Common use of Contributions and Withdrawals Clause in Contracts

Contributions and Withdrawals. 4.1 Each Participant shall, with respect to a Program Year: 4.1.1 no later than nine months before the end of the Program Year, notify the Administration of the Participant=s Elected Coverage Level for that Program Year; 4.1.2 no later than the deadline established in the Program Guidelines, provide the Administration with such information as the Administration may require to determine the Participant=s Reference Margin for that Program Year; 4.1.3 no later than the end of the Program Year, or such earlier date as is established in Program Guidelines, deposit into the Participant=s Fund 1 such amount as is necessary so that the Participant=s Fund 1 balance, at the end of the Program Year, is at least equal to (a) the Participant=s Maximum Triggered Fund 1 Withdrawal for that Program Year; or (b) such lesser amount as is required under clause 4.2; 4.1.4 no later than the deadline established in the Program Guidelines, report such information as the Administration requires in order to determine the Participant=s Production Margin for that Program Year. 4.2 The Fund 1 balance required under clause 4.1.3 shall be one-third of the Participant=s Maximum Triggered Fund 1 Withdrawal for the Program Year in the following circumstances: 4.2.1 for the 2003 and 2004 Program Years; 4.2.2 for the first two Program Years for a new Participant in the Program; or 4.2.3 where a Participant=s Margin Decline Ratio for at least one of the two previous Program Years was greater than 30 per cent, 4.3 Where the Program Year for a Participant does not end on December 31, the Administration may, subject to the Program Guidelines, modify the deadlines provided for in clause 4.1, for the purpose of ensuring that elections are made before events which can be expected to materially influence the Participant=s Production Margin for the Program Year. 4.4 A Participant shall take the steps set out in clause 4.1 according to procedures established by the Administration. If, subject to Program Guidelines, the Administration permits Participants to submit a statement of farming income and expenses prepared in accordance with Generally Accepted Accounting Principles, the statement must detail all income and expense information otherwise reportable for farm business income tax purposes and necessary for the calculation of entitlements for a Program Year (which shall be the calendar year or such other period as the Administration may permit). Participants who file in this manner must retain all source documents as would be required under the Income Tax Act such as sales invoices, purchase vouchers, bank records, ledgers and journals. 4.5 If a Participant fails to take any one of the steps set out in clause 4.1 with respect to a Program Year: 4.5.1 the Participant=s Maximum Triggered Fund 1 Withdrawal for that Program Year shall be zero; and 4.5.2 where the Participant is subject to clause 4.5.1 for two consecutive Program Years, the Participants Maximum Triggered Fund 1 Withdrawal for the following two Program Years shall be zero. 4.6 A Participant=s Maximum Triggered Fund 1 Withdrawal shall be calculated by adding the following amounts:

Contributions and Withdrawals. 4.1 Each Participant shall, with respect to a Program Year: 4.1.1 no later than nine months before the end of the Program Year, notify the Administration of the Participant=s ’s Elected Coverage Level for that Program Year; 4.1.2 no later than the deadline established in the Program Guidelines, provide the Administration with such information as the Administration may require to determine the Participant=s ’s Reference Margin for that Program Year; 4.1.3 no later than the end of the Program Year, or such earlier date as is established in Program Guidelines, deposit into the Participant=s ’s Fund 1 such amount as is necessary so that the Participant=s ’s Fund 1 balance, at the end of the Program Year, is at least equal to (a) the Participant=s ’s Maximum Triggered Fund 1 Withdrawal for that Program Year; or (b) such lesser amount as is required under clause 4.2; 4.1.4 no later than the deadline established in the Program Guidelines, report such information as the Administration requires in order to determine the Participant=s ’s Production Margin for that Program Year. 4.2 The Fund 1 balance required under clause 4.1.3 shall be one-third of the Participant=s ’s Maximum Triggered Fund 1 Withdrawal for the Program Year in the following circumstances: 4.2.1 for the 2003 and 2004 Program Years; 4.2.2 for the first two Program Years for a new Participant in the Program; or 4.2.3 where a Participant=s ’s Margin Decline Ratio for at least one of the two previous Program Years was greater than 30 per cent, 4.3 Where the Program Year for a Participant does not end on December 31, the Administration may, subject to the Program Guidelines, modify the deadlines provided for in clause 4.1, for the purpose of ensuring that elections are made before events which can be expected to materially influence the Participant=s ’s Production Margin for the Program Year. 4.4 A Participant shall take the steps set out in clause 4.1 according to procedures established by the Administration. If, subject to Program Guidelines, the Administration permits Participants to submit a statement of farming income and expenses prepared in accordance with Generally Accepted Accounting Principles, the statement must detail all income and expense information otherwise reportable for farm business income tax purposes and necessary for the calculation of entitlements for a Program Year (which shall be the calendar year or such other period as the Administration may permit). Participants who file in this manner must retain all source documents as would be required under the Income Tax Act such as sales invoices, purchase vouchers, bank records, ledgers and journals. 4.5 If a Participant fails to take any one of the steps set out in clause 4.1 with respect to a Program Year: 4.5.1 the Participant=s ’s Maximum Triggered Fund 1 Withdrawal for that Program Year shall be zero; and 4.5.2 where the Participant is subject to clause 4.5.1 for two consecutive Program Years, the Participants Maximum Triggered Fund 1 Withdrawal for the following two Program Years shall be zero. 4.6 A Participant=s ’s Maximum Triggered Fund 1 Withdrawal shall be calculated by adding the following amounts: