the first manipulator or the NTB. Also the farmer is obliged not to use chemicals which are forbidden for tobacco (organic chlorides, etc), and to use strictly only the chemicals approved for tobacco cultivation by the agronomists of the NTB or the buyers, and follow the instructions on the manufacturer's label.
4. The first buyer-manipulator has the right, within the period of validity of this contract, to carry out, in the presence of the farmer, control checks regarding the observance of the obligations that derive from this contract and to take samples against reimbursement.
5. The farmer undertakes the obligation to deliver to the first buyer all the tobacco yielded from the present contracted area that meets the minimum quality characteristics, is clean, pure, healthy, marketable and free from defects that are named in Annex 11 of Community Regulation 3478/92 and does not exceed the maximum quota confirmed, as stated in the above Article 1 of the present contract. Also, the farmer is not allowed to contract with any other buyer to cultivate in the same or different fields the tobacco variety that is the subject of the present contract.

   Except in case of unexpected incidents, the farmer has to deliver to the first buyer-manipulator the whole of his yield before ........ If in any case the delivery is not completed before 15 May 1994, the farmer loses the Community subsidy.

6. The first buyer-manipulator undertakes the obligation, within the limit of the maximum quota as stated in Article 1, to collect the whole yield, harvested from the present area, before............ (same date as Article 5 para 2).

   In the case of delay of delivery after 15 May 1994 because of farmer's culpability, the first buyer-manipulator is released from the obligation of compulsory payment of the subsidy, or in case of delay of collection because of first buyer-manipulator's culpability, the latter bears the cost of the subsidy.

7. The tobacco must be delivered graded and baled according to the regulations provided for the specific variety in the Community law.
   In the case that baling string is required, this string must be of plant material; the use of synthetic material is strictly forbidden.

8. For the sorting method and other details regarding the delivery, it is agreed that all the standards practised in the Greek tobacco market in accordance with the Community regulations are valid.
9. The first buyer-manipulator is obliged to pay the farmer for every kg of tobacco delivered, an amount equal to the subsidy, which is ...... ECU/kg for the 1993 crop and the tobacco variety contracted with the present (which with the current equivalence is..... drachmas/kg) according to an article of Community Regulation 3478/92.
10. The first buyer-regulator undertakes the obligation to pay to the farmer an amount above the subsidy (Article 8), which for the variety contracted with the present, is agreed as follows per quality:

    I/II_________ drachmas/kg
    III _________ drachmas/kg
    IV _________ drachmas/kg

    and adding the subsidy of the above article (calculated with the present equivalence), the farmer will receive:

    I/II drachmas _________+ _________ =
    III drachmas _________ + _________ =
    IV drachmas _________ + _________ =

    It is agreed that the grading of the tobacco at the above qualities I/II, III and IV, will be according to the description of those qualities, as lately amended, included in Index 1 of Regulation 1727/70. The above index is an integral part of this contract; regardless of whether it no longer has effect.

11. In case of disagreement on the quality grading and the technical characteristics of the tobacco, differences will be settled at a first degree court of a three-member committee composed of one representative of the first buyer-manipulator and one of the farmer, under the presidency of the representative of the NTB in the particular area, or at the second degree court by a committee composed of the director or an agronomist named by the county where the farmer is located, a representative of the farmer and a representative of the first-buyer manipulator. The decision of this committee is binding for both parties.
12. The amount of the subsidy and the price per quality must be paid by the first buyer-manipulator within a month after the finish of delivery, by a bank or mail transfer.
13. The present contract is valid for one year.
14. The qualified court is agreed to be the court of the area of the defendant, in case the area of the buyer is out of Greece the qualified court is agreed to be that of the area of the farmer.
15. The present contract is under the law that is in effect for tobacco cultivation, and under the regulations of the Civil Code.
16. The signing of the final contract is agreed to be done at the latest by ........ and the submission of the papers to the NTB before the .........
17. The farmer is a member of the farmer group .............. which is recognized according to Regulation 84/93 and No...... of the Decision of the Minister of Agriculture.
18. The present pre-contract is not transferable and cannot be assigned; it is valid only between the present farmer and the first buyer-manipulator, according to Article 5 para 3 of Community Regulation 2075/92 and Article 2 of Community Regulation 3477/92. The present pre-contract, the submission of which is a precondition of the segment of the final contract between the first buyer-manipulator and the farmer group to which the farmer belongs, was structured and signed in four copies, one for each party, one to be submitted to the farmer group, and one to be an attached and inseparable part of the final contract of cultivation.

__________________
(Place-Date)      

Signatures of contracted parties

Source: Adapted from Demeterious, G., pers. comm.