Commodity Loan Program. Application

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Commodity Loan Program

2014

Application

GRAINS, OILSEEDS, PROCESSING VEGETABLES, APPLES, GRAPES, AND TOBACCO

Applications must be postmarked by June 30, 2014

Please ensure all pages of the application are submitted as part of the application package

201-660 Speedvale Avenue West

Guelph, Ontario

N1K 1E5

Toll-Free: 1-888-278-8807

Fax: 1-519-766-1845

[email protected]

www.agcreditcorp.ca

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INFORMATION PAGE

Please read before completing this application

Loan Limits

• Producers can qualify for a maximum of $750,000

Deductions

• A $675 management fee will be deducted from the initial cheque issued (includes costs for applicable credit check(s), lien search(es), lien registration(s), and inspection charges)

• A refundable 2% holdback will be deducted from all loan cheques (interest will not be charged on holdback) • A non-refundable 0.4% ‘Producer Contingency Fee’ is deducted from all loan cheques, deposited to a contingency

pool of funds, and applied against uncollectable loans (interest will not be charged on holdback)

Interest Charges

• Interest Rate is a floating rate at Bank of Montreal Prime

Production

Insurance

• Please forward copies of Production Insurance forms (renewal, final acreage etc.) to ACC by mail, fax, or scan and send by email to [email protected]

• All producers named on your Production Insurance contract must sign the application

• Ensure name matches throughout application and is consistent with Agricorp Production Insurance contract and name used at your financial institution

• ACC must be 1st assignee on Production Insurance for any crop(s) included in your Eligible Loan(s) • You must inform ACC if there will be a 2nd assignee such as your bank or input supplier

• Keep ACC informed on the status of your Crop(s) and your insurance contract (changes, cancellations, reseeding) • If you anticipate a significant increase or decrease in acres after 1st stage funds are issued, please contact our

Lending Department before planting (such changes require additional information and a change in loan authorization and will not be automatically processed)

Production

Insurance

Premiums

• ACC pays Production Insurance Premiums by July 10th and adds amount to your loan balance

• For applications received after June 15th, it will be the Producers’ responsibility to pay the Production Insurance

Premium to Agricorp by the July 10th deadline (Producers must forward Proof of Payment of this premium along with their application)

• Proof of Payment of Apple & Grape Production Insurance Premium Balance must be on file prior to issuing 2nd

stage funds (balance of insurance premium due in May will be refunded at 2nd stage unless notified otherwise) • Producers are responsible for ensuring Production Insurance Premiums for Processing Vegetables are paid by

their appropriate deadlines(ACC does not pay these Premiums on your behalf)

Repayments

• Producer(s) must repay to ACC the total loan cheque(s) plus all fees and interest

• Producer(s) are to repay Grain & Oilseed loans as the crop(s) are sold • Apples & Potatoes

• 3 pre-authorized debits to your bank account - Last business day of Dec 2014, Jan & Feb 2015 • Advance Payments Program for crops in storage is available October 2014

• Farm Fed Crops and Producers that are Licensed Elevators

• 4 pre-authorized debits to your bank account - Nov 24, Dec 22, Jan 22, and Feb 23 • Grapes

• Payment direct from Grape Board - November 2014 • Processing Vegetables & Seed Corn

• Proceeds will come directly from Processor/Seed Corn Company

• Sugar Beets

• 2 pre-authorized debits from your bank account - 75% of loan Jan 9, 2015; Balance of loan Feb 16, 2015

Default Accounts

• Accounts with outstanding balances after February 28, 2015 will be charged a $300 fee in March plus a minimum

of $100 per month until the loan, including costs, is paid in full

Important Dates

& Deadlines for

Producers

December 2013

Financing available for Winter Wheat (100% issued upon approval)

January 2014

Financing available for Grapes/Apples (1st stage - 60% issued upon approval)

February 2014

Financing available for Spring Seeded crops (1st stage - 60% issued upon approval)

May 15, 2014

Application deadline for Winter Wheat

June 30, 2014

Application deadline for Spring-seeded crops

February 28, 2015

Repayment deadline

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Page 1

SECTION 1

PRODUCER INFORMATION

The Producer hereby applies/apply to ACC for a loan upon and subject to the terms and conditions of this Loan Agreement. Each of the appendices form part of this Loan Agreement

P

LEASE

N

OTE

:

ALL LOANS WILL BE ISSUED VIA

D

IRECT

D

EPOSIT UNLESS A SECOND PAYEE SUCH AS AN INPUT SUPPLIER IS IN PLACE

APPLICANT TYPE

Sole Proprietor

Partnership

Corporation

Co-operative ACC#:

CONTACT INFORMATION

PRIMARY CONTACT INFORMATION:

Full legal name, as on birth certificate

First Name Middle Name Surname Date of Birth (mm/dd/yy)

Civic Address RR # Village/Town/City County Province Postal Code

Home Phone Business or Cell Phone # Fax Number Email Address*

*All communication pertaining to your account at ACC will be sent to your email address if one is provided above.

PARTNERSHIPS, CORPORATIONS, OR CO-OPERATIVES

(including informal partnerships)

LEGAL NAME OF PARTNERSHIP, CORPORATION, CO-OPERATIVE:

PARTNER/SHAREHOLDER INFORMATION:

Full legal name (first, middle, last) Birth date

(mm/dd/yy) Mailing Address Telephone Number

% of shares #1 #2 #3 #4

FINANCIAL INSTITUTION INFORMATION (chartered bank or credit union)

Please indicate if your Financial Institution does or does not have a registered lien or General Security Agreement (GSA) in place

yes

no Name of Institution Mailing Address

Contact Name Email Address Telephone Number & extension Fax Number

FARM CREDIT CANADA (please complete this information if you have a loan or credit line with Farm Credit Canada)

Account Type(s):

Mortgage

Crop Inputs

Feeder Cattle/Breeding Livestock

Equipment

Other __________________________

Local Branch Address

Contact Name Email Address Telephone Number & extension Fax Number

Remember to complete Priority Agreement-Financial Institution for any Financial Institution you deal with fro farming accounts

OPTIONAL:

DISCLOSURE OF LOAN INFORMATION TO NON-BORROWER**

In the event you wish ACC to disclose such information to such persons, please complete the information below. Examples might include your accountant, lawyer, or spouse, if he/she did not sign the original Application. This authorization is specific to loan information (i.e. advances, payments, balance, security etc.).

The Producer(s) hereby authorize ACC to release to the following person(s) our personal, business and commercial information on file with ACC

NAME

RELATIONSHIP/TITLE

TELEPHONE #

EMAIL ADDRESS

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Page 2

SECTION 2

GRAINS, OILSEEDS, VEGETABLES, & TOBACCO - LOAN CALCULATION WORKSHEET

_{(loan rates are subject to change without notice)} Please Note: “Proc.” represents Processing vegetables - Please submit copies of all processor contracts

2

0

1

4

L

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a

n

R

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s

Apples - $0.15/lb Cucumbers - $0.75** Seed Corn* - $3.50/bu Tobacco (Dark-Fired) - $1.70/lb

Barley - $2.50/bu Green & Wax Beans (Proc.) - $0.75** Soybeans (Natto) - $8.50/bu Tomatoes - $70/ton

Beets (Red) - $57/ton Green Peas (Proc.) - $0.75** Soybeans (Organic) - $8.50/bu White Beans - $30/cwt

Black Beans - $38.00/cwt Japan/Other Beans - $38/cwt Soybeans (Regular) - $8.50/bu Winter Wheat (Hard Red) - $4.75/bu

Cabbage - $0.75** Kidney Beans - $38/cwt Soybeans (Tofu) - $8.50/bu Winter Wheat (Hard White) - $4.75/bu

Canola - $8.00/bu Lima Beans (Proc.) - $485/ton Spring Wheat - $4.75/bu Winter Wheat (Organic) - $4.75/bu

Carrots (Proc.) - $90/ton Mixed Grain - $2.25/bu Squash (Butternut) - $118/ton Winter Wheat (Soft Red) - $4.75/bu

Cauliflower - $0.75** Oats - $2.25/bu Sugar Beets - $35/ton Winter Wheat (Soft White) - $4.75/bu

Corn - $3.00/bu Peppers (Banana) - $365/ton Sweet Corn (Proc.) - $99.75/ton

Corn (Organic) - $3.00/bu Peppers (Bell) - $365/ton Tobacco (Air-Cured) - $1.60/lb

Cranberry Beans - $38/cwt Potatoes (Proc.) - $10.00/cwt Tobacco (Burley) - $1.40/lb

*contracts required before second stage ** Capped at 75% of Agricorp Dollar Value Insurance Value

Apple growers:

- Please use Total Guaranteed Production and leave Number of Acres blank

- Please include Agricorp Fruit renewal notice (Hail Rider Coverage is Mandatory) and Crop Underwriting with application

- Proof of Payment of Insurance Premium Balance must be on file prior to issuing 2nd_{stage (this amount will be refunded to you unless notified otherwise)}

A B C

Crop

(please copy full crop name from above)

2014 Loan Rate

Guaranteed Production per

acre

Number of Acres Eligible Loan(s)

[A x B x C] Requested Loan $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

AMOUNT OF LOAN REQUESTED

Insurance Premiums for Spring Crops (not including processing vegetables) will be paid on your behalf (if application received before June 15, 2014) and added to the total loan regardless of total loan requested

$

* Winter Wheat Production Insurance premiums are automatically refunded to applicants up until February 1st_{unless notified otherwise}

□

_{do not refund}

IF FEEDING PART/ALL CROPS BEING FINANCED PLEASE COMPLETE THE FOLLOWING WORKSHEET

* The 0.27 rate includes share of Production Insurance Premium and interest

Crop

Loan Rate

(A)

Amount Fed

(B)

Value Fed

(A x B)

Monthly Repayments processed via 4 Direct Debits on Nov 24, Dec 22, Jan 22, Feb 23. Final repayment amounts will be confirmed at 2nd stage

Final repayment will be adjusted for outstanding balance

bu $

TOTAL VALUE OF CROPS BEING FED $ (C)

MONTHLY REPAYMENT ( C X 0.27*) $

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Page 3

WORKSHEET #2 - FLUE-CURED TOBACCO

Contract

Information

(A) (B)

CONTRACT AND/OR

LICENSE NUMBER CONTRACTED POUNDS lbs lbs lbs

TOTAL POUNDS (C)

ELIGIBLE LOAN CALCULATION

(D) (E) (F) (G) (H)

Number of Acres Guaranteed Production

per Acre (D x E)

Lesser of C or F

Eligible Loan G x $1.50

Flue-Cured Tobacco growers:

- ACC will pay the Production Insurance Premium and the amount will be added to the loan

- Please complete the Letter of Direction (Appendix F)

- Copy of 2014 License to Produce and complete copy of 2014 contract with either Alliance One Tobacco Canada Inc. or Grand River Enterprises must accompany your application

- New applicants: please include a resume detailing experience working with Flue-Cured Tobacco

ALL PRODUCERS TO COMPLETE THE FOLLOWING TABLE:

LOCATION OF CROP(S)

Crop

# of Acres

County

Crop

# of Acres

County

SECTION 3

FLUE-CURED TOBACCO - LOAN CALCULATION WORKSHEET

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Page 4

SECTION 4

GRAPES - LOAN CALCULATION WORKSHEET

_{(loan rates are subject to change without notice)}

Class Number A B [A x B] Contracts Number of Contracted Tonnes Contracted (Previous Year)

Loan Rate per

tonne Buyer Name Date of Expiry

1 tonnes $360 $ 2 tonnes $342 $ 3 tonnes $413 $ 5 tonnes $505 $ 5a tonnes $597 $ 5b tonnes $645 $ 5c tonnes $491 $ 6 tonnes $398 $ 7 tonnes $381 $ 7a tonnes $464 $ 7b tonnes $401 $ 7c tonnes $353 $ 9 tonnes $1073 $ 9a tonnes $935 $ 9b tonnes $1094 $ 9c tonnes $1195 $ 9d tonnes $1226 $ 9e tonnes $1208 $ 9f tonnes $953 $ 10 tonnes $962 $ 10a tonnes $1450 $ 10b tonnes $1406 $ 10c tonnes $1257 $ 10d tonnes $1421 $ 10e tonnes $1623 $ 10f tonnes $1025 $ Distilling tonnes $94 $ Sherry tonnes $225 $

TOTAL = $ (C)

C D Eligible Loan (Lesser of C or D) Total Loan Requested A X B From above Agricorp Guaranteed Production $ $ $ $ Grape growers:

- Please include Agricorp Fruit renewal notice and Crop Underwriting with application

- Proof of Payment of Insurance Premium Balance must be on file prior to issuing 2nd_{stage (this amount will be refunded to you unless notified otherwise)}

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Page 5

SECTION 5

_{(Detailed completion is compulsory for all crops being financed)}

COST OF PRODUCTION WORKSHEET

• Calculate for entire acreage NOT PER ACRE

• Estimate cost for each category to nearest $100

(Crop) (Crop) (Crop) (Crop) (Crop) (Crop)

TOTAL

Seed & Plants $ $ $ $ $ $

Fertilizer, Pesticide &

Other chemicals $ $ $ $ $ $

Drying $ $ $ $ $ $

Land Rent $ $ $ $ $ $

SUB-TOTAL $ $ $ $ $ $ $

Fuel & Oil $ Trucking $ Custom Work $ Miscellaneous $

TOTAL COST OF PRODUCTION

$ (A)

Total Loan Requested

(refer to amounts on worksheets 2, 3, & 4)

$ (B)

Funds Required to Cover Shortfall

[(A) – (B)]

$

PLEASE LIST SPECIFIC SOURCE(S) TO COVER SHORTFALL

: (i.e. Other crops not being financed, operating line etc) 1.

2. 3.

Crop Production is What Percentage of Your Total Farm Operation?

%

INPUT SUPPLIERS/OTHER CREDITORS (Do not include Financial or Equipment Financing Institutions)

Creditor # 1 Creditor # 2 Creditor #3

Name of Supplier/Creditor Location

Telephone Number

Remember to complete Priority Agreement-Other Creditor for any Creditor that has a registered lien in place on your crops

Tick Applicable Box: (mandatory) Yes No Yes No

1. Has there been a change in your legal status since the last Application? 4. Do you have a livestock operation? (i.e. in your corporation or partnership)

Type: _________________________

2. Are your Income/Property Taxes in arrears? eg. Hogs/Cattle

(If, yes provide details on a separate sheet)

3. What month is your farming year end? _________________________________ 5. Are you a licensed elevator?

NB. All applicants (borrowing over $100,000) must

*All applicants who are licensed elevators will be

provide 2013 Financial Statements or Tax Returns

subject to 4 monthly payments via direct debit on

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Page 6

CHECKLIST

Please check this list and avoid costly delays in having your application processed

Signatures Required

• Loan Agreement - all Producers/Applicants page 7 • Financial Institution Authorization - page 12

• Priority Agreement - Financial Institution - Appendix D (page 14)- where all Farm-related loan/deposit

accounts are maintained

• Priority Agreement - Input Supplier/Other Creditor - Appendix E (page 15) - if applicable

Winter Wheat

Applications

• Copy of both Invoice and Summary for all Winter Wheat applications

• Proof of Payment of Winter Wheat Premium

• Winter wheat applications must be submitted prior to May 15, 2014

Spring-Seeded Crop

Applications

• Copy of 2014 Production Insurance Renewal Notice (if received by Agricorp) • Copy of both Invoice and Summary (if applying after planting has occurred) • Proof of Payment of Spring Crops Premium (if applying after June 15, 2014)

Processing Vegetable,

Sugar Beet, Seed Corn

Applications

• Copy of 2014 Production Insurance Renewal Notice (when received by Agricorp) • Copies of 2014 contracts - before 2nd stage funds can be released

• Copy of 2014 Invoice and Summary (or Final Acreage Report) - before 2nd stage funds can be released

Grape & Apple

Applications

• Copy of 2014 Fruit Renewal Notice (apple growers must carry hail rider)

• 2013 Crop Underwriting, and Vineyard Writing or Orchard Summary (if not already on file) • Copies of 2014 Grape Contracts (if not already on file)

• Proof of Payment of 2014 Premium Balance (due May 1, 2014) - before 2nd stage funds can be released

• 2014 Crop Underwriting and Vineyard/Orchard Underwriting - before 2nd stage funds can be released

Flue-Cured Tobacco

Applications

• Copy of 2014 Flue-Cured Tobacco Renewal Notice (if received by Agricorp) • Copy of both Invoice and Summary (if applying after planting has occurred) • Proof of Payment of Premium (if applying after June 15, 2014)

• Copy of 2014 License to Produce from the Flue-Cured Tobacco Board

• Complete copy of 2014 Contract with either Alliance One Tobacco Canada Inc. or Grand River Enterprises • New Applicants: Please include a resume detailing experience working with Flue-Cured Tobacco

Financial

Information

All Applications

• If you are borrowing over $100,000 you must provide the following before 2nd stage funds are released:

• Copy of 2013 Financial Statements or; • Copy of 2013 tax returns for each partner

First Time Applicants

Sole Proprietors

• Copy of Birth Certificate must be sent along with your application

• Copies of both 2011 & 2012 tax returns and current farm balance sheet Appendix G (page 18)

First Time Applicants

Corporations

• Copy of Birth Certificate(s) for all officers & shareholders must be sent along with your application • Complete copy of Articles of Incorporation

• Copy of Shareholder Register • Copy of Director Register

• Copy of Borrowing By-Law

• Copies of 2011 & 2012 Financial Statements

Partnerships

• Copy of Birth Certificate(s) for all partners must be sent along with your application • Copy of Current Master Business License

• Copies of both 2011 & 2012 Financial Statements

• Or Copies of both 2011 & 2012 tax returns for all partners & current farm balance sheet Appendix G - p.18

Informal Partnerships

•

This includes spouse, brother, father, etc. as joint

borrower (as per your Agricorp documentation)

• Copy of Birth Certificate(s) for all partners must be sent along with your application

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Page 7

APPENDICES

Producer(s) hereby acknowledges and agrees that the execution by the Producer(s) as directed below evidences Producer(s) agreement to be bound by all terms and conditions contained in this application and each of the appendices attached hereto, including without limitation in respect of any assignment, undertaking, covenant, agreement, consent, authorization, acknowledgement, representation and/or declaration of the Producer(s) included in this application and each of the appendices attached hereto. Such appendices are listed below.

By signing this application the Producer(s) agree(s) to receiving the transfer of funds electronically, along with receiving electronic transmission of financial account information.

Appendix A - Loan Agreement Appendix E - Commodity Loan Program - Priority Agreement (Supplier/Other Creditor) Appendix B - Production Insurance Assignment Agreement Appendix F - Letter of Direction - Flue Cured Tobacco

Appendix C - Authorization for Pre-Authorized Debits Appendix G - Farm Balance Sheet Appendix D - Commodity Loan Program - Priority Agreement - Financial Institution

SECTION A -

INDIVIDUALS OR SOLE PROPRIETORS

Dated this _____________ day of ___________________________, 20____. Day Month Year

X ___________________________________________________

Producer/Applicant Signature

SECTION B -

PARTNERSHIPS (all partners must sign) - This includes spouse, brother, father, etc. as joint borrower

Dated this _____________ day of ___________________________, 20____. _{Day Month Year}

X ___________________________________________________ X ___________________________________________________

Producer/Applicant Signature Producer/Applicant Signature

X ___________________________________________________ X ___________________________________________________

Producer/Applicant Signature Producer/Applicant Signature

SECTION C -

CORPORATIONS - All Signing Officers to sign

Signed, and delivered by the Producer this __________ day of ____________________________, 20____. _{Day Month Year}

X ___________________________________________________ X __________________________________________________

Authorized Signing Officer - I/WE have the authority to bind the Corporation Authorized Signing Officer - I/WE have the authority to bind the Corporation

X ___________________________________________________ X __________________________________________________

Authorized Signing Officer - I/WE have the authority to bind the Corporation Authorized Signing Officer - I/WE have the authority to bind the Corporation

SECTION D –

CORPORATIONS - Personal Guarantee - All Shareholders must sign

The undersigned, in consideration of the Loan being made to the Producer by ACC, do hereby guarantee the due performance and observation of the obligations of the Producer under this Application and Related Documents including, payment of the Loan and any other amounts that may be due pursuant to the Application and Related Documents. As general and continuing security for the obligations of the undersigned hereunder, the undersigned hereby grants a security interest in and assigns to ACC any and all amounts owed or to be owed by the Producer to the undersigned. The liability of the undersigned shall not be affected by any settlement or variation of the terms of the Application, the Related Documents or the Loan, or with or by the discharge or release of the obligation of the Producer or any other person interested by operation of law or otherwise. Notice of acceptance of this guarantee, notices of non-payment and non-performance, notices of amount of indebtedness outstanding at any time, protest presentment, demand and prosecution of collection, foreclosure and possessory remedies and the right to remove any legal action from the court originally acquiring jurisdiction are hereby expressly waived to the extent permitted by law. The obligation of the undersigned survive the bankruptcy or insolvency of the Producer and the undersigned’s liability hereunder shall be in priority to any liability to the Lieutenant Governor in Council of the Province of Ontario. If more than one person has signed this guarantee then the obligation of the undersigned shall be joint and several.

DATED THIS ___________day of ______________________, 20________.

Day Month Year

X _____________________________________________ X

(Signature of Shareholder) (Signature of Shareholder)

X _____________________________________________ X

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Page 8

SECTION 6

APPENDICES

APPENDIX A

LOAN AGREEMENT

DEFINITIONS:

"ACC" means Agricultural Credit Corporation, its successors and assigns;

"Act" means the Personal Property Security Act, R. S. O. 1990, c. P.10 as amended or re-enacted from time to time; "AG-CANADA" means Agriculture and Agri-Food Canada;

"AGRICORP" means the corporation established by the Agricorp Act, 1996, S. O. 1996, c. 17, its successors and assigns; “AGRISTABILITY” Program” means the Agristability Program as administered by AG-CANADA and AGRICORP; "AMPA" means the Agricultural Marketing Programs Act, S.C. 1997, c. 20, as amended or re-enacted from time to time;

"Application" means the application for a Loan of which or to which this document forms a part or is attached including all appendices and Related Documents; "BRM Program" means any federal or provincial government or regulatory authority income stabilization or equalization program including, without limiting the generality of the foregoing, any business risk management program, market revenue insurance program or agricultural income stabilization program (e.g. Agristability Program) and any and all programs of a similar nature or kind whatsoever and whether currently in existence or that come into existence after the date of this Application;

“CLP” means the Commodity Loan Guarantee Program established by OMAFRA and administered by ACC;

“Collateral” means all of the accounts, accessories, equipment, goods, inventory and personal property, as defined in the Act, of the Producer and all of the undertaking of the Producer, whether now owned or hereafter acquired, directly or indirectly by the Producer and whether now existing or hereafter arising including, without limiting the generality of the foregoing, the following property and undertaking of the Producer:

a) all crop or production insurance payments or proceeds; b) all BRM Program payments or proceeds;

c) all Crops;

d) initial and subsequent payments under the price pooling programs of AMPA for white beans and wheat; e) the Holdback;

f) contracts and the proceeds of contracts respecting the sale of the Crops; and,

g) any leases, accounts owing to or owned by the Producer, statutory licenses, quotas and other transferable rights, including any equitable right in the foregoing assigned or charged under this security document which might otherwise at law be incapable of being collateral in which a security interest can be created and any proceeds derived therefrom but excluding the last day of any lease or agreement therefore; provided upon the enforcement of the security interest herein provided the Producer shall stand possessed of such last day in trust to assign the same to any person acquiring such lease or agreement;

“Crops” means all crops of whatever nature or kind produced or grown by Producer including those listed in the Application and Related Documents, and whether or not stored on-farm or in an elevator or at a warehouse, packing or processing facility and the proceeds from sale or other disposition thereof;

“FCC” means Farm Credit Canada;

“Holdback” means the 2% of the loan amount heldback pursuant to section 3e);

"Loan" means all or any part of any money loaned by ACC to the Producer or advanced for or on behalf of the Producer by ACC from time to time under the CLP including, without limiting the generality of the foregoing, any crop or production insurance premiums paid by ACC for or on behalf of the Producer;

“Management Fee” shall be the fee to be paid by the Producer to ACC or deducted from the Loan as more particularly detailed under “Deductions” in the Information page of this application;

"Obligations" means all money, liabilities, and obligations of every kind and description of the Producer to ACC, whether now or hereafter due or owed, or any future liability or advance, whether direct, indirect or contingent and whether the Producer be bound alone or with others and whether as principal or surety, including the Loan, any unpaid balance of the Loan, interest and costs, including costs of enforcement of the rights of ACC pursuant to this Application, the Related Documents any other agreement or agreements between the Producer and ACC or the Act;

"OMAFRA" means the Ministry of Agriculture Food and Rural Affairs for the Province of Ontario; “PAD” means Pre-Authorized Debit;

“Producer" means the producer/applicant/borrower named in this Application or the Related Documents;

“Producer Contingency Fund” is the fund established by ACC to cover losses arising from any defaults in payment of the monies loaned by ACC pursuant to the CLP and equal to approximately 0.4% of all monies loaned by ACC pursuant to the CLP; and,

"Related Documents" means, any promissory note, loan agreement, account agreement, guarantees, trust deeds, mortgages, security agreement, or any other documents executed in connection with or forming part of this Application or any other application for a loan by ACC to the Producer or related thereto, whether already existing or executed now or later and whether in electronic or other format.

CREATION OF SECURITY INTEREST:

1. For value received and as general and continuing security for the repayment of the Loan, including costs of enforcement, interest and any ultimate unpaid balance thereof owed by the Producer to ACC and to secure payment and performance of the Obligations by the Producer, the Producer hereby charges in favour of and grants to ACC a security interest in all of the Collateral.

PRODUCER'S PERMISSIONS AND DIRECTIONS:

2. The Producer hereby irrevocably authorizes and directs, and this shall be their good and sufficient authority for so doing:

a)each of AGRICORP, OMAFRA and AG-CANADA to make any and all crop or production insurance payments or proceeds and any and all BRM Program payments or proceeds to ACC and further irrevocably authorizes and directs ACC to complete a payment reconciliation, if any, in respect of same;

b)the appropriate marketing board(s) or association(s) of the Crops to make all payments or proceeds in respect of the Crops due to the Producer less applicable deductions, if any, to ACC and further irrevocably authorizes and directs ACC to complete a payment reconciliation, if any, in respect of same;

c)the applicable processor or buyer of Crops to make all payments or proceeds for processed or bought Crops due to the Producer less applicable deductions, if any, to ACC and further irrevocably authorizes and directs ACC to complete a payment reconciliation, if any, in respect of same;

d) all buyers to either withhold from the amount paid to me/us in the respect of each unit of Crops sold, the amounts per unit as calculated by ACC (rates are subject to change without notice) and to remit same to ACC; or, deliver 100% of sale proceeds to ACC; or, ACC to process a PAD following advice from a buyer of a sale of the Crops by the Producer. In connection with any such pre-authorized debit and repayment, ACC may, and the Producer hereby agrees that ACC may and consent to such action, disclose or receive payment and credit information regarding the Producer to or from Eleview or any other Third Party as defined in paragraph 10 in order to facilitate notice of (i) such amounts as are owing by the Producer, and (ii) such Crop sale payments as are received by the Producer, all for purposes of making pre-authorized debits in repayment of amounts owing by the producer.

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Page 9

3. The Producer hereby authorizes and permits ACC, as it in its sole and absolute discretion should decide, to: a)carry out credit checks and lien searches on the Producer;

b)obtain the Producer's previous years' sales records from the appropriate producer marketing board(s) or associations who are hereby irrevocably authorized to release such records;

c)obtain crop or production insurance enrolment, yield history and other related information from AGRICORP, which is hereby irrevocably authorized to release such enrolment, yield history and related information;

d)obtain BRM Program enrolment and other related information from AG-CANADA, OMAFRA and/or AGRICORP, each of which is hereby irrevocably authorized to release such BRM Program enrolment and other related information;

e)deduct from the Loan the Holdback as a holdback to be held by ACC and to be applied by ACC to the Loan repayment upon maturity or default; f) create a Producer Contingency Fund;

g)where ACC receives an invoice from AGRICORP for the Producer's crop or production insurance premium(s), pay the invoice and to add the amount of the invoice plus 2.4% to the principal amount of the Loan;

h)deduct from the Loan the Management Fee;

i) through such agents as ACC may direct, enter the Producer's lands and premises or those from whom such land and premises are leased at any time to inspect the Producer’s books, documents, records and the Crops and, in the event of default by the Producer, to take such steps as ACC shall deem necessary to protect, maintain and harvest the Crops;

j) make any amendments, deletions or additions to this Application or to the Related Documents that may be required to correct any errors or omissions in same and the Producer hereby irrevocably appoints ACC its attorney for this purpose;

k)increase or decrease the Loan to such amounts as are approved by ACC and the Producer hereby agrees that any such increase or decrease shall in no event be deemed to have affected the security interest or the enforceability of the security interest given under this Application or the Related Document; and

l) negotiate, cash or endorse on the Producer's behalf any cheques payable jointly to the Producer and ACC, to apply the proceeds of same to the Loan or any other Obligations and the Producer hereby irrevocably appoints ACC its attorney for this purpose.

INTEREST RATE

4. a) The interest rate on the Loan, (excluding the Holdback) up to and including the maturity date as set forth in paragraph 5, shall be the BMO Bank of Montreal prime lending rate in effect from time to time, calculated daily and compounded monthly. After maturity and after default the rate of interest on the Loan (excluding the Holdback) shall be the BMO Bank of Montreal prime lending rate in effect from time to time plus 2%, calculated daily and compounded monthly. No interest shall be paid on the Holdback by ACC.

b) “BMO Bank of Montreal prime lending rate” shall mean the floating annual rate of interest, including any charges of an equivalent nature thereto or such other measurement of rate of return or return on investment or substitute therefore, established from time to time by BMO Bank of Montreal as the base rate it uses to determine rates of interest on Canadian dollar loans to customers in Canada and designated by BMO Bank of Montreal as its prime rate.

c) ACC reserves the right and the Producer hereby agrees that ACC shall be entitled to change the rate of or manner in which interest is calculated on the Loan (the “Rate Change”) to such rate as ACC shall decide upon from time to time. ACC shall give the Producer not less than thirty days written notice before such Rate Change comes into effect specifying the new rate of or manner in which interest is calculated, the effective date of the Rate Change (the “Effective Date”) and the Producer shall thereafter have thirty days from the date of such notice to inform ACC in writing that the Producer accepts or rejects such Rate Change. If the Producer rejects such Rate Change within the thirty days then the loan and interest accrued and any other monies owed to ACC shall become due and payable on the Effective Date which, if not paid, shall entitle ACC to all its remedies hereunder as if payment of the Loan were in default. If the Producer accepts the Rate Change then the Rate Change shall come into effect as of the Effective Date and the Loan shall thereafter bear interest in the manner and at the rate specified in the notice of the Rate Change. If the Producer fails to inform ACC in writing within the time specified of the Producer’s acceptance or rejection of the Rate Change the Producer shall be deemed to have accepted the Rate Change and the Rate Change shall come into effect as of the Effective Date and the loan shall thereafter bear interest in the manner and at the rate specified in the notice of the Rate Change.

MATURITY

5. Subject to any earlier date as set forth in paragraph 8, the Producer shall repay the Loan and all accrued interest upon the earlier of the date upon which: a) the Crops (or any part thereof) are sold, whether or not in the ordinary course of business of the Producer;

b) the Crops (or any part thereof) are determined to be unsalvageable by AGRICORP or ACC; c) the Crops (or any part thereof) are fed or processed;

d) February 28th of the year next following the year in which the Loan is made, (provided in the case of that portion of the Loan for grapes for processing and fresh market grapes, November 30th_{of the year in which the Loan is made): or,}

e) the Crops (or any part thereof) are entered into the AG-CANADA Advance Payments Program;

provided that only that portion of the Loan for such Crops so sold, determined to be unsalvageable, fed or processed or entered shall be then due.

PRODUCER RESPONSIBILITIES

6. The Producer shall:

a) file with ACC immediately upon receipt of same, a copy of the Crop Yield Confirmation and/or Proof of Loss/Production Guarantee Reports (or equivalents) provided by AGRICORP after harvest of the Crops identified in this Application;

b) repay to ACC the Loan together with the accrued interest on the entire Loan, at the rates set forth in paragraph 4 up to and including the day before the date said payment(s) is/are applied by ACC;

c) provide ACC with full particulars of any security in the Collateral or proceeds thereof given to any third party and obtain and file with ACC a priority agreement as prescribed by ACC prior to any advance being made of the Loan to the Producer;

d) provide ACC with full particulars of any security in the Collateral or proceeds thereof given to any third party after any advance has been made on the Loan to the Producer;

e) apply the proceeds of the Loan as advanced by ACC to plant, cultivate and harvest the Crops in a good and proper manner;

f) maintain in good standing the Producer's coverage under any Province of Ontario production insurance program as specified on the crop or production insurance forms submitted to ACC and to pay all premiums in connection with same when due, failing which ACC is hereby irrevocably authorized to pay same and to add the amount of the premium plus 2.4% and all of ACC's related costs and expenses of doing so to the principal balance of the Loan; g) maintain in good standing the Producer's enrolment in the BRM Program applicable to the Producer, if any;

h) immediately pay to ACC upon demand all amounts ACC pays or incurs in maintaining or enforcing its security and the Obligations , including without limiting the generality of the foregoing, all legal, search and registration fees, all costs and expenses in respect of inspecting, protecting, insuring, possessing, cultivating or harvesting all or any part of the Collateral including preparing the Collateral for sale and selling it, collecting any part of the Loan or other monies payable to ACC including legal fees and expenses on a substantial indemnity basis in so doing and interest thereon as herein provided;

i) keep the Collateral insured against loss or damage by such risks as ACC may reasonably require to the full insurable value thereof and either assign the insurance policies to ACC or have the loss thereunder made payable to ACC as ACC may require;

j) make any claim to which the Producer is eligible under the Province of Ontario Grain Financial Protection Program, failing which ACC shall be entitled to do so, in which case the Producer shall release to ACC all relevant books, records and documents and does hereby irrevocably and absolutely assign to ACC, to the extent of any obligation under this Application and the Related Documents, any and all of the Producer's rights to receive payment from the Grain Financial Protection Board in respect of any applicable Crops;

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k) notify any buyers of the Crops (or any portion thereof) to direct payment to ACC and the Producer hereby irrevocably authorizes and directs such buyers to pay the purchase price of the Crops to ACC;

l) not sell the Crops, except in the ordinary course of business and only to marketing boards, elevators, processors or buyers listed in this Application or the Related Documents or otherwise authorized by ACC; and,

m) not enter into any deferred payment arrangement/contract with a buyer without the prior written approval/authorization of ACC.

PRODUCER REPRESENTATION AND WARRANTIES

7. The Producer represents and warrants to ACC that:

a) the Producer has good and marketable title to the Collateral and/or proceeds thereof free and clear of any security interest, encumbrance or lien except as disclosed in this Application or as previously disclosed by the Producer to ACC;

b) this Application and the Related Documents are complete and true in all respects;

c) there has not been a valuation day under the Family Law Act (Ontario) in relation to any interest of the Producer in nor does any spouse have a right or claim to the Collateral, which would adversely affect the rights of ACC hereunder;

d) the Producer is not a partner in any partnership or shareholder in any corporation, except as disclosed in the Application;

e) the Producer holds all requisite licenses, quotas and/or contracts that may be required pursuant to any regulations under the Farm Products Marketing Act (Ontario) and/or any other applicable legislation in respect of the Collateral and all fees owing in respect of same are fully paid; and,

f) the Producer does not own more than a 50% interest in a packing, warehousing, processing, elevator or brokerage operation. [Note: those Producers who do own more than a 50% interest must sell the Crops to a buyer designated by ACC or make other arrangements satisfactory to ACC], and

g) the producer has received, or has had the opportunity to receive, independent legal advice with respect to the subject matter of Appendices A to G inclusive, and each of the agreements the producer has made in Appendices A to G, inclusive.

EVENTS OF DEFAULT

8. a) The Loan and all accrued interest and costs including all amounts set out in section 6h)legal fees on a full indemnity basis together with all other monies payable or otherwise owed by the Producer to ACC shall, at the option of ACC where ACC determines in its absolute discretion that any of the following events of default have occurred, become immediately due and payable and any security held by ACC for the payment thereof shall become immediately enforceable in each and any one of the following events:

i) the Producer fails to perform or observe any of the Obligations or is in jeopardy of so doing and such failure shall not be remedied within the time specified in any notice given to the Producer by ACC;

ii) any representation, warranty, statement or disclosure made in connection with this Application or the Related Documents is false or erroneous in any material respect or if the Producer has failed to supply information that is material;

iii) the Producer becomes insolvent or bankrupt or subject to the provisions of the Bankruptcy and Insolvency Act (Canada) or goes into liquidation or makes a general assignment for the benefit of creditors or otherwise acknowledges insolvency;

iv) the Producer abandons all or any part of the Collateral, including the Crops or ceases or threatens to cease producing the Crops or threatens to commit any act of bankruptcy;

v) any execution or other process of any court becomes enforceable against the Producer or the Collateral; vi) the security referred to in this Application or the Related Documents is impaired or is in jeopardy; vii)the Producer defaults in the repayment of any part of the Loan when it becomes due and payable;

viii)the Producer has used the Loan or any part thereof for a purpose other than that described in the Application; ix) the Producer has given a preference to any creditor other than ACC without the prior written approval of ACC;

x) the Producer is selling or conveying the Collateral including assets of the farming operation that formed a basis for this Application; xi) the Producer fails to co-operate in respect of an audit performed by ACC or its appointee;

xii)the Producer is in default in the performance of any of its Obligations or under any other agreement between ACC and the Producer; xiii)the land owned by the Producer, directly or indirectly, and from which the Crops (or any part thereof) are to be harvested is sold; or, xiv)the lease or rental of the land from which the Crops (or any part thereof) are to be harvested is in default or otherwise is breached.

b) Upon default by the Producer in payment of all or any part of the Loan or interest or other liability of the Producer to ACC or in the performance or observance of any of the Obligations, ACC may appoint in writing any person to be a receiver (which term shall include a receiver and manager) of the Collateral, including any rents and profits thereof and may remove any receiver and appoint another in his or her stead, and such receiver so appointed shall have power to take possession of the Collateral and to carry on or concur in carrying on the business of the Producer, and to sell or concur in selling the Collateral or any part thereof. Any such receiver shall for all purposes be deemed to be the agent of the Producer. ACC may from time to time fix the remuneration of such receiver.

1.c) All monies from time to time received by such receiver shall be paid by the receiver:

i) in discharge of all rents, taxes, rates, insurance premiums and outgoings affecting the Collateral; ii) in payment of the receiver’s remuneration;

iii) to keep in good standing any liens and charges on the Collateral in priority to the security interest constituted by this Application or the Related Documents; iv) in or toward payment of such parts of the Loan or interest or any other Obligations and liability of the Producer to ACC as ACC determines; and,

v) any balance shall be paid to the Producer or the Producer’s assigns.

d) ACC, in appointing or refraining from appointing such receiver, shall not incur any liability to the receiver, the Producer or otherwise. In addition to the rights and remedies specified herein ACC shall, upon default by the Producer, have the rights and remedies of a secured party under the Act and any successor legislation thereto.

2. e) Producer is liable for a charge of $100 in respect of dishonoured cheques.

PRODUCER ACKNOWLEDGEMENTS AND AGREEMENTS

9.The Producer acknowledges and agrees that:

a)ACC may reject the Application for any reason it considers necessary or advisable and likewise may decline to make any advance under the Application on the same basis;

b)notwithstanding any loss, damage or destruction of the Crops, and notwithstanding that any claim for insurance may be in existence or may be denied or delayed, the Producer remains obligated to repay the Loan in full, plus interest and costs, where applicable;

c)ACC may retain any amounts paid to it by the Producer that are not immediately due to it by virtue of paragraph 5 and apply same to repayment of any portion of the Loan that subsequently becomes due to it hereunder notwithstanding the repayment is applied by ACC in respect of a different crop;

d)notice of a security interest may be registered under the Act;

e)ACC has a business relationship with FCC and as such the Loan is partially funded by FCC;

f) this transaction is not a consumer transaction nor a consumer agreement within the meaning of the Consumer Protection Act (Ontario);and,

g)where there is any inconsistency between this Loan Agreement and any other of the Related Documents including the ACC Reference Guide the provisions of this Loan Agreement shall prevail.

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PRIVACY AND CONSENT TO DISCLOSURE OF INFORMATION

10.The Producer hereby authorizes and consents to the obtaining by ACC and its agent CRM Canada Ltd, or any other agent that may from time to time be selected by ACC, of a credit report on the Producer and the disclosure of all financial and other information about the Producer by affiliated and subsidiary companies of ACC, FCC, credit bureaus, agencies, banks, credit unions, trust companies, financial institutions, creditors, lenders, grain elevators, suppliers and other third parties (all of the foregoing hereinafter “Third Parties”) as ACC shall decide from time to time and to the collection, use and disclosure by ACC from and to such Third Parties of personal, business, and commercial information about the Producer for the purposes of verifying and determining the Producer’s eligibility for the Loan or any intended borrowings by the Producer from FCC and the status of any debts of the Producer to any Third Parties, including:

a) the disclosure by OMAFRA and/or AGRICORP and/or AG-CANADA to ACC of such information regarding the Producer as any of them may have in their respective files, including but not limited to those of any crop or production insurance and BRM Program;

b) the disclosure by ACC of such information as is contained in this Application and the Related Documents to OMAFRA and/or AGRICORP and/or AG-CANADA and the use of such information by OMAFRA and/or AGRICORP as authorized by the Ministry of Agriculture, Food and Rural Affairs Act, R. S. O. 1990, c.M.16 as amended or re-enacted from time to time or by AG-CANADA pursuant to any federal legislation. Producer acknowledges that

information held by OMAFRA and/or AGRICORP may be disclosed to third parties pursuant to the provisions of the Freedom of Information and Protection of Privacy Act or in the case of AG-CANADA pursuant to the provisions of the Privacy Act. Questions and concerns regarding such collection, use and disclosure by OMAFRA and/or AGRICORP should be directed to: The Director, Farm Assistance Program Branch, OMAFRA and/or AGRICORP, 1 Stone Road West, Guelph, Ontario N1G 4Y2. The information provided to AG-CANADA will be protected under the federal Privacy Act. The personal information retained by AG-CANADA will be held in Personal Information Bank PPU140. You may access your personal information held by AG-CANADA by making a formal request under the Privacy Act in writing or by completing a Personal Information Request Form which is available at website http://www.tbs-sct-gc.ca/tbsf-fsct/350-58_e.asp. Your request should be mailed to: Agriculture and Agri-Food Canada, Coordinator, Access to Information and Privacy, 930 Carling Avenue, Room 282, Ottawa, Ontario, K1A 0C5, Tel. 613-759-6602, Fax. 613-759-6547; and,

c) Unless Producer(s) withdraw(s) consent by notifying ACC by email at [email protected] or by calling 1-888-278-8807, Producer(s) hereby authorize(s) and consent(s) to the use by ACC of the personal, business and commercial information about Producer(s) for the purpose of contacting the Producer to provide information in relation to other programs offered or administered by ACC.

A signed copy of this Application/Agreement can be relied upon by OMAFRA, AGRICORP, AG-CANADA, credit bureaus, agencies, banks, financial institutions, FCC, lenders and other third parties as the Producer’s authorization and consent for them to disclose credit information about the Producer to ACC. To obtaina copy of ACC’s Privacy Policy or to pose questions or concerns regarding privacy issues contact ACC’s Privacy Compliance Officer at 1-888-278-8807.

MISCELLANEOUS

11 a) Entire Agreement - Except for any other instrument delivered under the Application or in connection with this Application, this Application and the Related Documents constitute the entire agreement between ACC and the Producer with respect to the subject matter of it.

b) Amendment - Except as otherwise provided herein this Application and the Related Documents may not be amended or modified in any respect except in accordance with the provisions of them.

c) Waiver and Consent - No waiver of any provision of this Application or of the Related Documents or consent given pursuant to this Application or the Related Documents by ACC shall be effective unless in writing and duly executed by ACC. No failure or delay on the part of ACC in exercising any right or privilege shall operate as a waiver by ACC unless so evidenced by a written instrument. Any waiver or consent by ACC will not preclude the further or other exercise by ACC of any right, remedy, power or privilege which is the subject of waiver or consent.

d) Notice - All notices and other communications shall be addressed as follows: To the Producer: At the address set out in the Application and Related Documents. To ACC: Agricultural Credit Corporation, 660 Speedvale Avenue West, Suite 201, Guelph, Ontario N1K 1E5

e) Survival of Representations, Warranties and Covenants - All agreements, representations, warranties and covenants made by or on behalf of the Producer shall be considered to have been relied upon by ACC and shall survive the execution and delivery of this Application and any investigation made at any time by or on behalf of ACC.

f) Further Assurances - The Producer agrees that it will do, execute and deliver or will cause to be done, executed and delivered all further acts, documents and things as ACC may reasonably request for the purpose of giving effect to this Application and security interests created thereby.

g) Severability - Any provision in this Application, which is prohibited or unenforceable, shall be ineffective to the extent of prohibition or unenforceability without invalidating the remaining provision of this Application.

h) Time of the Essence - Time shall be of the essence of this Application.

i) Jurisdiction - This Application shall be construed and interpreted in accordance with the laws of Ontario.

j) Assignment - This Application shall endure to the benefit of and be binding on ACC and the Producer and their respective heirs, executors, administrators, successors and assigns; provided this Application and the Obligations, including the Loan, are personal to the Producer and may not be assigned by the Producer. k) Jointand Several Liability - If more than one person executes this Application, the obligations of such persons under this application shall be joint and several. l) Power of Attorney - Producer hereby irrevocably appoints ACC or any of its officers or directors as the Producers’ lawful attorney for the purpose of carrying

out any of the obligations of the Producer under this Application.

m)Extended meaning of Applicant, Producer, Borrower or Co-Borrower - The words Applicant, Producer, Borrower or Co-borrower may be freely interchanged.

Producer acknowledges and agrees that Producer’s completion and execution of page 7 evidences Producer’s agreement to be bound by all terms and conditions of this appendix including without limitation in respect of any assignment, undertaking, covenant, agreement, consent, authorization, acknowledgement, representation and/or declaration of the Producer(s) included herein.

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SECTION 7

FINANCIAL INSTITUTION AUTHORIZATION

(Detailed completion is compulsory)

As part of the approval process for your loan application with Agricultural Credit Corporation, a bank update is completed to

ensure the most current and relevant information is available.

This authorizes your financial institution to release standard industry information to an authorized representative of Credit Risk

Management Canada (CRM) who act on behalf of Agricultural Credit Corporation. Should you have any concerns or questions

regarding the type of information requested, please feel free to discuss with your financial institution or Agricultural Credit

Corporation.

Thank you.

To:

(Name of Financial Institution)

I the undersigned hereby irrevocably authorize and direct you to release detailed personal and commercial banking

information to Credit Risk Management Canada and Agricultural Credit Corporation to facilitate my loan application

with Agricultural Credit Corporation.

Applicants Personal Full Legal Name(s)

_____

Name(s) Account(s) Held Under

_____

Commercial (Farm) Name

X

Applicant Signature Applicant Signature

(I have the authority to bind the Corporation)

(if required)

Date (mm/dd/yyyy)

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APPENDIX B

Assignment Request

CANADA-ONTARIO

Production Insurance/Assurance De Production

Production Insurance #

* Please complete all sections

Name of Customer Area Code - Telephone No. Res. Area Code - Telephone No. - Bus.

Address City/Town Postal Code

County Township

I hereby assign my right to any indemnity for the following program:

Production Insurance Crop Year: 2014

For the following crops:

First Assignee

Name

AGRICULTURAL CREDIT CORPORATION

Address

660 SPEEDVALE AVENUE WEST SUITE 201

City

GUELPH

Postal Code

N1K 1E5

Area Code - Telephone No.

(888) 278-8807

Second Assignee

Name

Address City

Postal Code Area Code - Telephone No.

I agree that the above noted assignee(s) may be notified of any payment default or cancellation of my Production Insurance or Business Risk Management Program contracts or any other matter in relation to my Production Insurance or Business Risk Management Program.

Personal Information on this form and in supporting documents is collected under the Crop Insurance Act (Ontario), 1996. It will be used for administration and related audits of the Crop Insurance program. Direct questions about the collection of this information to: FOI Coordinator for AGRICORP.

1 Stone Rd. West Box 3660, Stn. Central Guelph, ON N1H 8M4 Tel. 1-888-247-4999 Fax (519) 826-4118 www.agricorp.com

1, rue Stone Ouest C.P. 3660, Station centrale Guelph, (Ontario) N1H 8M4 Tel. 1-888-247-4999 Fax (519) 826-4118 www.agricorp.com Amended 10 March 2004

Producer acknowledges and agrees that Producer’s completion and execution of page 7 evidences Producer’s agreement to be bound by all terms and conditions of this appendix including without limitation in respect of any assignment, undertaking, covenant, agreement, consent, authorization, acknowledgement, representation and/or declaration of the Producer(s) included herein.

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APPENDIX C

COMPLETE THIS PAGE IF YOU ARE A NEW APPLICANT OR IF A CHANGE HAS BEEN MADE SINCE 2013 APPLICATION

MY/OUR AUTHORIZATION FOR PRE-AUTHORIZED DEBITS (“PAD”) ISSUED TO:

Payee:

Agricultural Credit Corporation (“ACC”)

Address:

660 Speedvale Avenue West, Suite 201, Guelph Ontario N1K 1E5

Telephone:

1-519-766-0544 or Toll Free 1-888-278-8807

Email:

[email protected]

This authorization is for my/our payments due under this CLP Application and is for business use.

I/We warrant and represent that the following information is accurate:

Name of Financial Institution (processing institution)

Address (Including civic number)

City

Postal Code

Email Address of Producer

Institution # (3 digits)

Branch # (5 digits)

Your Account #

I/We have attached a specimen cheque marked “VOID” to this Authorization.

By signing below I/we hereby authorize ACC to debit my/our bank account identified above for the amounts and on the dates when due as listed in this CLP Application as I/we agreed pursuant to this CLP Application, including any applicable interest, costs, and fees as detailed in this CLP Application. In the event there remains an outstanding balance after the due date listed in this CLP Application I/we authorize ACC to debit my/our bank account identified above for this balance. I/We agree that if any payment is dishonoured by my/our bank for any reason, then ACC is authorized to issue another debit in place of the dishonoured payment until my/our payment is honoured.

For any debit other than my/our contract payment as listed in this CLP Application, I/we are entitled to receive prior notice from ACC of the amounts to be debited to my/our account and the date of such debits at least 10 calendar days before the date of such debits. I/We consent to ACC providing any of these notices to me/us by the e-mail address I/we have provided above.

I/We agree to waive notice from ACC of the amount and date of each payment(s) as it is listed in this CLP Application.

I/We may revoke my/our authorization at any time by providing written notice to ACC of at least 10 days before the date my/our wish for the revocation to take effect. To obtain a sample cancellation form, or for more information about my/our right to cancel this PAD Agreement, I/we may contact my/our financial institution or visit www.cdnpay.ca.

I/We have certain recourse rights if any debit does not comply with this agreement. For example, I/we have the right to receive reimbursement for any debit that is not authorized or is not consistent with this PAD Agreement. To obtain more information on my/our recourse rights, I/we may contact my/our financial institution or visit www.cdnpay.ca.

In the event that ACC debits an unauthorized amount, funds will be re-deposited into the above-noted account within 30 days notice from me/us to ACC.

NB. REMEMBER TO ATTACH A VOID CHEQUE

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APPENDIX D

COMMODITY LOAN PROGRAM (CLP) - PRIORITY AGREEMENT – FINANCIAL INSITUTION

A separate Priority Agreement must be completed for each Financial Institution (i.e. Bank, Credit Union, etc.) at which the Applicant/Producer maintains a Farm-related deposit/loan account.

Producer Name (the “Producer”): _______________________________________________________________________________________________ (Name of Individual, Partnership, or Corporation)

Agricultural Crop(s): _________________________________________________ (the “Crop(s)”) Amount of Loan (the “Producer Loan”): $______________

Please Complete (EITHER Part 1 OR Part 2) plus Complete & Sign Part 3

PART 1 – To be completed where the Financial Institution HAS security interest in current year Crops (i.e GSA)

In consideration of the matters hereinafter described, Agricultural Credit Corporation (“ACC”) and ____________________________________(the “Lender”), hereby agree that ACC’s Name of Financial Institution

security interest in the current year's Crop(s) and proceeds therefrom and in the production insurance payments and Business Risk Management Program payments (the “Security”) of the Producer now held or to be held by ACC, shall rank prior to the Lender's security interest in the said Security given by the Producer under the provisions of Section 427 of the Bank Act and any other security interest given to the Lender in respect of said Security, but only to the extent of securing repayment to ACC of the Producer Loan plus interest and costs; provided such interest and costs shall not exceed the actual interest and costs payable by Producer to ACC and provided that the Lender may apply up to a maximum of

$___________________ of the monies advanced to the Producer by ACC in order to reduce the Producer's indebtedness to the Lender pursuant to an OPERATING CREDIT FACILITY.

This agreement is subject to the following conditions:

i) that the Producer Loan, less a 2.0% holdback and any fees payable by the Producer to ACC, shall be payable jointly to the Producer and the Lender or in the event that another creditor holds a prior or equal security interest in the same Security, jointly to the Producer, the Lender and to that other creditor;

ii) that the Producer’s assignment of production insurance payments and, if applicable, Business Risk Management Program payments with respect to the Crop(s) and proceeds therefrom assigned to ACC shall rank prior to the Lender’s claim on such payments but only to the extent of securing repayment to ACC of the Producer Loan plus interest and costs as herein provided; and

iii) that the priority of the security interest of ACC in the current year’s Crop(s) and proceeds therefrom of the Producer under this agreement shall terminate as between ACC and the Lender when and to the extent that the Producer feeds the Crop(s) to livestock of the Producer.

PART 2 –Completed by Financial Institution where NO security interest is held in current year Crops

This is to certify that ___________________________________________(the “Lender”) does not hold any security interest under Section 427 of the Bank Act or security under any Name of Financial Institution

other law of Canada or the Provinces with respect to the current year’s Crop(s) in the name of the Producer. The priority of the security interest of Agricultural Credit Corporation (“ACC”) in the current year’s Crop(s) and proceeds therefrom, production insurance payments and Business Risk Management Program payments of the Producer under this agreement shall terminate as between ACC and the Lender when and to the extent that the Producer feeds the Crop(s) to livestock of the Producer.

PART 3 – To be signed by all Lenders, regardless of security interest or lien

IN WITNESS WHEREOF the Lender has caused these presents to be signed by an authorized person/officer. This agreement shall be governed and construed in accordance with the laws of the Province of Ontario.

Dated at ____________________________the ________________day of _________________, 20_ ___.

___________________________________________________ _______________________________________ __________________________________________________ Print Name of Authorized Officer of Lender Print Title Print Address

X__________________________________________________ _______________________________________ ___________________________________________________ Signature of Authorized Officer of Lender Email Address of Officer Name of Financial Institution

I have the authority to bind the Lender

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APPENDIX E

COMMODITY LOAN PROGRAM (CLP) - PRIORITY AGREEMENT – SUPPLIER/OTHER CREDITOR

For Liens OTHER THAN at a Financial Institution (e.g. Input Supplier-Based Creditors and/or Vegetable Processors)

Producer Name (the “Producer”): _______________________________________________________________________________________________ (Name of Individual, Partnership, or Corporation)

Agricultural Crop(s): _________________________________________________ (the “Crop(s)”) Amount of Loan(the “Producer Loan”): $______________ PART 1 – To be completed where the Supplier/Other Creditor HAS security interest or lien in current year crops

In the name of _______________________________________________ located at ____________________________ (the “Creditor”), does hereby consent that: Name of Secured Creditor

FOR VALUE RECEIVED and in order to induce Agricultural Credit Corporation (“ACC”) to make loans to the Producer, the undersigned Creditor:

1. subordinates its security interest to and gives priority to any security interest of ACC now held or to be held by ACC in the Crop(s) and proceeds therefrom and in the production insurance payments and Business Risk Management Program payments of the Producer (the “Security”):

2. limits the above subordination and priority to securing repayment to ACC of the Producer Loan plus interest and costs;

3. declares that the Producer is and/or is expected to be indebted to the Creditor in the amount of ($ _______________________) Total Creditor Security

4. agrees that ACC may pay the Producer Loan in advances, less a 2.0% holdback and any fees payable by the Producer to ACC, payable jointly to the Producer and the Creditor and to such other creditors who hold a security interest in the Security;

5. agrees not to apply any monies loaned by ACC to the Producer and paid to the Creditor by the Producer for any purpose other than payment for input supplies sold by the Creditor to the Producer for the Crop(s) being seeded in the current Crop(s) year;

6. agrees that the Producer’s assignment of production insurance payments and Business Risk Management Program payments, (if applicable), to ACC and ACC’s security interest therein shall rank prior to the Creditor’s claim on such payments, but only to the extent of securing repayment to ACC of any monies loaned by ACC to the Producer plus interest and costs; and

7. authorizes and hereby appoints ACC, through each of its signing officers (who are hereby appointed the Creditor’s lawful attorneys in this regard) to negotiate on the Creditor’s behalf cheques payable to the Creditor and the Producer and/or other creditors, and to apply the proceeds of same to any monies loaned by ACC to the Producer plus interest and costs.

PART 2 – To be signed by all Creditors

This agreement shall be governed by and interpreted in accordance with the laws of the Province of Ontario.

IN WITNESS WHEREOF the undersigned Creditor has caused these presents to be signed by an authorized person/officer

Dated at ____________________________the ________________day of _________________, 20_____.

____________________________________________________ _______________________________ _________________________________________ Print Name of Authorized Officer of Creditor Print Title Print Address

X________________________________________________ _______________________________________________ Signature of Authorized Officer of Creditor Name of Creditor

I have the authority to bind the Creditor

Part 2 must be completed even if the following applies

Although we the Creditor do have a security interest or lien registered on the aforementioned Security of the Producer we hereby declare that we do not require our name to appear as a payee on any advances that may become available from ACC to the Producer.

_________________________________________________ __________________________________________________

Print Name of Authorized Officer or Creditor Signature of Authorized Officer or Creditor (I have the authority to bind the Creditor)

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APPENDIX F

TO BE COMPLETED BY ALL FLUE-CURED TOBACCO GROWERS

LETTER OF DIRECTION - FLUE CURED TOBACCO

To: Alliance One Tobacco Canada Inc. / Grand River Enterprises

Re: _____________________________________________________________________________________________________________ PRODUCER NAME & ADDRESS

Contract & License Number(s): _______________________________________________________________________________________

This letter of direction will confirm that Agricultural Credit Corporation, is the first secured creditor for the above noted Producer(s) Flue-Cured Tobacco crop, crop proceeds, and production insurance proceeds, therefore I/WE AUTHORIZE AND DIRECT you to:

• Provide to Agricultural Credit Corporation a full disclosure of all credit information including a sale and loan history profile, if applicable; • Provide to Agricultural Credit Corporation a copy of the Board’s annual crop inspection report;

• pay to the order of Agricultural Credit Corporation, and mail to Agricultural Credit Corporation at 660 Speedvale Avenue West, Suite 201,

Guelph, Ontario N1K 1E5 the proceeds of all tobacco sales proceeds (at the rep