Outgrowers' Program Clause Samples

Outgrowers' Program. Investor, together with Government and optionally, community representatives, shall establish an Outgrowers' program, the details of which shall be included in the Development Plan, within three (3) years of the Effective Date (the “Outgrowers’ Program”). Under such program, Investor shall develop and exercise exclusive management of the land designated for the Outgrowers' Program on a cost recovery basis for the benefits of the Outgrowers as shareholders in organized cooperatives during the Term. Investor shall have the exclusive rights to, and commits to, purchase produce harvested from the Outgrowers' Program in accordance with the terms of Section 8.10 hereof during the Term. (a) In furtherance of the foregoing, Government shall (i) provide for such Outgrowers' Program 40,000 hectares of land, which is (A) outside the Concession Area but within the Gross Concession Area, (B) selected by Investor pursuant to Section 4.1(d), and (C) free from any Encumbrances; (ii) obtain sources of funding for the Outgrowers' Program with the assistance of Investor through international financial institutions, the World Bank or other such development funds (for the avoidance of doubt, Investor shall have no obligation whatever to provide or raise funding for the Outgrowers' Program); (iii) select, together with Investor, qualified Outgrowers for the Outgrowers' Program; and (iv) establish procedures for managing and seeking solutions for and alleviation of environmental and social issues that may arise out of the Outgrowers' Program. (b) Subject to Government's fulfillment of its obligations under Section 15.3(a), Investor shall (i) assist Government to obtain sources of funding (but, for the avoidance of doubt, not to provide finance) for the Outgrowers' Program through international financial institutions, the World Bank, or other such development funds (for the avoidance of doubt, Investor shall have no obligation whatever to provide or raise funding for the Outgrowers' Program); (ii) identify suitable land for the Outgrowers' Program and communicate with Government to suggest the provision of such suitable land for the Outgrowers' Program; (iii) collaborate with Government in identifying potential Outgrowers for the Outgrowers' Program; (iv) support and assist (but, for the avoidance of doubt, not to provide finance for) Outgrowers with the purchase of equipment and fertilizer and the purchase of oil palm planting materials of the most scientifically advanced proven...