Common use of Performance Securities Clause in Contracts

Performance Securities. A 10% holdback will be made on the total cost of the contract. The Holdback will be released at the written request of the Contractor and with the satisfaction of the Company that: - Quality of the work meets the Company’s Standards. - All unused cones, stakes and planting materials are cached back at Juskatla grade shed - All planting garbage is disposed of at a Company agreed to disposal site. - No garbage or equipment of the Contractor’s is left on site. - Contractor has completed and submitted all CMS reports and forms to the Company. Taan Forest is not obliged to advance the Contractor more than 90% of the calculated amount of any payment. The 10% holdback shall be retained for forty calendar days after the completion, or earlier termination, of all work and interest is not payable on the amount held back by Taan Forest. Taan Forest is authorized, but not obliged to apply the holdback funds as follows: • To the Contractor’s and Subcontractor’s unpaid workers, Subcontractors and materials suppliers; and • As security for the correction and/or clean-up of any breach of, or for payment of any Assessment provided for in, this Agreement. If the Contractor fails to perform or comply with this agreement, the Company may, in addition to terminating the Agreement and claiming the Performance Security, pursue any other remedies available to it under this Agreement or the laws of British Columbia. Liquidated Damages In addition to deductions as described under part 5 of General Terms and Conditions the contractor is subject to penalties and fines for non-conformances to Taan’s Corporate Management System, Safety non- conformances and production incidents. Serious non-conformances are subject to part 14 of General Terms and Conditions. Where part 14 is not enacted serious non-conformances can be up to $500.00 per occurrence, applied against the contract and removed from the security deposit or holdback. Contractor minor non-conformances are subject to $100.00 fines per occurrence and will be applied against the contract and removed from the security deposit or holdback. Where Xxxx has received a fine from Government agencies and that fine is deemed to be the contractor’s responsibility or the result of the contractor’s action or inaction the fine will be transferred to the Contractor in addition to the penalties listed above.

Performance Securities. A 10% holdback will be made on the total cost of the contract. The Holdback will be released at the written request of the Contractor and with the satisfaction of the Company that: - Quality of the work meets the Company’s Standards. - All unused cones, stakes and planting materials are cached back at Juskatla grade shed - All planting garbage is disposed of at a Company agreed to disposal site. - No garbage or equipment of the Contractor’s is left on site. - Contractor has completed and submitted all CMS reports and forms to the Company. Taan Forest is not obliged to advance the Contractor more than 90% of the calculated amount of any payment. The 10% holdback shall be retained for forty calendar days after the completion, or earlier termination, of all work and interest is not payable on the amount held back by Taan Forest. Taan Forest is authorized, but not obliged to apply the holdback funds as follows: • To the Contractor’s and Subcontractor’s unpaid workers, Subcontractors and materials suppliers; and • As security for the correction and/or clean-up of any breach of, or for payment of any Assessment provided for in, this Agreement. If the Contractor fails to perform or comply with this agreement, the Company may, in addition to terminating the Agreement and claiming the Performance Security, pursue any other remedies available to it under this Agreement or the laws of British Columbia. Liquidated Damages In addition to deductions as described under part 5 of General Terms and Conditions the contractor is subject to penalties and fines for non-conformances to Taan’s Corporate Management System, Safety non- conformances and production incidents. Serious non-conformances are subject to part 14 of General Terms and Conditions. Where part 14 is not enacted serious non-conformances can be up to $500.00 per occurrence, applied against the contract and removed from the security deposit or holdback. Contractor minor non-conformances are subject to $100.00 fines per occurrence and will be applied against the contract and removed from the security deposit or holdback. Where Xxxx Taan has received a fine from Government agencies and that fine is deemed to be the contractor’s responsibility or the result of the contractor’s action or inaction the fine will be transferred to the Contractor in addition to the penalties listed above.

Performance Securities. A 10% holdback will be made on the total cost of the contract. The Holdback will be released at the written request of the Contractor and with the satisfaction of the Company that: - Quality of the work meets the Company’s Standards. - All unused cones, stakes and planting materials are cached back at Juskatla grade shed - All planting garbage is disposed of at a Company agreed to disposal site. - No garbage or equipment of the Contractor’s is left on site. - Contractor has completed and submitted all CMS reports and forms to the Company. Taan Forest is not obliged to advance the Contractor more than 90% of the calculated amount of any payment. The 10% holdback shall be retained for forty calendar days after the completion, or earlier termination, of all work and interest is not payable on the amount held back by Taan Forest. Taan Forest is authorized, but not obliged to apply the holdback funds as follows: •  To the Contractor’s and Subcontractor’s unpaid workers, Subcontractors and materials suppliers; and •  As security for the correction and/or clean-up of any breach of, or for payment of any Assessment provided for in, this Agreement. If the Contractor fails to perform or comply with this agreement, the Company may, in addition to terminating the Agreement and claiming the Performance Security, pursue any other remedies available to it under this Agreement or the laws of British Columbia. Liquidated Damages In addition to deductions as described under part 5 of General Terms and Conditions the contractor is subject to penalties and fines for non-conformances to Taan’s Corporate Management System, Safety non- conformances and production incidents. Serious non-conformances are subject to part 14 of General Terms and Conditions. Where part 14 is not enacted serious non-conformances can be up to $500.00 per occurrence, applied against the contract and removed from the security deposit or holdback. Contractor minor non-conformances are subject to $100.00 fines per occurrence and will be applied against the contract and removed from the security deposit or holdback. Where Xxxx Taan has received a fine from Government agencies and that fine is deemed to be the contractor’s responsibility or the result of the contractor’s action or inaction the fine will be transferred to the Contractor in addition to the penalties listed above.