DATED THIS DAY OF YEAR 2012

BETWEEN

AYAMAS CONTRACT FARMING SDN BHD

(Company No. 580778-V)

AND

(NRIC No. (New))

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CONTRACT FARMING AGREEMENT

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THIS AGREEMENT is made the day of year

BETWEEN

The party whose name and particulars are more particularly specified in Section 1 of the First Schedule hereto
(hereinafter referred to as “ACFSB”) of the one part

AND

The party whose name and particulars are more particularly specified in Section 2 of the First Schedule hereto
(hereinafter referred to as “the Contract Farmer”) of the other part.

WHEREAS:

A ACFSB is in the business of broiler contract farming.

B The Contract Farmer has agreed to undertake contract farming for ACFSB subject to and upon the
terms and conditions hereinafter contained.

WHEREBY IT IS AGREED as follows: -

PART I BROILER SUPPLY

1 THE CONTRACT

ACFSB shall sell and the Contract Farmer shall purchase day-old-chicks (hereinafter referred to as “Chicks”)
and feeds (hereinafter referred to as “Feeds”) from ACFSB for the purposes of rearing and supplying mature
broilers (hereinafter referred to as “Broilers”) by the Contract Farmer to ACFSB subject to and upon the terms
and conditions hereinafter contained.

2 DURATION

This Agreement shall commence on the date specified in Section 3a of the First Schedule (“Commencement
Date”) and shall remain in force for a term as specified in Section 3b of the First Schedule (“Contract Term”)
from the Commencement Date. Notwithstanding the above, the parties hereby agree that AFCSB shall have the
absolute right to review the agreement on an annual basis. In the event that AFCSB decides that the continuance
of this agreement is not viable for any reason whatsoever, AFCSB shall have the absolute right to terminate this
Agreement in accordance with Clause 34 of this Agreement.

3 PURCHASE PRICES

ACFSB shall purchase the Broilers from the Contract Farmer at the delivered price as specified in Section 4a of
the First Schedule or the ex-farm price as specified in Section 4b of the First Schedule (hereinafter referred to as
“the Broiler Prices”) and ACFSB shall have the sole right to choose between the two said prices whereupon the
Contract Farmer is bound.

The contract prices set in Section 4 of the First Schedule are interrelated to the chick prices in Section 7 of the
First Schedule and the feed prices in Section 10 of the First Schedule, so that any changes to these prices may
affect changes to any each of these prices. In the event of any changes to these prices require a change to these
contract prices herein, it shall first be mutually agreed upon.

4 SUPPLY CONDITION

The quantity of Broilers to be supplied by the Contract Farmer to ACFSB shall not be less than Ninety Four
percent (94%) of the total numbers of Chicks input for the period as specified in Section 6 & 7 of the First
Schedule herein for supplied to the Contract Farmer by ACFSB hereunder. The total numbers shall be multiple
of 12 the monthly chick input quantity or multiple of 6 the batch chick input quantity, accordance with Section 8
of the first Schedule herein

ACFSB 1 CF2012
5 REARING

5.1 ACFSB shall endeavor to provide the Contract Farmer with technical assistance and veterinary
services. The Contract Farmer shall permit ACFSB and its representatives to inspect the farm or farms
from time to time.

5.2 The Contract Farmer shall ensure the availability of clean water and maintain the farm in a clean and
proper condition consistent with the practices of good husbandry.

5.3 The Contract Farmer shall separate the male and female Broilers when they are about ten (10) days of
age and have them reared separately. In case of automatic feeder use in the farm, the males should be
placed at the end of the controlling pan to drive the feed intake.

5.4 The Contract Farmer shall ensure that the Broilers reared are healthy and free from disease by having
their farm fenced and observe strict bio-security by restricting access of unauthorized persons and such
other measures; and shall prevent & control rodents, wild birds, flies, beetles, ants and other disease
carrying vectors from lateral transmission of disease.

5.5 In the event that a disease outbreak occurs, the farmer must immediately inform ACFSB and a written
report must be submitted to ACFSB stating when the outbreak started and at what age of the Broilers.
An epidemiological study shall be carried out by the Contract Farmer with the assistance of
representative(s) from ACFSB to minimize the chances of re-infection on the next batch. A report shall
be made by the Contract Farmer to the Department of Veterinary Services if the mortality rate is more
than three percent (3%) a day (or such other percentage as determined by the Department of Veterinary
Services from time to time).

5.6 During the entire grow-out period, the Broilers shall not be treated with drugs or medications which
contain NITROFURAN, CHLORAMPHENICOL or related chemicals or such other substances banned
by the relevant authorities (hereinafter referred to as “Banned Substances”). In the event that Broilers
delivered to ACFSB appear to or are found to have been treated with Banned Substances, ACFSB shall
have the right to reject the whole load of Broilers or where the Broilers have been received, to destroy
or dispose of the slaughtered Broilers as ACFSB may deem fit without any payment to the farmer and
without prejudice to the rights of ACFSB to claim compensation from the Contract Farmer for such
loss.

5.7 ACFSB may at its absolute discretion direct the Contract Farmer to purchase all drugs and vaccines to
be administered to the Broilers only from ACFSB or its authorized suppliers. In the event where any
drugs or vaccines is not available or where it is necessary to purchase them from other suppliers then
the approval of ACFSB must be first sought.

5.8 The Contract Farmer shall provide ACFSB with all the necessary information required within
reasonable time frame for evaluation, assessment and grading of their farm for production planning
purposes.

6 WEIGHT

6.1 At the time of weighing at the processing plant or plants designated or to be designated by ACFSB
from time to time, all Broilers that is dead for any reason whatsoever or diseased shall be rejected. The
accepted Broilers shall then be weighed live at the processing plant or plants and the weight derived
therefore shall be referred to as the “Live Weight”. The Contract Farmer or his representatives shall be
entitled to be present at the weighing.

6.2 The Contract Farmer shall ensure that for each delivery: -

6.2.1 at least 90% of the number of the accepted Broilers in each delivery shall have a Live Weight
of 1.30 kg to 2.20 kg each (hereinafter referred to as “the First Live Weight”); and

ACFSB 2 CF2012
 6.2.2 at least 60% of the number of the accepted Broilers in each delivery shall have a Live Weight
of 1.45 kg to 1.80 kg each (hereinafter referred to as “the Second Live Weight”) and
alternatively a Dressed Weight of between 1.10 kg to 1.35 kg each (de-feathered and without
neck, viscera, lungs, leaf fat, head and feet); and

6.2.3 not more than 35% of the number of the accepted Broilers shall fall below a Dressed Weight
of 1.10 kg each.

6.3 In the event that: -

6.3.1 less than 90% of the number of the accepted Broilers of a particular delivery fall within the
First Live Weight range, ACFSB shall have the right to reject the whole delivery but if
ACFSB chooses to accept the delivery, each of the Broilers that fall outside the lower limit of
1.30 kg of the said range shall be paid the weight of one half (1/2) only of the average First
Live Weight or a weight of 0.875 kg only whichever is lower and/or where the average live
weight of Broilers of such delivery fall outside the upper limit of 2.20 kg of the said range, it
shall be paid accordance with the election at clause 6.9 subject to clause 6.7.2.

6.3.2 less than 50% of the number of the accepted Broilers of a particular delivery fall within the
Second Live Weight or alternatively the Dressed Weight range, ACFSB shall have the right to
reject the delivery but if ACFSB chooses to accept the delivery, the payable Weight shall be
adjusted by deducting from every Broilers that fall short of the said 50% margin the weight at
the right hand column against the corresponding percentage of shortfall at the left hand
column of the table below.

Shortfall In Requirement Weight To Be Deducted For Non-Compliance

1 - 5% 0.1 kg
6 - 10% 0.2 kg
11 - 15% 0.3 kg
16 - 20% 0.4 kg
21 - 25% 0.5 kg
26 - 30% 0.6 kg
31 - 35% 0.7 kg
36 - 40% 0.8 kg
41 - 45% 0.9 kg
46 – 50% 1.0 kg

6.3.3 more than 30% of the number of the accepted Broilers of a particular delivery fall below the
Dressed weight of 1.10 kg margin, ACFSB shall have the right to reject the delivery but if
ACFSB chooses to accept the delivery, the payable weight shall be adjusted by deducting
from every Broilers that exceed the said 30% margin the weight shown in the right hand
column against the corresponding percentage of excess at the left hand column of the table
below.

Percentage limit exceeded Weight Deduction Per Broiler

>30% 0.5 kg
>31% 0.6 kg
>32% 0.7 kg
>33% 0.8 kg
>34% 0.9 kg
>35% 1.0 kg

6.4 Contract Farmer covenants that the Broilers shall not have any stone in the gizzard or feed in the crop
on delivery. Such Broilers may be rejected or accepted at ACFSB’s sole discretion. If they are
accepted, ACFSB shall have the right to deduct from each of such Broilers a weight the quantum of
which shall be absolutely decided by ACFSB but which shall not exceed one (1) kg per Broiler.

ACFSB 3 CF2012
6.5 The Contract Farmer further covenants that the Broilers shall not have black dots on their feet. Such
Broilers may be rejected or accepted at ACFSB’s sole discretion. If accepted, ACFSB shall have the
right to deduct from each of such Broilers the following weight in kilogram:-

No. of accepted Broilers x Average weight x 0.05 x 1.80

Purchase Price

6.6 a) ACFSB reserves the right to reject any bruised or damaged Broilers, whether live or dressed,
regardless of the cause of such bruises or damages. If such bruises or damages are discovered
after the birds have been slaughtered, the weight to be deducted shall be 135% of the Dressed
Weight of such birds.

For the purpose of this contract, bruise and damage shall have the following respective
meanings: -

Bruise Discoloration of a diameter of half an inch or more at any part of the bird which is
purple, blue, red, yellow or pink in colour.

Damage Tear of skin, tear or protrusion of bones or dislocation of joints.

b) All Broilers, whether live or dressed, will have to comply with ACFSB’s Quality Control
Department’s guideline attached hereto and marked as the Second Schedule.

6.7 Notwithstanding the above the total weight of each delivery for the purpose of determining the payable
weight shall be the lower of the following weights: -

6.7.1 the Live Weight of all the accepted Broilers subject to all the deductions in clause 8; or

6.7.2 if the average live weight of the Broilers in that delivery exceeds 1.75 kg the weight shall be
deemed to be 1.75 kg to be multiplied by the number of accepted Broilers subject to ACFSB’s
discretion to add a maximum of 0.05 kg to each of the Broilers if ACFSB deems that the
circumstances justify it.

6.8 Provided always that all the conditions under clause 6.2 and 6.7 are met, an incentive according to
Section 5 of the First Schedule shall be paid to the Contract Farmer.

6.9 ACFSB reserves the right to exempt an aggregate of 20% of the Contract Farmer’s deliveries from:-

6.9.1 the deduction clause 6.3.2 & 6.3.3; and/or

6.9.2 clause 6.7.2, provided always that if the average live weight of each Broiler in that delivery
exceeds 2.20 kg the weight shall be deemed to be 2.20 kg multiplied by the number of
accepted Broilers subject to ACFSB’s discretion to add a maximum of 0.05 kg to each
Broilers if ACFSB deems that the circumstances justify.

6.10 Unless the exemption elected grant any waiver of the clauses herein the determination of payable
weight shall always be subjected to the deduction clauses under 6.1, 6.2, 6.3, 6.4, 6.5, 6.6 & 6.7.

6.11 In the event ACFSB decides to pay ex-farm price to the Contract Farmer, ACFSB shall have the right
to appoint a representative or representatives to verify the weight of broilers at the Contract Farmer’s
farm or farms. In calculating the weight for determination of price, the parties hereto agree that broiler
crates, broiler which are sick or have bruises or are injured in any way or dead or have water on their
bodies shall be excluded from the weight.

6.12 Payment of the purchase price shall be made to the Contract Farmer approximately six (6) weeks after
delivery and after setting-off of any payments that may be due from the Contract Farmer to ACFSB for
the purchase of Chicks, Feeds, or other deductions or payments which may be due from the Contract
Farmer to ACFSB.

ACFSB 4 CF2012
7 DELIVERY

7.1 Delivery of the Broilers shall be made at the time and place (within Wilayah Persekutuan, Selangor,
Province Wellesley and Johore) specified or to be specified by ACFSB from time to time. The
arrangements and costs of the delivery shall be borne by the Contract Farmer with their respective
transporter.

7.2 The Broilers shall be delivered in crates to be supplied by the Contract Farmer. A rebate of Ringgit
Zero and Sen Two (RM0.02) only per Broiler delivered to the plant shall be paid to the Contract
Farmer for the supply of such crates.

7.3 The Broilers shall be delivered in numbers of ten (10) per crate provided that ACFSB shall have the
right to vary the number to nine (9) or twelve (12) per crate by prior notice to the Contract Farmer.

7.4 Every delivery shall be accompanied by a delivery order signed by the Contract Farmer and counter-
signed by the driver of the lorry making the delivery. The delivery order shall contain the following
particulars: -

7.4.1 number of crates being delivered;

7.4.2 total number and weight (ex-farm) of the Broilers;

7.4.3 farm code and name, date of input and delivery order number;

7.4.4 such other information as ACFSB shall deem necessary from time to time.

7.5 All deliveries scheduled to be made shall be made notwithstanding that the date of delivery shall fall on
a public holiday unless notified otherwise by ACFSB who shall have the right to nominate the
following day or any other day as the day of delivery.

7.6 The Contract Farmer shall ensure that the lorry (ies) being used to deliver the Broilers (either owned by
the Contract Farmer or its transporter) shall be cleaned prior to and after delivery of the Broilers. Such
cleaning process shall be conducted at ACFSB’s premises or any other places as ACFSB may direct
from time to time using the cleaning facilities as may be provided by ACFSB.

7.7 For the purposes of Clause 7.6 above, ACFSB may, at its absolute discretion: -

a) Direct that the Cleaning process be conducted under supervision of an ACFSB’s personnel; and

b) Impose any reasonable fee (which fee shall be payable by the Contract Farmer) for the usage of the
cleaning facilities as may be provided by ACFSB at the premises stated in Clause 7.6 above (“the
Cleaning Fee”).

7.8 The Contract Farmer shall ensure that in discharging its responsibility as stated under Clause 7.6 above,
it shall adhere strictly to ACFSB’s rules and guidelines regarding Waste Water Treatment or any other
rules and regulations, by-laws and/or directions as may be imposed by the relevant authorities from
time to time.

8 DEFAULT IN DELIVERY

8.1 In making deliveries, the Contract Farmer shall comply strictly at all times with the delivery schedule
as to the time, date, place and quantity specified for each delivery from time to time by ACFSB. The
Contract Farmer shall supply and confirm the delivery schedule with ACFSB one week in advance.

Variations to the above are permitted only under the following circumstance: -

ACFSB 5 CF2012
 Time of delivery - a delay of up to twenty-four (24) hours shall be permissible subject however to the
Contract Farmer giving notice to ACFSB of the delay at least twenty-four (24) hours prior to the
originally scheduled time of delivery and ACFSB accepting the said notice.

8.2 ACFSB also reserves the right to reject the whole of any delivery, even after acceptance of the delivery
and/or after any or all of the delivered Broilers have been slaughtered, if any bird within that delivery is
found to be diseased. For this purpose, the opinion of a qualified veterinary surgeon either in the
employ of ACFSB or the Government shall be final and conclusive. The Contract Farmer shall, upon
notification, forthwith remove and dispose off the rejected birds at his own cost and expense failing
which ACFSB shall dispose off them in any manner it deems fit and the Contract Farmer shall be liable
to ACFSB for all incidental cost and expenses of such disposal.

8.3 When there is a default in delivery, whether by reason of non-delivery or short delivery or by rejection
or failure to comply with the total delivery numbers, ACFSB shall have the right to exercise either of
the following courses of action at its sole discretion: -

8.3.1 require the Contract Farmer to make an alternative delivery within a stipulated time; or

8.3.2 obtain alternative delivery from other sources in which case the Contract Farmer shall be
liable for the increased cost.

In either event, the Contract Farmer shall be further liable to pay ACFSB agreed liquidated damages
calculated at Ringgit Three (RM3.00) only per bird for every bird that is not delivered or rejected.

8.4 In the event that the number of Broilers delivered by the Contract Farmer exceeds the agreed quantity,
the excess may be accepted or rejected at ACFSB’s discretion. If accepted, these shall be deducted
from each of the Broilers which are in excess of the agreed quantity Ringgit One and Sen Seventy-Five
(RM1.75) only per Broiler.

8.5 It is expressly agreed between the parties that if the Broilers are delivered outside of the scheduled or
agreed time, date or place but are subsequently accepted by ACFSB such deliveries shall be considered
as unscheduled deliveries and ACFSB shall be entitled to deduct Ringgit Zero and Sen Eighty
(RM0.80) only per broiler for every broiler that is accepted in addition to the adjustments or deductions
under Clause 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7 hereof.

PART II CHICKS SUPPLY

9. The input of chicks under this Contract shall commence and end at the date specified in Section 6 of
the First Schedule (hereinafter referred to as “the Input Period”). Such chicks input schedule shall be
supplied to and confirmed with ACFSB at least 21 days in advance of the estimated next chicks input
or 5 days before the estimated depletion of broilers whichever is earlier. Any emergency request for
change in timing of input schedule must be base on acceptable grounds of exceptional circumstances
and made at least twenty-four (24) hours in advance.

10. During the Input Period, ACFSB shall supply the Contract Farmer with good quality Chicks
(hereinafter referred to as “the Chicks”) and the Contract Farmer shall purchase the Chicks from
ACFSB upon the terms and conditions herein contained at the price stated in Section 7 of the First
Schedule herein.

11. The Contract Farmer shall purchase and rear the quantity of Chicks supplied by ACFSB accordance to
the numbers stated in Section 8 of the First Schedule for the entire duration of under this Agreement. If
by batches each batch of broiler matures at an average of 45 days and require an average 60 days of
broiler farming cycle per batch which come to approximately 6 batches a year.

12 ACFSB shall have the right to decide whether to supply Ross Chicks, COBB Chicks, Hubbard Chicks
or any other good quality breed Chicks to the Contract Farmer.

13. The Contract Farmer hereby undertakes to: -

13.1 buy the Chicks from ACFSB only and not from any other source(s);
ACFSB 6 CF2012
 13.2 bear the costs and expenses of rearing the Chicks to maturity and delivery to ACFSB; and

13.3 manage the broiler farm in accordance with the advice and recommendation as may be given
by ACFSB from time to time.

14. If plastic boxes are used by ACFSB to deliver the Chicks, such plastic boxes shall be returned to
ACFSB in good condition. In the event of loss or damage to the plastic boxes, the Contract Farmer
shall be liable to pay ACFSB compensation at the rate of Ringgit Fifty (RM50.00) only per plastic box
lost or damaged or such other rate as may be determined by ACFSB from time to time.

15. ACFSB shall only entertain complaints of Contract Farmers on the quality of Chicks up to 7 days from
the date of delivery of the Chicks to their farms. Such complaints must be made in writing within the
said 7 days stating clearly the reason or reasons and the quantum being claimed, failing which ACFSB
is not obliged to entertain the complaints. ACFSB shall instruct the supplier or suppliers of the Chicks
to attend to such complaints within 7 days of receiving the written notice, failing which ACFSB shall
accept and compensate the claims in excess of the acceptable one (1) percent mortality and culling after
verification by ACFSB. ACFSB is entitled to the supplier or suppliers of the Chicks compensating
ACFSB within 20 days of attendance of complaints when the quantum of compensation has been
decided upon. In any instance, ACFSB shall not be liable for the claims and/or deaths of the Chicks
resulting from any wilful act or negligence of the Contract Farmer or any circumstances not in the
control of ACFSB (Act of God).

16. If the Contract Farmer fails to accept delivery of the Chicks, the Contract Farmer shall pay to ACFSB a
sum equal to the Chick Price as specified in Section 7 of the First Schedule per Chick for every Chicks
which is not accepted without prejudice to ACFSB’s rights to claim any loss or damage which ACFSB
may suffer or incur in consequence thereof.

17. The Contract Farmer shall pay for the Chicks upon delivery or ACFSB shall be entitled to charge or
offset the price of Chicks against any payment due to the Contract Farmer for Broilers supplied by the
Contract Farmer to ACFSB (provided it is sufficient) under the said Agreement. Failure to pay for the
chicks constitute a default which entitle ACFSB to exercise their rights in recovering such amount
owing.

18. If so requested by ACFSB, the Contract Farmer shall provide to ACFSB a form of collateral free from
encumbrances and acceptable to ACFSB as security for the amount owing (credit terms provided) by
the Contract Farmer to ACFSB for the supply of Chicks.

19. ACFSB shall not be in any manner liable to the Contract Farmer for failure to supply the Chicks if such
failure shall be caused by or arised from force majeure including any event or circumstance (whether
arising from natural causes human agency or otherwise) beyond the control of ACFSB including (in so
far as beyond such control but without prejudice to the generality of the foregoing expression) strikes,
lockouts or other labour disputes, shortage of labour or materials or parent stock, riot, civil commotion,
aircraft, fire, flood, drought, disease, delay in transportation and any breakdown in machinery.

20 The Chicks supplied to the Contract Farmer shall be strictly for the purpose of fulfilling the Contract
Farmer’s obligations under the said Agreement and shall not be sold to a third party.

PART III FEED SUPPLY

21. The feed supply under this Contract shall commence and end at the date specified in Section 9 of the
First Schedule (hereinafter referred to as “the Supply Period”).

22. During the Supply Period, ACFSB shall supply to the Contract Farmer poultry Feeds produced by KFC
Integrated Poultry Industry Sdn Bhd and the Contract Farmer shall purchase the Feeds from ACFSB,
upon the terms and conditions contained.

23. The Contract Farmer hereby undertakes to purchase Feeds from ACFSB only and not from any other
sources.

ACFSB 7 CF2012
24. During the Supply Period, ACFSB shall supply to the Contract Farmer the Feeds at the price stated in
Section 10 of the First Schedule (hereinafter referred to as “the Feed Prices”) herein.

The Feed Prices may be changed at the discretion of ACFSB if ACFSB chooses to conform with
market prices and in the event ACFSB decide to change the Feed Prices as specified in the said Feed
Supply Agreement, for every Ringgit Malaysia One (RM1.00) per 50kg bag only upward adjustment in
the Feed Prices it shall be followed by Ringgit Malaysia Zero and Sen Four point (RM0.04) (Live
Weight delivered) only per kilogram upward adjustment to the Broiler Prices and for every Ringgit
Malaysia One (RM1.00) per 50kg bag only downward adjustment in the Feed Prices it shall be
followed by Ringgit Malaysia Zero and Sen Four point (RM0.04) (Live Weight delivered) only per
kilogram downward adjustment to the Broiler Prices.

Any adjustment to the Feed Prices above shall cause the Broiler Prices adjustment to be effective
approximately Forty Five (45) days from the date of first delivery of feed with such adjustment.

25. The Feeds shall conform with the following specifications: -

SPECIFICATION BROILER STARTER BROILER GROWER

Crude Protein (min. %) 21.0 19.0
Crude Fiber (max. %) 5.0 5.0
Crude Fat (min %) 4.0 4.0
Moisture (max. %) 13.0 13.0
Ash (max. %) 7.5 7.5
Calcium (%) 1.0 1.0
Phosphorus (%) 0.5 0.45

26. The Contract Farmer shall from time to time place a written order of the Feeds at least Five (5) days
prior to the proposed date of delivery.

27. The Contract Farmer undertakes to order the amount of the Feeds from ACFSB in accordance with the
rate as stated in Section 11 of the First Schedule which is derived using the following formula: -

Total quantity of Feeds (Kg) = Number of D.O.C. contracted x 1.75 (+/-0.05) x 1.90 (+/-0.05) Kg.

ACFSB shall however, have the right not to supply the amount of Feeds ordered by the Contract
Farmer if it is of the opinion that the amount ordered exceeds the requirement.

28. If the Contract Farmer fails to order and take delivery of the agreed amount of Feeds, the Contract
Farmer shall be liable to pay ACFSB agreed liquidated damages calculated at Ringgit Malaysia Twelve
(RM12.00) only for every 50 kilogram short ordered or not accepted.

29. Prior to harvesting of broiler at maturity, the Contract Farmer if required by ACFSB shall use
Withdrawal Feed in accordance with directions given by veterinarian appointed by ACFSB.

30. The Feeds ordered by the Contract Farmer, shall be for the purpose of fulfilling the Contract Farmer’s
obligations under the said Agreement of even date made between the parties herein. ACFSB reserves
the right to reject any orders for Feeds which ACFSB suspects are not for the fulfillment of the
Contract Farmer’s said obligations.

31. The Contract Farmer shall pay for the Feeds upon delivery or ACFSB shall be entitled to charge/offset
the price of the Feeds supplied to the Contract Farmer against any payment due to the Contract Farmer
for Broilers supplied by the Contract Farmer to ACFSB (provided it is sufficient) under this
Agreement. Failure to pay for the feeds constitute a default which entitle ACFSB to exercise their
rights in recovering such amount owing.

32. ACFSB shall not be in any manner liable to the Contract Farmer for failure to supply the Feeds if such
failure shall be caused by or arise from force majeure including any event or circumstance (whether
arising from natural causes human agency or otherwise) beyond the control of ACFSB including (in so
far as beyond such control but without prejudice to the generality of the foregoing expression) strikes,
lockouts or other labour disputes, shortage of labour or materials or parent stock, riot, civil commotion,
aircraft, fire, flood, drought, disease delay in transportation and any breakdown in machinery.

ACFSB 8 CF2012
33. If so required by ACFSB, the Contract Farmer shall provide to ACFSB a form of collateral free from
encumbrances and acceptable to ACFSB as security for the amount owing (credit terms provided) by
the Contract Farmer to ACFSB for the supply of Feeds.

PART V
TERMINATION

34. In the event that: -

a) during the annual review as referred to in clause 2 above, AFCSB is of the absolute opinion
that the continuation of this Agreement is not viable for any reason whatsoever
notwithstanding the Contract Farmer’s compliance of its duties and responsibilities under this
Agreement, or

b) the Contract Farmer makes default in or commits a breach of this contract or

c) the Contract Farmer continuously fails to remedy any breach of this contract or continuously
fail to cooperate with directive made by qualified personnel of ACFSB accordance with this
contract, or

d) any distress or execution shall be levied upon the Contract Farmer’s property or assets, or

e) the Contract Farmer shall make or offer to make any arrangement or composition with his
creditors, or

f) the Contract Farmer commits any act of bankruptcy, or

g) any petition or receiving order in bankruptcy shall be presented or made against the Contract
Farmer, or

h) the Contract Farmer is a limited company and any resolution or petition to wind up its
business (other than for the purpose of amalgamation or reconstruction) shall be passed or
presented, or if a receiver of such company’s undertaking property or assets or any part
thereof shall be appointed,

ACFSB shall have the right forthwith to immediately determine this contract then subsisting, and,
upon written notice of such determination being posted to the Contract Farmer’s last known
address, any subsisting contract shall be deemed to have been determined without prejudice to any
claim or right ACFSB may otherwise make or exercise against the Contract Farmer. Upon such
determination, all amounts due and owing to ACFSB by the Contract Farmer shall become
immediately payable.

35. Where ACFSB elects to charge/offset the price of the Chicks and/or Feeds supplied to the Contract
Farmer (as provided for under clause 17 and clause 31 above) against any payment due to the Contract
Farmer for Broilers supplied by the Contract Farmer to ACFSB under this contract and such deduction
results in the deficit (i.e. payment due to Contract Farmer for Broilers supplied by Contract Farmer to
ACFSB is insufficient to offset the price of the Chicks and the Feeds as stated above), then ACFSB
shall have the right to treat such insufficiency as a breach on part of the Contract Farmer of this
contract and thereafter, ACFSB shall have the right to immediately determine this contract as provided
under clause 34 above.

PART IV GENERAL

36. No failure or delay by ACFSB hereto in exercising any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial execution of any right, power or privilege
hereby conferred preclude any further exercise thereof or the exercise of any other right, power or
privilege hereby conferred.

ACFSB 9 CF2012
37. Unless otherwise expressly authorized by ACFSB, the Contract Farmer agrees and undertakes not to
disclose to any third party, or use for any purpose otherwise than for the purposes of this Agreement,
all or any part of the information disclosed to it by ACFSB, directly or indirectly, and the contents of
this Agreement, during the continuance of this Agreement and after its termination.

38. Time wherever mentioned in this Agreement shall be of the essence.

39. This Agreement shall not be assigned without the written consent of ACFSB whose decision shall be
final.

40. This Agreement shall be binding on the heirs, personnel representatives and successors-in-title, as the
case may be, of the parties herein.

41. Nothing in this Agreement shall create, or be deemed to create, a partnership or the relationship of
principal and agent or employer and employee between the parties.

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ACFSB 10 CF2012
 THE FIRST SCHEDULE REFERRED TO ABOVE

Section Description Particulars

1 ACFSB AYAMAS CONTRACT FARMING SDN BHD (Company

No. 580778-V), a company incorporated in Malaysia and
having its registered office at Level 17, Wisma Idris, No 17
Jalan Sultan Ismail, 50250 Kuala Lumpur

2 Contract Farmer

3. Duration
a Commencement Date

b Contract Term

4 Contract Prices:
a. Delivered Ringgit Malaysia Four and Sen Zero (RM4.00) only per
kilogram live weight

b. Ex-farm Ringgit Malaysia Three and Sen Seventy Seven (RM3.77)

only per kilogram live weight

5 Incentive Applicable incentive rate according to percentage number of

broilers within the KFC 9 piece cut weight of between 1.10 to
1.35 kg dressed weight per bird

Accordance with clause 6.8 and within Total incentive per

the following percentage: - kg live weight
(RM)

Base 50% 0.060

51% - 60% 0.065
61% - 70% 0.070
71% - 80% 0.075
> 81% 0.080

6 Chick Input

7 Chick Prices Ringgit One and Sen Twenty (RM1.20) only per Chick
(ROSS/HUBBARD)
Ringgit One and Sen Thirty (RM1.30) only per Chick
(COBB)

8 Chick Quantity nos per batch +/-15%

9 Feed Supply

10 Feed Prices Broiler Starter - RM73.50 per 50 kg bag or

RM1, 455.00 per metric tone.
Broiler Grower - RM71.50 per 50 kg bag or
RM1, 415.00 per metric tone.

11 Feed Quantity Approx. 60 bags (50 kg per bag) per 1000 chicks

ACFSB 11 CF2012
 THE SECOND SCHEDULE REFERRED TO ABOVE

ACFSB’ s Quality Control Department

Guidelines for Analysis of Undergrade

No. Checks Frequency Sample Area to check Procedure

size
1. Excessive Feed in 50 birds x 4 200 After head puller Using a hand counter, count how
Crop many birds have feed in crop by
observing a bulge the size of a ping
pong ball under the skin in the neck
area

2. Black Feet 50 birds x 5 250 Before feet remover Using a hand counter, count the no. of
birds that have black feet Area of scab
0.5cm2 is considered as a non-
conformance

3. Scratches 50 birds x 2 100 After head puller Using a hand counter, count the no. of
birds with scratches of >1” and if
scratches <1”, must have more than 4
in an area of 12” to be considered a
non-conformance

4. Breast Blisters 50 birds x 2 100 After head puller Using a hand counter, count the no. of
birds with blister of 0.5cm2 or if blister
>3, in an area of 3cm 2 to be
considered a non-conformance

5. Scabs 50 birds x 2 100 After head puller Using a hand counter, count the no. of
birds with scabs if it is wide spread
along the skin or concentrated in an
area of 12”

6. Bruises + Broken 50 bird x 2 100 (each After head puller Using a hand counter, count the no. of
i. Breast segment) birds with bruises 12” to be counted as
ii. Wing a non-conformance
iii. Thigh
iv. Drumstick

7. Broken wings 50 birds x 2 100 (each Post depicker = after Using a hand counter, count the no. of
i. Post depicker segment) defeathering machine birds with broken wings after
ii. Pre spinchiller Pre spinchiller = before defeathering machine and before
spinchiller going into the spinchiller. A bird is
considered to have broken wing if the
humerus, ulna or radius of the wing
are broken OR the wing tip is broken
and protruding

8. Broken drumstick 50 birds x 2 100(each Post rehanger = after Using a hand counter, count the no. of
i. Post rehanger segment) rehanging birds that have broken drumstick after
ii. Pre spinchiller Pre spinchiller = before rehanging and before going into the
spinchiller spinchiller. A bird is considered to
have broken drumstick if the tibia or
fibula is broken

ACFSB 12 CF2012
IN WITNESS WHEREOF the parties hereto have hereunto set their hands the day and year first above written.

SIGNED BY }

for and on behalf of }

AYAMAS CONTRACT FARMING SDN BHD }

in the presence of : }

________________________________________

SIGNED BY }

(Nric No. ) }

for and on behalf of the CONTRACT FARMER }

in the presence of : } _________________________________

sign & company stamp

________________________________________(witness)
Name :
Nric No. :

ACFSB 13 CF2012