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    Business ProfileforGroeb Farms, Inc.

    Foods

    Additional business information

    Additional Info:

    UNITED STATES DISTRICT COURT
    NORTHERN DISTRICT OF ILLINOIS
    EASTERN DIVISION
    UNITED STATES OF AMERICA
    )
    )
    )
    No. 13 CR 137
    v.
    )
    )
    Honorable Virginia Kendall
    GROEB FARMS, INC.
    )
    )
    )
    Defendant GROEB FARMS, INC., a Michigan corporation with its principal
    place of business in Onsted, Michigan, by
    and through its undersigned attorney,
    pursuant to authority granted by its Board of Directors, and the United States
    Attorney's Office for the Northern District of Illinois, enters into this Deferred
    Prosecution Agreement. The terms and cond
    itions of this Agreement are as follows:
    The Criminal Information
    1.
    GROEB FARMS waives indictment an
    d agrees to the filing of a one-
    count Information in the United States District Court for the Northern District of
    Illinois, charging that on or about January 25, 2010, in the Northern District of
    Illinois, Eastern Division and elsewhere,
    GROEB FARMS, as part of a fraudulent
    practice, received and bought merchandise
    , namely, twenty-two container loads of
    Chinese-origin honey with a contract va
    lue of $882,178, knowing the same to have
    been imported and brought into the United
    States contrary to law, namely, as part
    of a fraudulent practice in violation of
    Title 18, United States Code, Section 542, in
    that the honey was falsely and fraudulent
    ly imported and brought into the United
    States described as Chinese honey syrup,
    some of which was transported through
    the Northern District of Illinois and late
    r delivered into the
    Northern District of
    Illinois as finished product, in violation of Title 18, United States Code, Sections
    545 and 2. A copy of the Information is attached as Appendix A.
    Acceptance of Responsibility
    2.
    GROEB FARMS accepts and acknowledges responsibility for its
    conduct and that of its current and former
    executives and employees as set forth in
    the Factual Statement attached hereto and incorporated by reference herein as
    Exhibit A, as well as the additional co
    nduct set forth in the Factual Statement,
    1
    which constitutes relevant conduct under United States Sentencing Guidelines
    §1B1.3. GROEB FARMS agrees that it sha
    ll not contest or otherwise challenge the
    admissibility into evidence of the Factual
    Statement, the facts contained within the
    Factual Statement, or any other document
    , testimony, or other evidence the USAO
    NDIL might use in any related criminal
    prosecution against GROEB FARMS in the
    event of a material breach of this Agreement.
    Cooperation
    3.
    GROEB FARMS agrees to cooperate fully with the USAO NDIL and
    with any other agency with which the USAO NDIL requests GROEB FARMS to
    cooperate, regarding any matter about
    which GROEB FARMS has knowledge.
    GROEB FARMS' agreement to cooperate sh
    all extend until the completion of law
    enforcement investigations of any criminal activity relating to the illegal
    importation and entry of honey into the Un
    ited States, including any investigations
    or prosecutions of others, but in no even
    t shall that cooperation be less than the
    duration of this Agreement, that is, twenty-four months.
    4.
    GROEB FARMS agrees that its cooper
    ation, as agreed to in Paragraph
    3 of this Agreement, shall include, but
    is not limited to, th
    e following, although
    GROEB FARMS' cooperation shall not incl
    ude production of materials covered by
    the attorney-client privilege or the work product doctrine:
    (a)
    Completely and truthfully disclosing all information as may be
    requested by the USAO NDIL with respect to the activities of GROEB FARMS and
    its present and former board of directors, agents, officers, executives, and
    employees, as well as any brokers, count
    er parties, other third parties, and
    customers concerning all matters inquired into by the USAO NDIL;
    (b)
    Assembling, organizing, and timely providing on request from the
    USAO NDIL all documents, records, or ot
    her tangible evidence in GROEB FARMS'
    possession, custody, or control;
    (c)
    Using its best efforts to make available its present and former board
    of directors, agents, officers, executives, and employees to provide information
    and/or testimony as requested by the USAO NDIL, including sworn testimony
    before a federal grand jury or in federal
    trials, as well as interviews with federal
    law enforcement authorities. Cooperat
    ion under this Agreement will include
    identification of witnesses who, to GR
    OEB FARMS' knowledge and belief, may have
    material information regarding the matters under investigation;
    2
    (d)
    Providing testimony and other information deemed necessary by the
    USAO NDIL or a court to identify or est
    ablish the original location, authenticity,
    or other evidentiary foundation necessary to
    admit into evidence documents in any
    criminal or other proceeding as requested by the USAO NDIL; and
    (e)
    Disposing on a voluntary bas
    is and according to
    law any illegally
    transshipped, illegally misdeclared, or
    illegally entered Chinese-origin honey,
    whether in raw, blended, or finished form, of which GROEB FARMS has knowledge
    and which resides in GROEB FARMS' possession, custody, or control.
    Fine
    5.
    GROEB FARMS agrees to pay $2,000,000 to the United States as a
    monetary penalty within thirty days of th
    e filing of this Agreement in Court.
    If
    GROEB FARMS fails to fulfill its obligations
    to pay the penalty and is deemed in
    default under the terms of this Agreem
    ent, GROEB FARMS agrees and stipulates
    to the entry of a judgment against it for the unpaid amount and shall fully
    cooperate in that process. The parties ha
    ve agreed to the penalty based on GROEB
    FARMS' financial ability to pay, as conf
    irmed by financial statements and other
    representations made by GROEB FARMS and its representatives to the United
    States, under penalty of perjury and pr
    osecution for false statements.
    GROEB
    FARMS understands that any misrepresent
    ations concerning its financial status
    would constitute a material breach of this Agreement.
    6.
    If GROEB FARMS materially breaches this Agreement as determined
    by the USAO NDIL within its exclusive discretion, any monies paid by GROEB
    FARMS to the United States shall not
    be returned to GROEB FARMS and any
    outstanding sums still owed
    to the United States sha
    ll remain due to the United
    States. The USAO NDIL agrees, however,
    to recommend to
    the Court that the
    amount paid pursuant to this Agreement should be offset against whatever fine the
    Court shall impose as part of its judgment
    in the event of a subsequent prosecution
    against GROEB FARMS.
    Deferral of Prosecution
    7.
    In consideration of GROEB FARMS'
    cooperation, as well its remedial
    actions to date, and its willingness to (i)
    accept and acknowledge responsibility for
    the conduct of its current and former exec
    utives, employees, and agents as detailed
    in the Factual Statement; (ii) have already implemented and continue further
    implementation of new, enhanced remedial
    actions as specified in Exhibit B; (iii)
    demonstrate its future good conduct and full compliance with U.S. importation
    3
    laws, the Food, Drug, and Cosmetic Act ("FDCA"), and other federal laws; (iv)
    educate customers and other industry participants regarding illegally transshipped,
    illegally misdeclared, and unsafe or unwho
    lesome products, including honey; (v)
    continue its cooperation with the USAO NDIL, law enforcement, and other
    government agencies as specified in Paragr
    aphs 3 and 4; (vi) volunteer to dispose
    according to law any honey specified in
    Paragraph 4(e); and (vii) pay the monetary
    penalty set forth in Paragraph 5, the USAO NDIL shall recommend to the Court,
    pursuant to Title 18, United States Code, Section 3161(h)(2), that prosecution of
    GROEB FARMS on the Information filed pursuant to Paragraph 1 be deferred for
    a period of twenty-four months from the date of the Court's Order. Specifically,
    upon execution of this Agreement, and pursuant to Title 18, United States Code,
    Section 3161(h)(2), the USAO NDIL sha
    ll move, unopposed by GROEB FARMS, to
    present this Agreement to the Court and
    move for a continuance of all further
    criminal proceedings, including trial, for a
    period of twenty-four months, for speedy
    trial exclusion of all time covered by such a continuance, and for approval by the
    Court of this deferred prosecution.
    8.
    The USAO NDIL agrees th
    at if GROEB FARMS has not committed a
    material breach of this Agreement for tw
    enty-four months from the date of the
    Court's Order deferring prosecution, th
    e USAO NDIL shall seek dismissal with
    prejudice of the Information filed agai
    nst GROEB FARMS pursuant to Paragraph
    1, and this Agreement shall expire and be of no further force or effect.
    Government Commitment
    9.
    Except in the event of a material br
    each of this Agreement, during the
    term of this Agreement and upon expira
    tion of this Agreement as set forth in
    Paragraph 8, the USAO NDIL shall not further pursue investigations relating to
    the matters set forth in the Factual Statem
    ent that have been, or could have been,
    conducted by the USAO NDIL prior to th
    e date of this Agreement as to GROEB
    FARMS.
    Court Not Bound
    10.
    GROEB FARMS and the USAO NDIL understand that the Agreement
    to defer prosecution of GROEB FARMS must be approved by the Court, in
    accordance with Title 18, United States Code, Section 3161(h)(2). Should the Court
    decline to approve this Agreement for any reason, both the USAO NDIL and
    GROEB FARMS are released from any ob
    ligation imposed upon them by this
    Agreement and this Agreement shall be null and void.
    4
    Waiver of Rights
    11.
    GROEB FARMS agrees to waive and hereby expressly waives all rights
    to a speedy trial pursuant to the Si
    xth Amendment of the United States
    Constitution, Title 18, United States Co
    de, Section 3161, Federal Rule of Criminal
    Procedure 48(b), and any applic
    able Local Rules of the United States District Court
    for the Northern District if Illinois for the period that this Agreement is in effect.
    12.
    In case of a material breach of this Agreement, any prosecution of
    GROEB FARMS relating to the informatio
    n and facts contained in the Factual
    Statement or any crime arising therefrom th
    at is not time-barred by the applicable
    statute of limitations as of the date of
    this Agreement, may be commenced against
    GROEB FARMS notwithstanding the expi
    ration of any applicable statute of
    limitations during the deferred prosecution period and up to the determination of
    any material breach and for one year ther
    eafter. Thus, by signing this Agreement,
    GROEB FARMS agrees that the statute of limitations with respect to any related
    prosecution that is not time-barred on th
    e date of the signing of this Agreement
    shall be tolled for the period of this
    Agreement plus one year. GROEB FARMS'
    waiver of the statute of limitations
    is knowing and voluntary and in express
    reliance on the advice of counsel. Up
    on the successful completion of this
    Agreement, all applicable statutes of limitations shall be in effect.
    Breach of this Agreement
    13.
    Should the USAO NDIL determine that GROEB FARMS has
    committed a material breach of any prov
    ision of this Agreement, the USAO NDIL
    shall provide written notice to GROEB F
    ARMS of the alleged breach, and provide
    GROEB FARMS with a thirty day (30) period
    , or longer at the reasonable discretion
    of the USAO NDIL, in which to make a presentation to the USAO NDIL, to
    demonstrate that no material breach has o
    ccurred, or, to the extent applicable, has
    been cured. The parties expressly understand and agree that should GROEB
    FARMS fail to request an opportunity to present facts in mitigation within a
    two-week period of the potential breach, it shall be conclusively presumed that
    GROEB FARMS is in material breach of this Agreement. The parties further
    understand and agree that the USAO NDIL's exercise of discretion under this
    Paragraph is not subject to review in
    any court or tribunal outside of the
    Department of Justice. In the event of
    a material breach of this Agreement that
    results in a prosecution of GROEB FARMS, such prosecution may be premised upon
    any information of which law enforcement
    is aware as well as any information
    provided by or on behalf of GROEB FARMS to the USAO NDIL or any other
    government agency. As set forth in Paragraph 2 of this Agreement, GROEB
    5
    FARMS shall not contest or otherwise cha
    llenge the admissibility into evidence of
    the Factual Statement, the facts contained within the Factual Statement, or any
    other document, testimony, or other evid
    ence the USAO NDIL might use in any
    criminal prosecution against GROEB FARMS
    in the event of a material breach of
    this Agreement.
    Requirement to Obey the Law
    14.
    Should the USAO NDIL determine du
    ring the term of this Agreement
    that GROEB FARMS has committed any fe
    deral crime commenced subsequent to
    the date of this Agreement, GROEB FARMS shall, in the sole discretion of the
    USAO NDIL, thereafter be subject to pr
    osecution for any federal crimes of which
    the USAO NDIL has knowledge, including but not limited to the conduct described
    in the Factual Statement.
    Public Statements
    15.
    GROEB FARMS expressly agrees that
    it shall not, through its present
    or future attorneys, board of directors,
    agents, officers, executives, or employees,
    make any public statement contradicting
    any statement of fact contained in the
    Factual Statement. Any such contradictory public statement by GROEB FARMS,
    its attorneys, board of directors, agents, officers, executives, or employees shall
    constitute a material breach of this Agr
    eement as governed by Paragraph 13 of this
    Agreement, and GROEB FARMS shall thereafter be subject to prosecution
    pursuant to the terms of this Agreement.
    16.
    The decision of whether any statem
    ent subject to Paragraph 15 of this
    Agreement contradicts a fact contained in the Factual Statement and should be
    imputed to GROEB FARMS for purposes of determining whether GROEB FARMS
    has breached this Agreement shall be in
    the sole and reasonable discretion of the
    USAO NDIL. Upon the government's noti
    fication to GROEB FARMS of a public
    statement by any such person that in whole or in part contradicts a statement of
    fact contained in the Factual Statemen
    t, GROEB FARMS may avoid a breach of
    this Agreement by publicly repudiating
    such statement within two business days
    after notification by the government. Th
    is Paragraph is not intended to apply to
    any statement made by any individual in
    the course of any criminal, regulatory, or
    civil case initiated by a governmental or
    private party against such individual.
    In
    addition, consistent with GROEB FARMS' obligation not to contradict any
    statement of fact set forth in the Factual Statement, GROEB FARMS may take
    good faith positions in litigation involving
    any person or entity not a party to this
    Agreement. Nothing stated in this Agreement is intended to operate or shall
    operate as a waiver of GR
    OEB FARMS' rights under Federal Rule of Evidence 408.
    6
    Additional Terms
    17.
    GROEB FARMS agrees that, if
    GROEB FARMS' business operations
    are sold to a party or parties affiliated or unaffiliated with GROEB FARMS as of
    the date of this Agreement, whether by sale
    of stock, merger, consolidation, sale of
    a significant portion of its assets, or other form of business combination, or
    otherwise undergoes a direct or indirect change of control during the term of this
    Agreement, GROEB FARMS shall include in any such contract or instrument a
    provision binding the purchaser/successor to
    all the obligations described in this
    Agreement.
    18.
    It is further understood that this Agreement is binding on GROEB
    FARMS and the USAO NDIL, but specifica
    lly does not bind any other federal
    agencies, or any state or local authoritie
    s, although the USAO NDIL will bring the
    cooperation of GROEB FARMS and its comp
    liance with its other obligations under
    this Agreement to the attention of federal, state, or local prosecuting offices or
    regulatory agencies, if requested by GROEB FARMS or its attorneys. It is
    understood that this Agreement also excludes
    any natural persons. It is the intent
    of the parties to this Agreement that the
    Agreement does not confer or provide any
    benefits, privileges or rights to any indi
    viduals or other entities other than the
    parties hereto, and that nothing in th
    e Agreement shall be admissible in any
    proceeding other than a proceeding brought by the USAO NDIL. Moreover,
    GROEB FARMS may raise defenses and/or assert affirmative claims in any civil
    proceedings brought by private parties as
    long as doing so does not otherwise
    violate any term of this Agreement.
    19.
    It is further understood that this
    Agreement does not relate to or cover
    any criminal conduct by GROEB FARMS othe
    r than the conduct described in the
    Factual Statement.
    20.
    GROEB FARMS and the USAO NDIL agree that, upon acceptance by
    the Court, this Agreement and an Order deferring prosecution shall be publicly filed
    in the United States Distri
    ct Court for the Northern Di
    strict of Illinois, Eastern
    Division.
    21.
    This Agreement sets forth all the terms of the Deferred Prosecution
    Agreement between GROEB FARMS and the USAO NDIL. No modifications or
    additions to this Agreement shall be valid
    unless they are in writing and signed by
    the USAO NDIL, GROEB FARMS' attorneys, and a duly authorized GROEB
    FARMS' representative.
    7
    ________________________
    __________________________________
    ________________________
    __________________________________
    __________________________________
    22.
    GROEB
    FARMS
    and
    its attorneys acknowledge that no threats,
    promises,
    or
    representations
    have
    been
    made,
    nor
    agreements
    reached,
    other
    than
    those
    set
    forth
    in
    this
    Agreement
    to
    ca
    use GROEB FARMS to enter into this
    Agreement.
    AGREED
    :
    FOR GROEB FARMS, INC.
    DATE
    ROLF B. RICHTER
    Chief Executive Officer
    Duly Authorized Representative
    GROEB FARMS, INC.
    FOR THE UNITED STATES ATTORNEY'S OFFICE FOR THE
    NORTHERN DISTRICT OF ILLINOIS
    DATE
    GARY S. SHAPIRO
    United States Attorney
    Northern District of Illinois
    ANDREW S. BOUTROS
    Assistant United States Attorney
    8
    ________________________
    __________________________________
    CERTIFICATE OF CORPORATE RESOLUTIONS
    The undersigned Secretary of GROEB FARMS, INC., a Michigan corporation,
    hereby certifies that the following resolu
    tions were duly enacted by the Board of
    Directors of GROEB FARMS on February 8, 2013, and that such resolutions remain
    in full force and effect:
    WHEREAS, GROEB FARMS has been engage
    d in discussions with the United
    States Attorney's Office for th
    e Northern District of Illinois to resolve criminal liability
    relating to its honey-related businesses; and
    WHEREAS, in order to resolve such discu
    ssions, it is proposed that GROEB
    FARMS enter into a deferred prosecution agr
    eement with the United States Attorney's
    Office for the Northern District of Illinois; and
    WHEREAS outside counsel for GROEB FARMS has advised the Board of
    Directors of GROEB FARMS' rights, possi
    ble defenses, and the consequences of
    entering into such agreement with the United States Attorney's Office for the Northern
    District of Illinois;
    Therefore, this Board hereby RESOLVES that:
    1.
    GROEB FARMS agrees and consents
    to the entry of the Deferred
    Prosecution Agreement with the United States Attorney's Office for the Northern
    District of Illinois;
    2.
    Outside counsel and GROEB FARMS' President and Chief Executive
    Officer are hereby authorized, empowered
    and directed, on behalf of GROEB FARMS,
    to execute the Deferred Prosecution Agreemen
    t substantially in such form as reviewed
    by this Board of Directors at this meeting with such changes as outside counsel may
    approve; and
    3.
    Outside counsel and GROEB FARMS'
    President and Chief Executive
    Officer are authorized, empowered and direct
    ed to take any and all actions as may be
    necessary or appropriate, and to approve
    the forms, terms, or provisions of any
    agreement or other documents as may be ne
    cessary or appropriate to carry out and
    effectuate the purpose and intent of the foregoing resolutions.
    DATE GEORGE
    CAWMAN
    Chairman of the Board of Directors
    GROEB FARMS, INC.
    9
    ________________________
    ________________
    ___________________
    OFFICER'S CERTIFICATE
    I, ROLF B. RICHTER, the duly authorized representative of GROEB
    FARMS, INC., hereby expressly acknowledge the following: (1) I have the authority
    to sign this Deferred Prosecution Agreement;
    (2) I have read this entire Agreement;
    (3)
    I have had an opportunity to disc
    uss this Agreement fully and freely with
    GROEB FARMS' attorneys; (4) GROEB FARMS fully and completely understands
    each and every one of its terms and th
    e Agreement's consequences; (5) GROEB
    FARMS is fully satisfied with the advice an
    d representation provided to it by its
    attorneys; and (6) GROEB FARMS has signed this Agreement voluntarily.
    DATE
    ROLF B. RICHTER
    Chief Executive Officer
    GROEB FARMS, INC.
    10
    ________________________
    __________________________
    _________
    COUNSEL'S CERTIFICATE
    The undersigned are outside counsel for GROEB FARMS, INC. In connection
    with such representation, I acknowledge
    that I: (1) discussed this Deferred
    Prosecution Agreement with my client, GROEB FARMS; (2) fully explained each
    one of its terms to GROEB FARMS; (3) fully
    answered each and every question put
    to me by GROEB FARMS regarding this Agreement; and (4) believe GROEB
    FARMS completely understands all of this
    Agreement's terms and its consequences.
    FOLEY & LARDNER LLP
    DATE
    Lisa
    Noller
    Counsel for GROEB FARMS, INC.
    11
    Exhibit A
    FACTUAL STATEMENT
    GROEB FARMS, INC. admits and agrees to the following facts and that
    those facts establish its guilt beyond a reasonable doubt and constitute relevant
    conduct pursuant to Guideline §1B1.3:
    On or about January 25, 2010, in the
    Northern District of Illinois, Easter
    n Division and elsewhere, GROEB FARMS,
    together with Executive A and Executive
    B, as part of a fr
    audulent practice,
    received and bought merchandise, namely, twenty-two container loads of
    Chinese-origin honey with a contract va
    lue of $882,178, knowing the same to have
    been imported and brought into the United
    States contrary to law, namely, as part
    of a fraudulent practice in violation of
    Title 18, United States Code, Section 542, in
    that the honey was falsely and fraudulent
    ly imported and brought into the United
    States described as Chinese honey syrup,
    some of which was transported through
    the Northern District of Illinois and late
    r delivered into the
    Northern District of
    Illinois as finished product, in violation of Title 18, United States Code, Sections
    545 and 2. More specifically,
    1.
    GROEB FARMS, INC., was the larg
    est industrial honey supplier and
    packer in the United States, with its principal place of business in Onsted,
    Michigan and other processing and packin
    g facilities, namely, Belleview, Florida;
    Colton, California; San Bernardino, California since December 2012; and from
    January through September 2011, Baytown,
    Texas. GROEB FARMS processed and
    sold honey to retail, foodservice, and in
    dustrial customers. In about March 2007,
    outside investors purchased a majority in
    terest in GROEB FARMS and constituted
    a new Board of Directors with oversight functions.
    2.
    Executive A was a senior GROEB FARMS executive, who reported
    directly to GROEB FARMS' Board of Directors and exercised control, authority,
    responsibility, and supervision over GRO
    EB FARMS, including its operations and
    executive management team. Executive A
    served as management's primary point
    of contact to the Board of Directors and communicated directly to the Board,
    GROEB FARMS' customers, and the public regarding GROEB FARMS' polices,
    positions, and practices on food safe
    ty and illegally transshipped and illegally
    misdeclared honey.
    3.
    Executive B was a senior GROEB FARMS executive who reported
    directly to Executive A an
    d exercised control, authority, responsibility, and
    supervision over purchasing honey on behalf of GROEB FARMS.
    1
    4.
    At times material to this Agreement, Executive A and Executive B
    were acting within the scope of their em
    ployment, with intent to benefit GROEB
    FARMS, and in the course of the discharge of their duties.
    5.
    Beginning no later than February 2008 and continuing until about
    April 2012, GROEB FARMS, as pa
    rt of a fraudulent practice, received, bought, sold,
    and facilitated the transportation, concea
    lment, and sale of merchandise, namely,
    at least approximately 1,578 container load
    s of Chinese-origin honey knowing the
    same to have been imported and brought
    into the United States contrary to law,
    namely, as part of a fraudulent practice in
    violation of Title 18, United States Code,
    Section 542, all in violation of Title 18, United States Code, Section 545.
    6.
    As part of the fraudulent practice, GROEB FARMS, acting through
    Executive A and Executive B, purchased Chinese-origin honey for processing at its
    facilities and sold that honey to its domestic customers as mislabeled non-Chinese
    honey, and at other times as Chinese hone
    y, all while knowing that the honey had
    been falsely and fraudulently imported
    and entered into the United States in
    avoidance of U.S.-imposed antidumping duti
    es and at times, honey assessment fees,
    including in the following means:
    a.
    falsely and fraudulently declarin
    g Chinese-origin honey as having
    originated from countries other than China, including Indonesia,
    Malaysia, Mongolia, Thailand, and Vietnam; and
    b.
    falsely and fraudulently describing
    Chinese-origin honey as a product
    other than honey, including sugars and syrups.
    7.
    Beginning in or about 2008 and continuing through in or about 2012,
    GROEB FARMS instituted first-party onsi
    te supply chain audits and inspections
    of manufacturers and suppliers. As part of
    the fraudulent practice, Executive A and
    Executive B:
    a.
    continued to deliberately purchase honey from U.S.-based brokers
    receiving honey from Asian suppliers,
    including Suppliers 1, 2, 3, and
    4, even after the audits raised subs
    tantial concerns that these overseas
    suppliers were providing GROEB
    FARMS with illegally transshipped
    and misdeclared Chinese-origin honey;
    b.
    continued to deliberately purchase honey from another U.S.-based
    broker receiving honey from anothe
    r Asian supplier, Supplier 5, even
    2
    Exhibit B
    CORPORATE COMPLIANCE PROGRAM
    Goods shipped from a country of origin to a country of intermediate
    destination, mislabeled as to country of
    origin, and that ultimately pass through a
    customhouse at the port of final destination and enter into the United States as a
    misdeclared product, are considered
    illegally "transshipped."
    Specifically,
    Chinese-origin honey imported into the Un
    ited States through third countries and
    mislabeled and declared as originat
    ing from a third country is illegally
    "transshipped." Chinese-origin honey impo
    rted and entered into the United States
    as originating from a country other than China, even if not transshipped, is
    considered an illegally misdeclared produc
    t. Similarly, Chinese-origin honey
    imported and entered into the United States as a product other than honey,
    including, for example, molasses, fructose
    , rice syrup, glucose syrup, honey syrup,
    and apple juice concentrate is also consider
    ed an illegally misdeclared product.
    The
    United States assesses antidumping duties on Chinese-origin honey and honey
    assessment fees on all honey. Illegally
    transshipped, mislabeled, and misdeclared
    Chinese-origin honey can avoid these duti
    es and fees, in violation of U.S. law.
    Furthermore, illegally transshipped, mislabeled, and misdeclared honey can create
    a two-tier pricing structure for honey:
    higher prices for buyers and sellers
    unwilling to transact in transshipped, mislabeled, and misdeclared honey and
    cheaper prices for those willing to do so or who are otherwise indifferent.
    The Food, Drug, and Cosmetic Act ("FDCA") and Food Safety Modernization
    Act ("FSMA") are designed to ensure that
    foods are safe, wholesome, sanitary, and
    properly labeled.
    The purpose of this Corporate Complianc
    e Program is to ensure that GROEB
    FARMS, INC. maintains supply chain integrity and conducts reasonable, good-faith
    country-of-origin inquiries reasonably desi
    gned to ensure that GROEB FARMS is
    able to track and trace its domestic and imported products, as well as avoid
    transacting in illegally transshipped, illegally misdeclared, and unsafe or
    unwholesome products, including honey.
    To prevent and address deficiencies in its policies and procedures regarding
    full compliance with U.S. importation and customs laws, the FDCA and FSMA, and
    other federal laws relating to honey and other products (collectively, the
    "traceability and food laws"), GROEB FARMS
    agrees to continue to conduct, in a
    manner consistent with all of its obligat
    ions under this Agreement, appropriate
    reviews of its internal controls, existing policies, and procedures.
    1
    Where necessary and appropriate, GR
    OEB FARMS agrees to adopt new or
    to modify existing policies and procedures to ensure that it maintains a rigorous
    compliance code, standards, and procedures
    designed to detect and deter violations
    of the traceability and food
    laws. At a minimum, this
    should include, but not be
    limited to, the following elements to the ex
    tent they are not already part of GROEB
    FARMS' existing policies and procedures:
    1.
    A clearly articulated corporate policy, adopted by formal resolution of
    GROEB FARMS' Board of Directors, agains
    t violations of the traceability and food
    laws. Among other things, the corporate policy shall make clear that it is a federal
    crime for anyone to fraudulently or kn
    owingly import or bring into the United
    States, any merchandise contrary to law
    (including U.S. importation and customs
    laws, the FDCA and FSMA), or receive,
    conceal, buy, sell, or in any manner
    facilitate the transportation, concealment, or sale of such merchandise after
    importation, knowing the same to have b
    een imported or brought into the United
    States contrary to law.
    2.
    Promulgation of compliance stan
    dards and procedures designed to
    reduce the prospect of vi
    olations of the traceabilit
    y and food laws and GROEB
    FARMS' compliance code and appropriate
    measures to encourage and support the
    observance of ethics and compliance stan
    dards and procedures against traceability
    violations at all levels of
    the company. These standards and procedures shall apply
    to all directors, officers, executiv
    es, and employees, and where necessary,
    appropriate, and practical, outside parties
    acting on behalf of or for the benefit of
    GROEB FARMS, including, but not lim
    ited to, agents, brokers, traders,
    representatives, manufacturers, producer
    s, processors, distributors, teaming
    partners, joint venture partners, and others
    (collectively, "agents, brokers, and
    others").
    3.
    Development of these compliance st
    andards and procedures, including
    ethics and compliance programs on the basis of a risk assessment addressing the
    individual circumstances of each honey pu
    rchasing transaction, including, but not
    limited to: (a) market conditions at the
    time of the transaction, as well as (b)
    reasonable country-of-origin and supply chain
    inquiries, including a review of the
    honey's:
    (i)
    paperwork, markings, and labe
    ls, or lack, incompleteness, or
    tampering thereof;
    (ii)
    verified container numbers;
    (iii)
    drum conditions and color;
    (iv)
    price;
    (v)
    volume;
    2
    (vi)
    sales condition, including spot buy versus long-term contract;
    (vii)
    claimed country of origin, incl
    uding the honey production outputs
    of the claimed country, whether the claimed origin has been used as a
    transshipping route, and whether the country
    is a historic net consumer or exporter
    of its honey;
    (viii)
    seller, agent, or broker an
    d each's track record and business
    practices, including use of affiliates or
    third parties to import into the United
    States, a higher risk practice than directly serving as the importer of record;
    (ix)
    claimed manufacturer, factory, producer, or processor and the good-
    faith due diligence and supply chain audits
    conducted thereof, if any, including the
    willingness and extent of access granted for the audits; thoroughness, scope, and
    frequency of the audits; and the training,
    expertise, and credibility of the auditor;
    and
    (x)
    claimed importer of record and any information or background
    relating to the same.
    4.
    Periodic review of its complianc
    e standards and procedures, including
    ethics and compliance programs, taking into
    account relevant developments in the
    field and evolving industry standards, an
    d update and adapt as necessary to ensure
    the continued effectiveness of the company's ethics and compliance programs in
    detecting and reducing violations of the traceability and food laws and GROEB
    FARMS' compliance code.
    5.
    Mechanisms designed to ensu
    re that GROEB FARMS' policies,
    standards, and procedures regarding the tr
    aceability and food laws are effectively
    communicated to all directors, officers, executives, and employees, and where
    necessary, appropriate, and practical, agents, brokers, and others. These
    mechanisms shall include: (a) periodic trai
    ning for all directors, officers, executives,
    and employees, and where necessary, approp
    riate, and practical, agents, brokers,
    and others; and (b) annual certifications by
    all such directors, officers, executives,
    and employees, and where necessary, approp
    riate, and practical, agents, brokers,
    and others, certifying compliance with the training requirements.
    6.
    An effective system for receiving, reporting, handling, and addressing
    suspected criminal conduct and/or violatio
    ns of the compliance policies, standards,
    and procedures regarding the traceability
    and food laws for directors, officers,
    executives, and employees, and where necessary, appropriate, and practical, agents,
    brokers, and others, as to known complaints
    that arise internally and externally of
    the company.
    7.
    Appropriate disciplinary procedures
    to address, among other things,
    3
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    At-a-glance

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    Overview of BBB Rating

    Products & Services

    This Company supplies honey to foodservice and industrial customers nationwide.

    Business Details

    Location of This Business
    10464 Bryan Hwy., Onsted, MI 49265
    BBB File Opened:
    9/29/2003
    Years in Business:
    51
    Business Started:
    1/1/1973
    Business Started Locally:
    1/1/1984
    Business Incorporated:
    1/1/1984
    Type of Entity:
    Corporation
    Number of Employees:
    78
    Contact Information

    Principal

    • Mr. Ernie Groeb Jr., President/CEO

    Customer Contact

    • Mr. Ernie Groeb Jr., President/CEO
    • Mr. Ernie Groeb Sr., President
    • Mr. Troy Groeb, Vice President
    Additional Contact Information

    Fax Numbers

    • (517) 467-2840
      Primary Fax

    Phone Numbers

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