Common use of Payment of Indemnity Clause in Contracts

Payment of Indemnity. a) An indemnity shall be paid for damaged vines due to insurable perils less the deductible equal to 5% or 10% of the number of insured vines. b) An indemnity will be paid at the insured value for the damaged vines beyond the 5% or 10% deductible after the vines have been removed. Insurable Crop Group All Grapes Insurable Crop Grapes December 1 to November 30 Crop Year November 30 Application deadline Year prior to harvest and must insure grape vines Required deposit due 15% as per Section 13(4) regs Signed Agreement Required for valid contract; Section 13(1) regs Perils insured against See Section 8 regs Approved Varieties: Varieties recommended by the Department or the Corporation. Yield coverage Yields adjusted by Yield Coverage Adjustment as stated below. Coverage levels 70% and 80%* of the probable yield Coverage Period Begins when the crop is insured Ends with the final date for harvest June 30 Premium due date As per Section 13(11) regs July 01 Interest charges begin Monthly interest charged on unpaid premiums; as per Section 13(12) regs Stage I indemnity rate (30 days after planting) Section 23 regs Does NOT apply to this crop Stage II indemnity rate (un-harvested ac.) FULL OFFSET – between Stage II and Stage III Section 24 regs Does NOT apply to this crop Stage III indemnity rate (harvested crop) Section 25 regs Maximum indemnity rate is equal to the shortfall in production at the unit price selected.

Payment of Indemnity. a) An indemnity a. Indemnity shall be paid for damaged vines trees due to insurable perils less the deductible equal to 5% or 103% of the number of insured vinestrees. b) An indemnity b. Indemnity will be paid at the insured value for the damaged vines trees beyond the 5% or 103% deductible after the vines trees have been removed. Insurable Crop Group All Grapes Apples Insurable Crop Grapes Apples December 1 to November 30 Crop Year November 30 Application deadline Year prior to harvest and must insure grape vines apple trees Required deposit due 15% as per Section 13(4) regs Signed Agreement Required for valid contract; Section 13(1) regs Perils insured against See Section 8 regs Approved Varieties: Varieties recommended by the Department or the Corporation. Yield coverage Yields adjusted by Yield Coverage Adjustment as stated below. Coverage levels 70% and , *80%* , or *90% of the probable yield Coverage Period Begins when the crop is insured Ends with the final date for harvest June 30 Premium due date As per Section 13(11) regs July 01 Interest charges begin Monthly interest charged on unpaid premiums; as per Section 13(12) regs Stage I indemnity rate (30 days after planting) Section 23 regs Does NOT apply to this crop Stage II indemnity rate (un-harvested ac.) FULL OFFSET – between Stage II and Stage III Section 24 regs Does NOT apply to this crop Stage III indemnity rate (harvested crop) Section 25 regs Maximum indemnity rate is equal to the shortfall in production at the unit price selected.

Payment of Indemnity. a) An indemnity a. Indemnity shall be paid for damaged vines trees due to insurable perils less the deductible equal to 5% or 103% of the number of insured vinestrees. b) An indemnity b. Indemnity will be paid at the insured value for the damaged vines trees beyond the 5% or 103% deductible after the vines trees have been removed. Insurable Crop Group All Grapes Blueberries Insurable Crop Grapes Highbush blueberries December 1 to November 30 Crop Year November 30 Application deadline Year prior to harvest and must insure grape vines Required deposit due 15% as per Section 13(4) regs Signed Agreement Required for valid contract; Section 13(1) regs Perils insured against See Section 8 regs regs, plus winter injury, bird damage and unavoidable pollination failure. Seed Quality Standards Acceptable highbush varieties Approved Varieties: Varieties recommended by the Department or the Corporation. Acceptable highbush varieties Yield Coverage - PY Yield coverage Yields to be adjusted by Yield according to maturity of blueberry stands. as per Coverage Adjustment as stated Adjustments listed below. Coverage levels 70% and %, 80%* , or 90% of the probable yield Coverage Period Begins when the crop is insured Ends with the final date for harvest November 30 Final Acreage Report Completed at time of Application List of crops by field and stage of development Penalty - $10 plus $2 for each day overdue Section 18(4) regs June 30 Premium due date As per Section 13(11) regs July 01 Interest charges begin Monthly interest charged on unpaid premiums; as per Section 13(12) regs Stage I indemnity rate (30 days after planting) Section 23 regs Does NOT apply to this Perennial crop – NO Stage I coverage. Stage II indemnity rate (un-harvested ac.) FULL OFFSET – between Stage II and Stage III Section 24 regs Does NOT Since Stage I does not apply to this crop perennial crop, the Stage II indemnity on un-harvested acres is 50% of the insured value if losses occur before June 01 of the harvest year and 65% if losses occur after June 01. Stage III indemnity rate (harvested crop) Section 25 regs Maximum indemnity rate is equal to the shortfall in production at the unit price selectedselected September 25 Final date for harvest; subsequent field losses are not covered September 25 Final date for coverage Section 9 regs November 30 Final date to submit a Production Summary Section 15 regs November 30 Final date for filing a Proof of Loss, in writing Section 20 regs December 30 Final date to appeal a change to the Production Summary or Proof of Loss 1) Production to Count means all saleable production sold to a processor or commercial packing house, all sales to wholesalers or retailers, farm gate sales and all stored inventory. a. The insured’s production will be adjusted by the Corporation based on records and delivery receipts from all sources. b. The Corporation reserves the right to adjust the final production to count for insurable and non-insurable perils. 2) For Highbush Blueberries the following yield coverage adjustments shall be used: Condition Adjustment Factor First Harvest .15 Second Harvest .25 Third Harvest .50 3) High xxxx blueberry plants must have overwintered at least one winter before being eligible for insurance. For the first year highbush blueberries are insured, the Probable Yield shall be that of wild lowbush blueberries and acres shall be adjusted based on the adjustment factor equivalent to the number of harvests for wild lowbush blueberries. 4) Wild lowbush and highbush blueberries will be insured separately from each other with no offsetting between the crops. 5) Since Stage I does not apply to this perennial crop, the Stage II indemnity on un- harvested acres is: a) 50% of the insured value; if losses occur before June 1st of the harvest year; and

Payment of Indemnity. a) An indemnity a. Indemnity shall be paid for damaged vines trees due to insurable perils less the deductible equal to 5% or 103% of the number of insured vinestrees. b) An indemnity b. Indemnity will be paid at the insured value for the damaged vines trees beyond the 5% or 103% deductible after the vines trees have been removed. Insurable Crop Group All Grapes Blueberries Insurable Crop Grapes Highbush blueberries December 1 to November 30 Crop Year November 30 Application deadline Year prior to harvest and must insure grape vines Required deposit due 15% as per Section 13(4) regs Signed Agreement Required for valid contract; Section 13(1) regs Perils insured against See Section 8 regs regs, plus winter injury, bird damage and unavoidable pollination failure. Seed Quality Standards Acceptable highbush varieties Approved Varieties: Varieties recommended by the Department or the Corporation. Acceptable highbush varieties Yield Coverage - PY Yield coverage Yields to be adjusted by Yield according to maturity of blueberry stands. as per Coverage Adjustment as stated Adjustments listed below. Coverage levels 70% and %, 80%* , or 90% of the probable yield Coverage Period Begins when the crop is insured Ends with the final date for harvest November 30 Final Acreage Report Completed at time of Application List of crops by field and stage of development Penalty - $10 plus $2 for each day overdue Section 18(4) regs June 30 Premium due date As per Section 13(11) regs July 01 Interest charges begin Monthly interest charged on unpaid premiums; as per Section 13(12) regs Stage I indemnity rate (30 days after planting) Section 23 regs Does NOT apply to this Perennial crop – NO Stage I coverage. Stage II indemnity rate (un-harvested ac.) FULL OFFSET – between Stage II and Stage III Section 24 regs Does NOT Since Stage I does not apply to this crop perennial crop, the Stage II indemnity on un-harvested acres is 50% of the insured value if losses occur before June 01 of the harvest year and 65% if losses occur after June 01. Stage III indemnity rate (harvested crop) Section 25 regs Maximum indemnity rate is equal to the shortfall in production at the unit price selectedselected September 25 Final date for harvest; subsequent field losses are not covered September 25 Final date for coverage Section 9 regs November 30 Final date to submit a Production Summary Section 15 regs November 30 Final date for filing a Proof of Loss, in writing Section 20 regs December 30 Final date to appeal a change to the Production Summary or Proof of Loss 1) Producers are required to insure their plants under the Highbush Blueberry Plant plan to be eligible for fruit coverage. 2) Production to Count means all saleable production sold to a processor or commercial packing house, all sales to wholesalers or retailers, farm gate sales and all stored inventory. a. The insured’s production will be adjusted by the Corporation based on records and delivery receipts from all sources. b. The Corporation reserves the right to adjust the final production to count for insurable and non-insurable perils. 3) For Highbush Blueberries the following yield coverage adjustments shall be used: Condition Adjustment Factor First Harvest .15 Second Harvest .25 Third Harvest .50

Payment of Indemnity. a) An indemnity shall be paid for damaged vines plants due to insurable perils less the deductible equal to 5% or 10% of the number of insured vines. b) An indemnity will be paid at the insured value for the damaged vines beyond the 5% or 10% deductible after the vines plants have been removed. Insurable Crop Group All Grapes Strawberries Insurable Crop Grapes Strawberries December 1 to November 30 Crop Year November 30 Application deadline Acres applied for are the acres intended for harvest the subsequent summer. Acres will consist of: Established - Year prior to harvest 1, Year 2 and must insure grape vines Year 3 production. Required deposit due 15% as per Section 13(4) regs Signed Agreement Required for valid contract; Section 13(1) regs Perils insured against See Section 8 regs Specific to the peril list defined herein. Approved Varieties: Varieties Varieties recommended by the Department or the Corporation. Yield coverage Yields adjusted by Yield Coverage Adjustment as stated below. Coverage levels 70% and 80%* of the probable yield Coverage Period Begins when the crop is insured Ends with the final date for harvest Corporation June 30 Premium due date As per Section 13(11) regs July 01 Interest charges begin Monthly interest charged on unpaid premiums; as As per Section 13(12) regs Stage I indemnity rate (December 15 Plants must be covered with straw for winter kill protection May 15 Straw to be removed to identify viable plants and winter kill June 5 Last day to assess the percentage of plants lost to winterkill June 30 days after plantingLast day to identify losses for blossom damage July 20 Final date for strawberry harvest; subsequent field losses are not covered July 20 Final date to submit Proof of Loss, in writing, for winter kill and blossom damage August 20 Final date to submit Proof of Loss, in writing, for production losses November 30 Final date to submit Proof of Loss, in writing, for acres destroyed for virus damage 1) The purpose of this plan is to provide insurance for strawberry plants damaged as a result of the following perils: a. winter injury or winter kill; b. ice or snow damage; c. late spring frost; d. virus infections; e. other perils as designated in Section 23 regs Does NOT 8 regs. 2) In addition to those criteria stated above, the following shall apply to this crop Stage II indemnity rate (un-harvested ac.all crops and acres insured under Schedule K Part 3 - Strawberries: a) FULL OFFSET – between Stage II and Stage III Section 24 regs Does NOT apply to this crop Stage III indemnity rate (harvested crop) Section 25 regs Maximum indemnity rate is equal For yield coverage in the insurance program the insured will not receive a provincial benchmark, but, must provide at least two consecutive years of yield information for the years immediately prior to the shortfall year in which insurance is being requested in, in order to establish a probable yield. b) For the purpose of this plan, Year 1 production at is the unit price selectedacreage planted during the summer of the year prior to harvest and represents an insurance period from December 1st in the establishment year to November 30th of the following year. Year 2 and 3 production is the subsequent years following Year 1. c) Actual planted acres of Year 1, 2, and 3 production shall be determined by the Corporation before the plants are covered, or by November 30th, by taking into consideration the number of healthy strawberry plants per acre. Acres will be adjusted using a standard of seven viable plants per 10-foot of row or 7,500 plants per acre. d) Year 1 or year 2 acres that are assessed with winter kill damage may be insured in subsequent years, but the acres shall be adjusted according to the winter kill damage recorded from the previous year.