ManitobaAgriculturalServicesCorporation

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HailHailInsuranceInsuranceContract

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Table of ContentsPART 1 – Interpretation ....................................................... 1 1.01 Definitions ......................................................1 1.02 CapitalizedTerms .......................................... 1

PART 2 – Scope of Insurance ............................................... 2 2.01 PeriodofInsurance ........................................2 2.02 AlternateUseException .................................2 2.03 InsurableInterest ...........................................2 2.04 SupplementalApplications .............................2 2.05 CancellationbyInsured ..................................2 2.06 SaleofLand ...................................................2 2.07 PremiumPaymentDeadline ..........................3 2.08 StrawberryEligibility .......................................3 2.09 NovelCrops ...................................................3

PART 3 – Notice of Loss and Inspection ............................. 3 3.01 GeneralNotice ...............................................3 3.02 LossesPriortoAcceptance ............................3 3.03 AppraisalofLoss ............................................3 3.04 RightofEntry .................................................3 3.05 AccesstoRecords .........................................3 3.06 NilClaimFee. .................................................3 3.07 FailuretoNotify ..............................................4 3.08 LateNotification .............................................4 3.09 NoticeofLossForm .......................................4 3.10 FinalDate .......................................................4

PART 4 – Indemnity .............................................................. 4 4.01 YieldLossIndemnity ......................................4 4.02 CalculationofIndemnity .................................4

PART 5 – Restrictions and Uninsured Causes of Loss ...... 4 5.01 ViableCropRequirement ...............................4 5.02 YieldLossIndemnityRestriction ....................4 5.03 RepresentativeStrip(s) ..................................5 5.04 FireLossRestriction ......................................5 5.05 LessThan5%Damage ..................................5

PART 6 – Harvesting Bonus ................................................. 5 6.01 HarvestingBonus ...........................................5

PART 7 – Right of Appeal .................................................... 6 7.01 AssessmentofLossandRighttoAppeal .......6 7.02 AppealFee .....................................................6 7.03 AppealTribunal ..............................................6

PART 8 – Assignment ........................................................... 6 8.01 AssignmentofIndemnity ................................6 8.02 AssignmentofContract ..................................7

PART 9 – Subrogation .......................................................... 79.01 RecoveryRight ...............................................79.02 TransferofRecoveryRight ............................79.03 ThirdPartyCompensation .............................79.04 Limitation ........................................................7

PART 10 – Continuous Hail Insurance Option.................. 710.01 Eligibility .........................................................710.02 Landlords .......................................................810.03 SelectionandEffect .......................................810.04 MaintainAgriInsuranceCoverage ..................810.05 OptionalCHIOCropCoverage ......................810.06 SelectionofOptionalCHIOCropforCoverage .. 810.07 Reseed ...........................................................910.08 NoCancellation ..............................................910.09 AddingorDeletingAcreage ...........................9

PART 11 – General ............................................................... 911.01 Misrepresentation ..........................................911.02 CreditPrivileges .............................................911.03 IndemnitiesAppliedtoDebt ...........................911.04 Waiver ............................................................911.05 NoSubsequentWaiver ................................1011.06 DeadlineforActionAgainstCorporation ......1011.07 ClaimOverpayments ...................................1011.08 EnforcementFees ........................................1011.09 NoWithholdingbyInsured ...........................1011.10 Taxes ............................................................1011.11 Severability ..................................................1011.12 BusinessDay ............................................... 1111.13 Interpretation ................................................ 1111.14 Headings ...................................................... 1111.15 Time ............................................................. 1111.16 EntireAgreement ......................................... 1111.17 Enurement ................................................... 1111.18 AuthorityofDirectors,Officers,Partners andAgents ................................................... 1111.19 ElectronicCopy ............................................ 11

PART 12 – Notice ................................................................ 1212.01 NoticetoCorporation ...................................1212.02 NoticetoInsured ..........................................12

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Table of ContentsPART 1 – Interpretation ....................................................... 1 1.01 Definitions ......................................................1 1.02 CapitalizedTerms .......................................... 1

PART 2 – Scope of Insurance ............................................... 2 2.01 PeriodofInsurance ........................................2 2.02 AlternateUseException .................................2 2.03 InsurableInterest ...........................................2 2.04 SupplementalApplications .............................2 2.05 CancellationbyInsured ..................................2 2.06 SaleofLand ...................................................2 2.07 PremiumPaymentDeadline ..........................3 2.08 StrawberryEligibility .......................................3 2.09 NovelCrops ...................................................3

PART 3 – Notice of Loss and Inspection ............................. 3 3.01 GeneralNotice ...............................................3 3.02 LossesPriortoAcceptance ............................3 3.03 AppraisalofLoss ............................................3 3.04 RightofEntry .................................................3 3.05 AccesstoRecords .........................................3 3.06 NilClaimFee. .................................................3 3.07 FailuretoNotify ..............................................4 3.08 LateNotification .............................................4 3.09 NoticeofLossForm .......................................4 3.10 FinalDate .......................................................4

PART 4 – Indemnity .............................................................. 4 4.01 YieldLossIndemnity ......................................4 4.02 CalculationofIndemnity .................................4

PART 5 – Restrictions and Uninsured Causes of Loss ...... 4 5.01 ViableCropRequirement ...............................4 5.02 YieldLossIndemnityRestriction ....................4 5.03 RepresentativeStrip(s) ..................................5 5.04 FireLossRestriction ......................................5 5.05 LessThan5%Damage ..................................5

PART 6 – Harvesting Bonus ................................................. 5 6.01 HarvestingBonus ...........................................5

PART 7 – Right of Appeal .................................................... 6 7.01 AssessmentofLossandRighttoAppeal .......6 7.02 AppealFee .....................................................6 7.03 AppealTribunal ..............................................6

PART 8 – Assignment ........................................................... 6 8.01 AssignmentofIndemnity ................................6 8.02 AssignmentofContract ..................................7

PART 9 – Subrogation .......................................................... 79.01 RecoveryRight ...............................................79.02 TransferofRecoveryRight ............................79.03 ThirdPartyCompensation .............................79.04 Limitation ........................................................7

PART 10 – Continuous Hail Insurance Option.................. 710.01 Eligibility .........................................................710.02 Landlords .......................................................810.03 SelectionandEffect .......................................810.04 MaintainAgriInsuranceCoverage ..................810.05 OptionalCHIOCropCoverage ......................810.06 SelectionofOptionalCHIOCropforCoverage .. 810.07 Reseed ...........................................................910.08 NoCancellation ..............................................910.09 AddingorDeletingAcreage ...........................9

PART 11 – General ............................................................... 911.01 Misrepresentation ..........................................911.02 CreditPrivileges .............................................911.03 IndemnitiesAppliedtoDebt ...........................911.04 Waiver ............................................................911.05 NoSubsequentWaiver ................................1011.06 DeadlineforActionAgainstCorporation ......1011.07 ClaimOverpayments ...................................1011.08 EnforcementFees ........................................1011.09 NoWithholdingbyInsured ...........................1011.10 Taxes ............................................................1011.11 Severability ..................................................1011.12 BusinessDay ............................................... 1111.13 Interpretation ................................................ 1111.14 Headings ...................................................... 1111.15 Time ............................................................. 1111.16 EntireAgreement ......................................... 1111.17 Enurement ................................................... 1111.18 AuthorityofDirectors,Officers,Partners andAgents ................................................... 1111.19 ElectronicCopy ............................................ 11

PART 12 – Notice ................................................................ 1212.01 NoticetoCorporation ...................................1212.02 NoticetoInsured ..........................................12

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Hail Insurance Contract Terms and ConditionsPart 1 – Interpretation1.01 Definitions.InthisContract:

“AgriInsurance Contract”meansthecontractofinsuranceissuedto the Insured pursuant to the AgriInsurance Regulation underTheManitobaAgriculturalServicesCorporationActas itmaybeamendedorreplacedfromtimetotime;

“Application” means theapplication foraContract,on the formand in themanner that theCorporationmakesavailable for thatpurpose from time to time,made by the Insured or some otherpersonauthorizedinthatbehalf;

“Contract” means this Hail Insurance Contract, the ApplicationandtheHailInsuranceRegulationunderTheManitobaAgriculturalServicesCorporationAct;

“Continuous Hail Insurance Option” means the selectionmadebyan InsuredunderSection10.01,provided the Insuredotherwisequalifiestomakesuchselection,tohavethisContractautomaticallyrenewfromCropYeartoCropYear;

“Harvesting Bonus”meanstheamountbywhichthepercentageofyieldlossordamagecauseddirectlybyhailorfireorbothasdeterminedbytheCorporationexceeds70%,toamaximumof10percentagepoints;

“Insured”meansaPerson towhomaHail InsuranceContracthasbeenissued;

“Insured Crop” means an Insurable Crop insured under thisContract;

“Optional CHIO Crop”means a crop that is not eligible to beinsured under the Continuous Hail Insurance Option unless itis specifically selected by the Insured to have the ContinuousHail Insurance Option apply to it, namely, rutabagas, CookingOnions, parsnips, carrots, Other Onions, cabbage, cauliflower,broccoli,sweetcorn,strawberries,peppers,leeks,WinterSquash,pumpkins, Greenfeed, Silage Corn, Processing Potatoes, TablePotatoes, Select Hay Types, Basic Hay, Pedigreed TimothySeed,AlfalfaSeed,PerennialRyegrassSeed,AnnualRyegrassSeed,tallfescueseed,OrganicCropsorsuchothercropastheCorporationmaydeclarefromtimetotimeandnotifytheInsured(in such manner as the Corporation determines) as being anOptionalCHIOCrop;

“Yield Loss Indemnity” means thepercentageofyield lossordamage adjusted for anyHarvesting Bonus payable under thisContract, to a maximum of 100%, multiplied by the Acreageaffected by the loss or damage, all as established by theCorporation, multiplied by the dollar selection for the affectedInsuredCrop.

1.02 Capitalized Terms. Capitalized termswhich are not defined inthisContract have the samemeaningasgiven to such terms in theAgriInsuranceContract.

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Part 2 – Scope of Insurance2.01 Period of Insurance. SubjecttothetermsandconditionsofthisContract,insuranceisprovidedbytheCorporationforlossordamagecauseddirectlybyhailorfireorboththatoccurstoInsuredCropsfromthe effective time specified in theApplication, or if the Insured hasselectedtheContinuousHail InsuranceOptionand it isstill ineffect,fromthebeginningoftheapplicableCropYear,ineachcaseuntiltheearlierof:

(i) thetimetheInsuredCropisHarvested,or

(ii) midnight on October 21 of the year in whichinsurance under this Contract is to apply.

2.02 Alternate Use Exception. Notwithstanding Subsection 2.01(i),wherean InsuredCrop isput toanalternateuseandsuchalternateuse is for thepurposeofcutting the InsuredCrop forgreenfeed, theinsurance shall continue until the greenfeed is removed from thewindrowbybalingorothermeans.

2.03 Insurable Interest. ThisContractisvoidif,atthetimeatwhichitwouldotherwisetakeeffect,theInsuredhasnoinsurableinterestintheInsuredCropselectedforhailinsuranceunderthisContract.

2.04 Supplemental Applications. Ifmore thanoneApplication foraContractiscompletedbyanInsuredandacceptedbytheCorporation,andtheInsuredhasmademorethanonedollarselectionforanytypeofInsurableCrop,thedollarselectioninthelastApplicationmadebytheInsuredshallbeappliedforthepurposesofcalculatinganyYieldLossIndemnitypayablethereafter,providedthatoncelossordamagehasoccurredinrespectofanInsuredCrop,theInsuredshallnotbeentitledtochangethedollarselectionforthatInsuredCroptoadollarselectionlessthanthedollarselectionineffectatthetimethelossordamageoccurred.ProvidednolossordamagehasoccurredinrespectoftheInsuredCrop,thePremiumpayablebytheInsuredshallbedeterminedon the basis of the last dollar selectionmade by the Insured.Oncea Yield Loss Indemnity is paid or payable in respect of an InsuredCrop,theCorporationisdeemedtohaveearnedthefullamountofthePremiumpaidorpayableinrespectofthatInsuredCrop.IftheInsuredhasselectedtheContinuousHailInsuranceOption,thenthisSectiondoesnotapplytotheInsuredCropsinsuredundertheContinuousHailInsuranceOption.

2.05 Cancellation by Insured. Subject to Section 10.08, if thisContractiscancelledinaccordancewithitstermsandprovidednoYieldLoss Indemnityhasbeenpaidor ispayableunder thisContract, theCorporationshallbedeemedtohaveearnedtheshortdatepremiumforthetimetheContracthasbeeninforce,allassetforthintheShortDateCancellationTablecompiledbytheCorporation.TheContractwillbedeemedtohavebeencancelledeffectivefromthepost-markeddayofmailingofthenoticeofcancellation,orifthenoticeofcancellationisdeliveredinpersonorsentbyfacsimiletransmission,uponthedayofactualreceiptbytheCorporation.

2.06 Sale of Land. IfanInsuredsellsalloraportionof theAcreageinsuredunderthisContract,theinsurancefortheInsuredCropsonthatAcreageso transferred forwhichnoYieldLoss Indemnity ispayableisdeemedcancelledeffective fromthedateofsuch transferand theCorporationshallbedeemedtohaveearnedtheshortdatepremiumforthetimetheContracthasbeeninforceforthatAcreage,allassetforthintheShortDateCancellationTablecompiledbytheCorporation.

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2.07 Premium Payment Deadline. All amounts owing under thisContractby the Insured to theCorporationmustbepaid in fullonorbeforeMarch31of theyear following theyear inwhich insurance isto apply, failing which the Corporationmay refuse to provide a HailInsurance Contract to that Insured and cancel the AgriInsuranceContractofthatInsured.IftheContinuousHailInsuranceOptionhasbeenselectedandtheamountsreferredtoabovehavenotbeenpaidby thedateprovided, then theCorporationmaycancel thisContractandtheAgriInsuranceContractofthatInsured.

2.08 Strawberry Eligibility. Strawberriesareeligibleforhailinsuranceunder this Contract notwithstanding they are not an Insurable CropundertheAgriInsuranceContract,butonlywhenthestrawberryplanthasestablishedandisnolongereligibleforStrawberryEstablishmentInsurance under the AgriInsurance Contract. Any reference in thisContract to an Insurable Crop or Insured Crop shall be deemed toincludestrawberries.

2.09 Novel Crops.NovelCropsarenoteligiblefortheContinuousHailInsuranceOption.

Part 3 – Notice of Loss and Inspection3.01 General Notice. If an InsuredCrop is lost or damagedby hailor fire or both, the Insured shall notify the Corporation within threebusinessdaysofthelossordamageoccurring,statingwhenandhowthelossoccurredand,ifcausedbyhail,thedayandhourofthestormand, if caused by fire, how the fire originated, so far as the Insuredknowsorbelieves.TheInsuredshallalsostatetheestimateddamagetoeachportionoftheInsuredCrop.

3.02 Losses Prior to Acceptance. If loss or damage occurs to anInsuredCropbyreasonofhailorfireorbothafter thesubmissionoftheApplication,butbeforetheContractcomesintoeffect,theInsured,within three days of such loss or damage occurring, shall notify theCorporation in writing of the percentage of loss or damage to eachInsuredCropforwhichanApplicationhasbeenmade.Atthattime,theInsuredmayrequestthattheApplicationofthatInsuredbecancelled,whichtheCorporationshallacceptwithoutchargetotheInsured.

3.03 Appraisal of Loss.Uponreceiptofnoticeof lossordamageinaccordancewithSection3.01,theCorporationshallappointanadjustorwhoshallinspectthelossordamagewithin30daysoftheoccurrenceofsuchlossordamage.Incircumstanceswheretheamountoflossordamagecannotbedeterminedwithinthe30days,theCorporationmaydefersuchclaimuntilthelossordamagecanbeaccuratelydeterminedtothesatisfactionoftheCorporation.

3.04 Right of Entry. After any lossor damage to the InsuredCrop,theCorporationshallhaveimmediaterightofaccessandentrytotheAcreageaffectedbythelossordamagetoenabletheCorporationtomakeanestimateofthelossordamage.

3.05 Access to Records. OndemandbytheCorporation,theInsuredshallfurnishtheCorporationanditsagentsandemployeeswithsuchinformation relating to the loss or damage as the Corporation mayrequire.

3.06 Nil Claim Fee. Ifno lossordamage fromhailorfireorboth isfoundby theCorporation onaField of an InsuredCrop forwhich aclaim is made, the Corporation may require the Insured to pay theCorporationsuchfee(s)astheCorporationdeterminesisappropriateforeachfarmvisitandassessmentperformed.

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3.07 Failure to Notify. IftheInsuredhasfailedtonotifytheCorporationofanylossordamageasrequiredbythisContract,whetherornotthefailuretonotifyistotheprejudiceoftheCorporation,theCorporationmayrefusetopayaYieldLossIndemnity.

3.08 Late Notification.AnynoticeacceptedbytheCorporationafterthedatesspecifiedforreceiptinthisContractwillbewithoutprejudicetoanyrightstheCorporationmayhavetodenyaYieldLossIndemnity.

3.09 Notice of Loss Form. AllnoticesrequiredorpermittedtobegivenbyanInsuredunderthisContractshallbeontheformrequiredbytheCorporationforthatpurpose.

3.10 Final Date.AnyrequestforpaymentunderSection5.02(ii)mustbemadebytheInsuredonorbeforeOctober21oftheyearinwhichthelossordamageoccurred.RequestsnotreceivedbythatdatewillnotbeconsideredbytheCorporationforanyex gratia paymentthattheCorporationmayhaveotherwisemadeunderthatSection.

Part 4 – Indemnity4.01 Yield Loss Indemnity.SubjecttothetermsandconditionsofthisContract,wheretheCorporationestablishesthatlossordamagehasoccurredtoanInsuredCropasadirectresultofhailorfireorboth,theInsuredisentitledtoaYieldLossIndemnity.

4.02 Calculation of Indemnity.IfanInsuredCrophasbeenpreviouslydamagedbyhailorfireorboth,thepercentageofyieldlossordamageshallbereducedbyanyprioryield lossordamage incalculatingtheYieldLossIndemnitythatispayable.

Part 5 – Restrictions andUninsured Causes of Loss5.01 Viable Crop Requirement. If, intheopinionoftheCorporation,therewasnotsufficientProductionpotentialbeforetheoccurrenceoflossordamagebyhailorfireorbothtowarrant leavingtheField,oranyportionthereof,of theInsuredCropforcropproduction,noYieldLossIndemnityshallbepayable,andhail insuranceonthatField,oranyportionthereof,ofthatInsuredCropshallbedeemedterminatedonthedaybeforethedayonwhichthelossordamageoccurred.Inthatevent,theCorporationshallbedeemedtohaveearnedtheshortdatepremiumforthetimetheContracthasbeeninforce,allassetforthintheShortDateCancellationTablecompiledbytheCorporation.

5.02 Yield Loss Indemnity Restriction.ThisContractdoesnotinsureagainst,andnoYieldLossIndemnitymaybepaidforanInsuredCropif, intheopinionoftheCorporation,thelossordamagedidnotresultdirectlyfromhailorfireorboth.Forgreatercertaintyand,withoutlimitingthegeneralityoftheforegoing,

(i) thisContractonlyinsuresagainstphysical lossordamagetoan InsuredCropasadirect resultofhailorfireorbothapparent at the time of inspection by the Corporation,

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(ii) no Yield Loss Indemnity is payable under this Contractfor loss or damage to an Insured Crop as a result ofdisease,whetherdirectlyorindirectlycausedbyhail,orasa result of frost, unless in the opinion of theCorporation,the maturity of the Insured Crop has been delayed as aresult of hail and therefore has been subjected to lossor damage due to frost which otherwise would not haveoccurred, in which case the Corporation may make an ex gratia payment in respectof such lossordamage,butonly to amaximum of the coverage remaining under thisContract in respect of the affected Insured Crop, and

(iii) no Yield Loss Indemnity shall be paid for loss ordamage caused by the Insured Crop being over ripe,

allasdeterminedbytheCorporation.

5.03 Representative Strip(s).IflossordamageoccurstoanInsuredCropasaresultofhailorfireorbothwhilethatInsuredCropisstandingoriscutandreadyforHarvesting,subjecttonoticeoflossordamagebeinggiveninaccordancewiththetermsofthisContract,theInsuredmayproceedtoharvestorreseedthatInsuredCroporputtheaffectedAcreage toanotheruse,provided thatone representativestripofnolessthan10feetinwidtheither,

(i) thefull lengthof theFieldforeach40acresor lessof theInsuredCropwhichhasbeendamagedorlost,or

(ii) one-third the distance in from the edge of the Field andcompletelyaroundtheField,

is left for inspectionbytheCorporation.If theInsuredmakesaclaimunder this Contract and the Insured proceeds to harvest or reseedthat InsuredCroporput theaffectedAcreagetoanotherusewithoutleaving the representative strip(s) contemplated by this Section, theCorporation may refuse to pay any Yield Loss Indemnity otherwisepayabletotheInsured.

5.04 Fire Loss Restriction. ThisContractdoesnotinsureagainst,andnoYield Loss Indemnity shall be paid for an InsuredCrop if, in theopinionoftheCorporation,thelossordamageoccurredasaresultoffirestartedbytheInsuredortheagents,servantsoremployeesoftheInsured,unlesssuchfirewas lawfullystartedand incompliancewiththerequirementsofallapplicablelaw.

5.05 Less Than 5% Damage.ForaYieldLossIndemnitytobepayable,the percentage of yield loss established by the Corporation for theaffectedAcreageorportionthereofasdeterminedbytheCorporationmustbe5%ormore.

Part 6 – Harvesting Bonus6.01 Harvesting Bonus.IflossordamagetoanInsuredCropoccursdirectlyasaresultofhailorfireorbothandtheyieldlossordamageexceeds 70% (as determined by the Corporation) on any portionof the InsuredAcreage of that Insured Crop (as determined by theCorporation),thepercentageofyieldlossordamageforthepurposesofcalculatingYieldLossIndemnityshallbeincreasedbytheHarvestingBonus.

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Part 7 – Right of Appeal7.01 Assessment of Loss and Right to Appeal.Upontheassessmentofthepercentageofyieldloss(includinganyHarvestingBonus)andtheamountoftheAcreageaffectedbythelossordamage,theCorporationwill provide the Insuredwith confirmationof suchassessment. If theInsuredandtheCorporationcannotagreeastoanymatteraddressedin theassessmentwhichmay,byvirtueofTheManitobaAgriculturalServices Corporation Act, be appealed to the Appeal Tribunal, theInsuredmust,withinsevendaysofreceiptofnoticeoftheassessmentfromtheCorporation,appealbywrittennoticeofappealtotheAppealTribunal,andshalldeliveracopyoftheappealtotheCorporation.IftheInsuredfailstosoappealwithintheprescribedsevendaytimeperiod,the Corporation’s assessment of the loss shall be final and bindingupon the Insured and no appeal is available to theAppealTribunal.Theex gratiapaymentcontemplatedunderSection5.02,ifmade,isavoluntaryactof theCorporationwithout liabilityor legalobligationonthepartoftheCorporation,andassuch,thepaymentortheomissiontomakethepaymentisnotpartoftheassessmentreferredtointhisSectionandhence,ineithercase,isnotappealablebytheInsured.

7.02 Appeal Fee.At the time of filing an appeal, the Insured shalldepositwith theAppealTribunalsuchfeeas isrequiredfromtimetotimepursuanttoTheManitobaAgriculturalServicesCorporationActassecurityforthecostsoftheappeal.

7.03 Appeal Tribunal. TheAppealTribunalhasanabsolutediscretioninmaking itsdecision,which isfinalandbindingonboththeInsuredandtheCorporationandisnotsubjecttoappeal.

Part 8 – Assignment8.01 Assignment of Indemnity. The Insured may assign all or aspecified dollar amount of the right to indemnification under thisContractbut,

(i) anassignment isnotbindingon theCorporation,andno paymentofindemnityshallbemadetoanassignee,unless:

A. the assignment is made on a form acceptable to theCorporationandisaccompaniedbythefeestipulatedbysuchform,and

B.the Corporation gives its acceptance to theassignmentinwriting;and

(ii) any assignmentmade in accordancewith the foregoing hasthe effect of assigning the same rights of indemnification oftheInsuredunderallcontractsofinsurance(including,withoutlimitation, the AgriInsurance Contract of the Insured, butexcludinganycontractof insurancebetweentheInsuredandtheCorporationundertheWesternLivestockPriceInsuranceProgram)betweentheInsuredandtheCorporation.

Anassigneeshallhave thesame rightas the Insured tofileaclaimfor loss or damage to the Insured Crop. Subject to the Corporationbeingprovidedwithwrittenevidenceas toanypostponementor likeagreementtowhichtheInsuredisaparty,ifmorethanoneassignmentis received by the Corporation, the assignment first received andaccepted by the Corporation shall have priority over subsequentassignmentsreceived.

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8.02 Assignment of Contract.ExceptasspecificallyprovidedinthisContract,nopartofthisContractoranyinterest inthisContractmaybe assigned by the Insured without the prior written consent of theCorporation,whichconsentmaybewithheldbytheCorporationatitsdiscretion.

Part 9 – Subrogation9.01 Recovery Right. The Insured shall not be entitled to anyindemnityunder thisContract forany loss if theInsuredhasdoneordoesanythingtoprejudicetheInsured’srightofrecoveryagainstanypersonforsuchloss.

9.02 Transfer of Recovery Right. IftheCorporationhaspaidaclaimunderthisContract,theCorporationissubrogatedtotheextentthereoftoall rightsof recoveryof the InsuredagainstanyPerson,andmaybringaction in thenameof the Insuredagainst suchPerson for thefullamount toenforcesuch rightsof recovery.TheCorporationshallhavecompleteandsolecontrolover theconductofanysuchactioncommencedbytheCorporation,includingtheappointmentofcounsel.At the request of the Corporation, the Insured shall do whateveris necessary to secure such rights of recovery including, withoutlimitation,assistingtheCorporation in theenforcementofsuchrightsincluding,withoutlimitingthegeneralityoftheforegoing,cooperationinestablishingthefacts,securingandgivingevidenceandobtainingtheattendanceofwitnessesand,ifanactioniscommenced,immediatelyprovidingtotheCorporationeverythingreceivedinwritingconcerningtheclaim,includinglegaldocuments,andshalldonothingtoprejudicetheCorporation’srightsincluding,withoutlimitingthegeneralityoftheforegoing,notinterferinginanysettlementorlegalproceedings.

9.03 Third Party Compensation. Where theCorporation is liable topayaclaimunderthisContract,buttheInsuredhasbeencompensatedfor the loss by anotherPerson, theCorporationmay deduct the netamount of such third party compensation, after deducting the costsof recovering such compensation, from the amount of the indemnityotherwisepayablebytheCorporationunderthisContract.

9.04 Limitation. The net amount recovered from a third party, afterdeductingthecostsofrecovery,shallfirstberetainedbytheCorporationuptotheamountoftheindemnitypaidbytheCorporationtotheInsuredandthebalanceofsuchamountrecoveredshallbepaidtotheInsured.

Part 10 – Continuous Hail Insurance Option10.01 Eligibility.IfanInsuredhasselectedallInsurableCrops(otherthanOptional CHIOCrops) under theAgriInsuranceContract at the80% Coverage Level or higher as offered by the Corporation, or isinsuredunder theVegetableAcreageLossInsuranceSupplementaryTermsandConditions,thenthatInsuredmayselecttheContinuousHailInsuranceOptionunderthisContract.IftheInsuredselectsanOptionalCHIOCropfortheContinuousHailInsuranceOptionunderSection10.06,thenthatOptionalCHIOCropmustalsohavebeenselectedundertheAgriInsuranceContractatthe80%CoverageLevelorhigherasofferedby the Corporation or is insured under the VegetableAcreage LossInsuranceSupplementaryTermsandConditions.

10.02 Landlords. A Landlord under one or more AgriInsuranceContractsmayselecttheContinuousHailInsuranceOptioneveniftheTenant(s)(beinganInsuredunderthisContract)ofthatLandlordhasnotselectedtheContinuousHailInsuranceOptionorisnototherwiseeligiblefortheContinuousHailInsuranceOption,buttheLandlordmustpaythePremiumsandAdministrationFeespayableinrespectofthatselection. If theContinuousHail InsuranceOption isselectedby theLandlordinrespectofoneAgriInsuranceContract,thatselectionshallapplytoallAgriInsuranceContractsofthatLandlord.

10.03 Selection and Effect. The Continuous Hail InsuranceOption must be selected on or before March 31 of the Crop Yearimmediately preceding the Crop Year in which the Continuous HailInsurance Option is to apply. Once the Continuous Hail InsuranceOption has been selected, all Insurable Crops (excluding OptionalCHIO Crops, unless such Optional CHIO Crop is selected by theInsured for theContinuousHail InsuranceOption) insuredunder theAgriInsuranceContractorundertheVegetableAcreageLossInsuranceSupplementaryTermsandConditionsareautomaticallyinsuredunderthis Contract at the highest dollar amount offered. In that case andsubjecttoSection10.04,thisContractshallcomeintoeffectonApril1 oftheCropYearimmediatelyfollowingtheyearinwhichtheselectionwas made and shall automatically renew from Crop Year to CropYearthereafterforallsuchInsurableCrops(excludingOptionalCHIOCrops,unlesssuchOptionalCHIOCropisselectedbytheInsuredfortheContinuousHailInsuranceOption),unlessnoticeofterminationinwritingisgivenbytheInsuredortheCorporationonorbeforeMarch31oftheyearpriortotheapplicableCropYear.AllselectionsinrespectoftheContinuousHailInsuranceOptionmaybemade(i)inwriting;(ii)viaanonlineprivateaccessportalmaintainedforthebenefitofeachInsuredbytheCorporationatitswebsite;or(iii)bytelephonebyanInsured,butanInsured'salternatesigningauthority,ifany,maynotmakeselectionsbytelephone.IfanInsuredmakesselectionsorchangesinselectionsby telephone,all information receivedby theCorporationandshownin therecordsof theCorporationshallbeconclusiveevidenceof theinformationgivenoverthetelephonebytheInsuredtotheCorporationandacopyoftheselectionsorchangesinselectionsafteracceptancebytheCorporationwillbemailedtotheInsured.

10.04 Maintain AgriInsurance Coverage. Subject toSection10.02,anInsuredmustmaintaintheselectionofallInsurableCrops(excludingOptional CHIO Crops, unless such Optional CHIO Crop is selectedby the Insured for the Continuous Hail InsuranceOption) under theAgriInsuranceContractatthe80%CoverageLevelorhigherasofferedbytheCorporationormaintaininsuranceundertheVegetableAcreageLoss Insurance Supplementary Terms and Conditions in order tocontinuetobeeligiblefortheContinuousHailInsuranceOption.

10.05 Optional CHIO Crop Coverage. If the Insured requires hailinsurance for any Optional CHIO Crop not otherwise selected undertheContinuousHail InsuranceOption,thatInsuredmustcompleteanApplicationineachCropYearforsuchcropsandtheprovisionsofthisPartdonotapplytosuchOptionalCHIOCrops.

10.06 Selection of Optional CHIO Crop for Coverage. NotwithstandingSection10.01,butsubjecttoSections10.03and10.04,anInsuredmayselectanyoneormoreoftheOptionalCHIOCropsfortheContinuousHail InsuranceOption, inwhichcase theprovisionsofthisPartshallapplytosuchOptionalCHIOCrops.

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10.02 Landlords. A Landlord under one or more AgriInsuranceContractsmayselecttheContinuousHailInsuranceOptioneveniftheTenant(s)(beinganInsuredunderthisContract)ofthatLandlordhasnotselectedtheContinuousHailInsuranceOptionorisnototherwiseeligiblefortheContinuousHailInsuranceOption,buttheLandlordmustpaythePremiumsandAdministrationFeespayableinrespectofthatselection. If theContinuousHail InsuranceOption isselectedby theLandlordinrespectofoneAgriInsuranceContract,thatselectionshallapplytoallAgriInsuranceContractsofthatLandlord.

10.03 Selection and Effect. The Continuous Hail InsuranceOption must be selected on or before March 31 of the Crop Yearimmediately preceding the Crop Year in which the Continuous HailInsurance Option is to apply. Once the Continuous Hail InsuranceOption has been selected, all Insurable Crops (excluding OptionalCHIO Crops, unless such Optional CHIO Crop is selected by theInsured for theContinuousHail InsuranceOption) insuredunder theAgriInsuranceContractorundertheVegetableAcreageLossInsuranceSupplementaryTermsandConditionsareautomaticallyinsuredunderthis Contract at the highest dollar amount offered. In that case andsubjecttoSection10.04,thisContractshallcomeintoeffectonApril1 oftheCropYearimmediatelyfollowingtheyearinwhichtheselectionwas made and shall automatically renew from Crop Year to CropYearthereafterforallsuchInsurableCrops(excludingOptionalCHIOCrops,unlesssuchOptionalCHIOCropisselectedbytheInsuredfortheContinuousHailInsuranceOption),unlessnoticeofterminationinwritingisgivenbytheInsuredortheCorporationonorbeforeMarch31oftheyearpriortotheapplicableCropYear.AllselectionsinrespectoftheContinuousHailInsuranceOptionmaybemade(i)inwriting;(ii)viaanonlineprivateaccessportalmaintainedforthebenefitofeachInsuredbytheCorporationatitswebsite;or(iii)bytelephonebyanInsured,butanInsured'salternatesigningauthority,ifany,maynotmakeselectionsbytelephone.IfanInsuredmakesselectionsorchangesinselectionsby telephone,all information receivedby theCorporationandshownin therecordsof theCorporationshallbeconclusiveevidenceof theinformationgivenoverthetelephonebytheInsuredtotheCorporationandacopyoftheselectionsorchangesinselectionsafteracceptancebytheCorporationwillbemailedtotheInsured.

10.04 Maintain AgriInsurance Coverage. Subject toSection10.02,anInsuredmustmaintaintheselectionofallInsurableCrops(excludingOptional CHIO Crops, unless such Optional CHIO Crop is selectedby the Insured for the Continuous Hail InsuranceOption) under theAgriInsuranceContractatthe80%CoverageLevelorhigherasofferedbytheCorporationormaintaininsuranceundertheVegetableAcreageLoss Insurance Supplementary Terms and Conditions in order tocontinuetobeeligiblefortheContinuousHailInsuranceOption.

10.05 Optional CHIO Crop Coverage. If the Insured requires hailinsurance for any Optional CHIO Crop not otherwise selected undertheContinuousHail InsuranceOption,thatInsuredmustcompleteanApplicationineachCropYearforsuchcropsandtheprovisionsofthisPartdonotapplytosuchOptionalCHIOCrops.

10.06 Selection of Optional CHIO Crop for Coverage. NotwithstandingSection10.01,butsubjecttoSections10.03and10.04,anInsuredmayselectanyoneormoreoftheOptionalCHIOCropsfortheContinuousHail InsuranceOption, inwhichcase theprovisionsofthisPartshallapplytosuchOptionalCHIOCrops.

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10.07 Reseed. If any Acreage of Insured Crop insured under theContinuousHailInsuranceOptionislostordamagedasaresultofaDesignatedPerilotherthanhailorfireorbothandtheInsuredreseedssuchAcreagetothesameordifferentInsurableCrop,thentheInsuredmustpayaPremiumunderthisContractonlyinrespectofthereseededcrop.If,however,thefirstcropwaslostordamagedasaresultofhailorfireorboth,thentheInsuredmustpayaPremiumunderthisContractforbothcrops.

10.08 No Cancellation.NotwithstandingSection2.05, but subject toSections10.03and10.04,theContinuousHailInsuranceOptioncannotbecancelledbyanInsuredunlesstheInsuredCrophasbeenDestroyedbytheInsuredortheCorporationdeemssuchcroptohavebeenDestroyedasaresultofreseedingorotherwise.Inthatcase,theCorporationshallbedeemedtohaveearnedtheshortdatepremiumforthetimethattheInsuredCrophasbeen insuredunder thisContract,allasset forth in theShortDateCancellationTablecompiledbytheCorporation.

10.09 Adding or Deleting Acreage. Theapplicableterms,conditionsandprovisionsofPart7of theAgriInsuranceContractshallapply toaddingordeletingAcreageunderthisContractwithsuchchangesasarenecessarytoreflectthedetailsofinsurancebeingprovidedunderthisContract.

Part 11 – General11.01 Misrepresentation. Any fraud, misrepresentation or willfully falsestatementmadebytheInsuredortheagentoftheInsuredin

(i)theApplication,

(ii) any other documentation provided to the Corporation in connectionwiththisContract,or

(iii)inrespectofaclaimmadeunderthisContract,

shall have theeffectof voiding theentitlementof the Insured toanyindemnityhereunder.Inanysuchcase,thefullamountofthePremiumshallbedeemedtobeearnedbytheCorporationandpayablebytheInsured.

11.02 Credit Privileges.AnInsuredwhoseAgriInsuranceContracthasbeencancelledbytheCorporationinthepastmaybedeemedbytheCorporationtobeanunsatisfactorycreditriskand,ifthisisdone,theCorporationmay,atitsoption,requiretheInsuredtopayalloranypartoftheestimatedpremiumforhailinsuranceundertheContractbeforeaHailInsuranceContractwillbeissuedtothatInsured.

11.03 Indemnities Applied to Debt. If the Insured owes theCorporationanymoney,whetherunderthisContractorunderanyotherprogramadministeredbytheCorporation,theCorporationmaydeducttheamountowed fromanymoneypayable to the Insuredunder thisContract.

11.04 Waiver. The failure of the Corporation to insist on the strictobservance or performance of any covenant in this Contract shallnot be deemed to constitute a waiver of the Corporation’s rights toinsistonaperformanceinfullandinatimelymannerofallcovenantscontained herein, and any suchwaiver, in order to be binding upontheCorporation,must be expressed inwriting and signed by a dulyauthorized representative of the Corporation. No waiver of anyprovisions, conditions or covenants shall be deemed to be awaiverof the right of the Corporation to require full and timely compliance

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with the same terms, conditions or covenants thereafter orwith anyotherterms,conditionsorcovenantsofthisContractatanytime.Therights of theCorporation under this Contract are cumulative and noexercise or enforcement by the Corporation of any right or remedyunderthisContractshallprecludetheexerciseorenforcementbytheCorporationofanyotherrightorremedyunderthisContractorwhichtheCorporationisotherwiseentitledbylawtoenforce.

11.05 No Subsequent Waiver. The full or partial waiver by theCorporationatanytimeofanyofitsrightsunderthisContract,includingitsrightswithrespecttoabreachorviolationofordefaultunderanyprovisionofthisContract,willnotoperateasawaiverofanyotherrightorofanyotherprovisionofthisContractorofanysubsequentbreachorviolationthereofordefaultthereunder.Ineachcase,thatwaivershallbeeffectiveonlyinthespecificinstanceandforthespecificpurposeforwhichitisgiven.

11.06 Deadline for Action Against Corporation. Any action orproceedingbytheInsuredagainsttheCorporationshallbecommencedwithin one year after the occurrence of the loss or damage and notafterwards.TheInsuredshallnotcommenceanactionorproceedingagainsttheCorporationuntiltheInsuredhasfullycompliedwithallthetermsofthisContract.

11.07 Claim Overpayments. If theCorporationoverpaysan Insuredonaclaim for indemnityunder thisContract, the Insuredshall repaysuch overpaid amount to theCorporationwithin the time prescribedbytheCorporation.TheCorporationmaychargeinterestonanyclaimoverpaymentnotpaidwithinthetimesoprescribedandonanyothercharges, fees, costs and expenses due to the Corporation by theInsuredatthesamerateasspecifiedintheApplicationforoutstandingPremiumsfortheCropYearinwhichthenoticeofclaimoverpaymentornoticeofsuchoutstandingcharges,fees,costsorexpensesisgiven.Interestshallcommenceonsuchclaimoverpaymentandsuchothercharges, fees,costsandexpenses (exceptPremiums)30daysaftersuchwrittennotificationoratanyothertimebeyond30daysasmaybespecifiedinsuchnotificationtotheInsured.

11.08 Enforcement Fees. The Insured shall pay the Corporation,upondemand,allout-of-pocketcostsandexpenses(including,withoutlimitation, legal fees on a solicitor and own client basis) incurred byor on behalf of the Corporation in connection with collecting anyindebtednessoftheInsuredtotheCorporationunderthisContract.

11.09 No Withholding by Insured. TheInsuredshallnot,ongroundsof the alleged non-performance by the Corporation of any of itsobligationshereunder,orotherwise,withholdpaymentofanyamountduetotheCorporation.

11.10 Taxes. TheInsuredshallpaytotheCorporationanamountequaltoanyandalltaxesnoworhereafterimposedon,orcollectibleby,theCorporationwithrespecttoanyamountspayablebytheInsuredtotheCorporationunderthisContract,whethercharacterizedasagoodsandservicestax,salestax,valueaddedtaxorotherwise.

11.11 Severability. If any provision of this Contract should be heldinvalidorunenforceable forany reasonwhatsoeveror toviolateanyapplicablelawofCanadaorManitoba,thisContractistobeconsidereddivisible as to such provision, and such provision is to be deemeddeleted fromthisContract,and theremainderof theContractwillbevalidandbindingasifsuchprovisionwerenotincludedinthisContract.

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11.12 Business Day. Whenever any action to be taken under thisContract isrequiredtobetakenonadayotherthanabusinessday,suchactionshallbetakenonthenextbusinessdayfollowing.Forthepurposesof thisContract, “businessday”meansadayonwhich theCorporationisopenforbusiness.

11.13 Interpretation. AnyreferenceinthisContracttoas“determined”,“established”, “approved” or “accepted” by the Corporation, or tothephrases“in itsdiscretion”, “in itsopinion”, “at itsoption”or “to itssatisfaction”orsimilarorlikephrasesshallmeanthattheCorporationmay make such determination or exercise such discretion in anabsolute,soleandunfetteredmanner.

11.14 Headings. ThedivisionofthisContractintoPartsandSectionsand the use of headings are for convenience of reference only, andshallnotaffecttheinterpretationorconstructionofthisContract.

11.15 Time.TimeshallbeoftheessenceofthisContract.

11.16 Entire Agreement. ThisContractconstitutestheentireagreementbetween the parties hereto with respect to all of thematters in thisContract and there are no representations, warranties, covenants,terms, conditions, promises, undertakings or collateral agreements,express or implied, which form part of this Contract other than asexpresslyset forth in thisContract.Theentering intoof thisContractbytheInsuredhasnotbeeninducedby,nordoestheInsuredrelyuponorregardasmaterial,anyrepresentationsorwritingswhatsoevernotincorporatedinthisContractandmadeapartofthisContract.

11.17 Enurement. This Contract shall be for the benefit of andbe binding upon the parties hereto and their respective heirs,executors, administrators, successors, permitted assigns and legalrepresentatives,asthecasemaybe.

11.18 Authority of Directors, Officers, Partners and Agents. An Insured that is a corporation (or a guarantor of an obligation of thecorporation) or a partnership or other form of entity may not assertagainsttheCorporationthat

(i) the articles, by-laws or any unanimous shareholderagreement or other agreement affecting the Insured havenotbeencompliedwith,

(ii) apersonheldoutby the Insuredasadirector,anofficer,apartneroranagentoftheInsuredhasnotbeendulyappointedorhasnoauthority toexercise thepowersandperform theduties thatare customary in thebusinessof the Insuredorusualforadirector,officer,partneroragent,

(iii) adocumentissuedbyanydirector,officer,partneroragentof the Insured with actual or usual authority to issue thedocumentisnotvalidornotgenuine.

11.19 Electronic Copy. If the Corporation offers electronic accessto thisContract,an Insuredmayelect to receivesuchaccess in lieuof a printed version in the manner and in the form required by theCorporationforthatpurpose.UponreceiptbytheCorporationofthatelection, thepostingof thisContracton theCorporation'swebsiteasa downloadable PDF shall constitute delivery to the Insured of theelectronic copy so requested and be deemed to be as effective asdeliveryofaprintedcopy.

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Part 12 – Notice12.01 Notice to Corporation. Anywritten notice to theCorporationshallbegivenbyactualdeliveryorfacsimiletransmissiontoanyofficeof the Corporation or by sending it by registeredmail to the properaddressof thatoffice.Unlessotherwiseprovidedherein,suchnoticetotheCorporationisonlyeffectiveuponactualreceiptbytheoffice.

12.02 Notice to Insured. Anywritten notice to the Insured shall be givenbyactualdeliverytotheInsured,orbysendingitbymail,addressedto the Insuredat the lastmailingaddress for the InsuredonfilewiththeCorporation,orbysending itbyemail,addressed to the Insuredat the lastemailaddressfor theInsuredonfilewith theCorporation.The Insuredconsents to thereceiptofnotices inelectronic formandacknowledges that any notice given in such formwill be consideredin “writing”. Such consent to receive notices from the CorporationelectronicallyisvaliduntilrevokedbytheInsuredbysendinganemailmessage tomailbox@masc.mb.ca,by telephoningorbyattending inpersonatthecorporateinsuranceofficeoranylocalinsuranceofficeof the Corporation. In the event of disruption or threatened disruptionof regular mail services by strike or threatened strike, all noticesshall be given, at the discretion of the Corporation, either by actual delivery to the Insured, or by email pursuant to the aforesaidmethod, or by publishing such notice in The Manitoba Co-operator or other newspaper of general circulation in Manitoba,or by the posting thereof on the Corporation’s public website at www.masc.mb.ca. Any notice given by personal delivery shall beconclusivelydeemedtohavebeengivenonthedayofactualdeliverythereof;andifgivenbymail,email,orbypublicationasaforesaid,shallbeconclusivelydeemedtohavebeengivenfivedaysafterthemailingoremailingbytheCorporationtotheInsured(whetherornottheInsuredhasreceivedorretrievedthenotice),oronthedateofpublication.

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