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Ministry
of Forests

Forest Seedling
Production Contract

______________________________________________________________________________

                    FOREST SEEDLING PRODUCTION CONTRACT

                                                                                            Contract: _________

 

THIS AGREEMENT made as of the ____ day of ________________.

BETWEEN:         HER MAJESTY THE QUEEN in Right of the Province of British Columbia
                            represented by the Director of Forest Enterprises Branch, Ministry of Forests
                            (the "Ministry"), Victoria, British Columbia (the "Director, Forest Enterprises
                            Branch")

                                                                                                       OF THE FIRST PART

AND:

                            (the "Contractor")

                                                                                                        OF THE SECOND PART

WHEREAS the Contractor has agreed with the Director, Forest Enterprises Branch to culture,
maintain and grow forest tree seedlings from the seed owned by the Ministry of Forests
in accordance with this Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of mutual
exchange by the parties, including that for payments to be made by the Director, Forest
Enterprises Branch to the Contractor the parties agree as follows:

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DEFINITIONS

1. In this Agreement:

(a) "Ministry Officer" means the person designated by the Director, Forest
     Enterprises Branch for the purpose of administering this Agreement;

(b) "Number of Trees Allotted" means the number of seedlings requested as specified
     in Schedule A;

(c) "Price per Seedling" means the "Unit Price" specified in Schedule A;

(d) "Seedlings" means forest tree seedlings;

(e) "Seedlot" means a unique identifier of a pool of genetic material;

(f) "Sowing" means sowing seed to produce seedlings;

(g) "Sowing Date" means the latest date specified in the Schedule A by which the
     crop must be sown.

(h) "Transplant Date" means the latest date specified in the Schedule A by which the
     crop must be transplanted;

(i) "First Crop Year" means the calendar year in which the Sowing Date Occurs;

(j) "Second Crop Year" means the calendar year following the First Crop Year;

(k) "Seedling Request Key" means a unique identifier of a seedling order;

(l) "Specifications" means the specifications to which crops must be grown listed in Schedule A;

(m) "Period of Delivery" means the "Period of Delivery" specified in
     Schedule A;

(n) "Lifting Window" means when seedlings are in a physiological state for
     planting or cold storage as determined by the Director, Forest Enterprises Branch; and

(o) "Delivery" means removal of seedlings from the Nursery property, nursery
     grounds and or nursery gate.

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TERM OF CONTRACT

2.     The Term of this agreement shall commence on the date first above written and expires
        on the latter of the following dates (the "Term"): the date that Ministry takes delivery of
        and accepts the contracted Seedlings; or the date that all obligations are fulfilled by the
        contractor to the satisfaction of the Director, Forest Enterprises Branch.

DESCRIPTION OF WORK

3.     The Contractor shall complete the contract in accordance with the quantities, species,
        stock types and age classes specified in the Schedule A and deliver the required number
        of Seedlings to the Director, Forest Enterprises Branch in accordance with the Period
        of Delivery and the provisions of this Agreement.

LOCATION OF WORK

4.     The Contractor's obligations under this Agreement shall be carried out at the nursery
        commonly known as ________________________________

SPECIES AND STOCK TYPE AND CONTRACT VOLUME

5.     Contract amendments in respect of species, stock-type and volume, or any one or more of
        those specifications are subject to section 27 of this contract.

SCHEDULES

6(1)    The Director, Forest Enterprises Branch shall deliver to the Contractor a Schedule A,
            substantially in the form attached to this Agreement as Schedule A, specifying the
            following information by species, stock type and age class:

(a)     the Number of Trees Allotted;

(b)     the Period of Delivery;

(c)     the Latest Sowing Date;

(d)     the Stock Type Designation;

(e)     the Transplant Date

(f)     the Seedling Stock Specifications;

(g)     the Price per Seedling; and

(h)     notwithstanding section 27, such other specifications, terms and conditions as may
        be determined by the Director, Forest Enterprises Branch.

 (2)    Schedules A and B form part of this Agreement as if set out at length in the body of this
        Agreement.

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GROWING, PACKAGING, AND DELIVERY

7(1)     The Director, Forest Enterprises Branch shall supply the necessary seeds of the specified
            provenance to produce the number of Seedlings specified in section 3 and Schedule A.

  (2)    Except as expressly provided in this Agreement, title to and property in all
           Seedlings referred to in this Agreement shall remain that of the Ministry.

8.        The Contractor at its own expense shall:

            (a)     complete the sowing not later than the Sowing Dates noted in Schedule A;

            (b)     provide all necessary materials for and carry out all aspects of the culture,
                    maintenance and growing the Seedlings;

            (c)     lift and package the Seedlings in packaging materials as specified by the Director,
                    Forest Enterprises Branch, with equipment and in a manner specified by the Director,
                    Forest Enterprises Branch, as suitable for maintaining the Specifications;

            (d)     mark shipping containers with the species, stock type, age class, seedlot number,
                    Request Key number, number of Seedlings in the shipping container, and
                    pesticide use notification specified in Schedule B;

            (e)     maintain the lifted and packaged seedlings in a dry, cool environment acceptable
                    to the Director, Forest Enterprises Branch until such time as the Director,
                    Forest Enterprises Branch takes delivery of them; and

            (f)     provide the Director, Forest Enterprises Branch with those services necessary to
                    fulfill its obligations under this Agreement.

9.     The Contractor shall, by the Period of Delivery, deliver to the Director, Forest Enterprises
        Branch Seedlings that:

(a)     match the quantities, species, stock types and age classes specified in Schedule A;

(b)     are free of any diseases, pests, chlorosis, contaminants or mechanical damage;

(c)     are in a morphological and physiological condition which is acceptable to the
        Director, Forest Enterprises Branch;

(d)     are of a size which is not less than the minimum or greater than the maximum
        specified in Schedule A; and

(e)     are treated only with pesticides approved for use on Seedlings in British
        Columbia as specified in Schedule B.

10.    The Contractor shall deliver the Seedlings meeting the Specifications, f.o.b. the nursery gate.
         The Ministry shall incur all shipping costs from the nursery gate.

11.    Risk

(1)     The Contractor shall be responsible for damage to Seed and Seedlings
          until the Director, Forest Enterprises Branch takes delivery of them.

(2)     The Nursery is responsible, until delivery, to maintain the quality and the viability
          of Seed and Seedlings (including packaged Seedlings) on the Nursery grounds.

(3)     If, at any time prior to delivery under section 10, pests, disease or contaminants
          which, in the sole discretion of the Director, Forest Enterprises Branch, pose a
          threat to the integrity, viability or utility of the Seedlings or
          accompanying planting medium are reported to the Director, Forest Enterprises
          Branch or Agriculture Canada, or if Agriculture Canada makes an order with
          respect to the transportation or disposition of the Seedlings, the Contractor
          will comply with the terms of the Director, Forest Enterprises Branch or
          Agriculture Canada's directions or orders concerning treatment, transportation
          or disposition of the Seedlings and any costs associated with such compliance
          shall be borne solely by the Contractor without right of compensation from the
          Director, Forest Enterprises Branch.

(4)     Where, following delivery, it is discovered that the Seedlings were damaged
          or their utility impaired in any manner, including through mispackaging, the
          Director, Forest Enterprises Branch may exercise any or all powers to reject the
          Seedlings or to adjust the price paid, that he possessed prior to such delivery.

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REPORTING

12.     The Contractor shall, upon request, submit to the Director, Forest Enterprises Branch:

(a)     Seedling samples, labelled and identified as required by the Director, Forest
          Enterprises Branch, of up to one-half of one percent of the species, and quantities
          specified in Schedule A; and

(b)     reports, electronic files or both setting forth details and information required by
          the Director, Forest Enterprises Branch regarding the quality and the quantities of
          the Seedlings.

13.     At the Period of Delivery, the Contractor shall provide the Director, Forest Enterprises
          Branch with a complete and itemized record of pesticide applications, including
          chemicals, rates and dates of application.

14(1)  The Contractor shall complete and submit to the Director, Forest Enterprises Branch,
           Seedling inventories acceptable to the Ministry Officer on:

(a)     May 31 of the First Crop Year, where applicable;

(b)     July 31 of the First Crop Year, where applicable;

(c)     September 30 of the First Crop Year, where applicable; or

(d)     October 31 of the First Crop Year, for Vancouver region requests, where
          applicable

(e)     May 31 of the Second Crop Year, where applicable; and

(f)     September 30 of the Second Crop Year, where applicable.

    (2)  The Contractor shall complete the Seedling inventories during the 15 days preceding the
          dates specified in section 14(1).

15.     With each shipment of Seedlings, the Contractor shall provide the Director,
          Forest Enterprises Branch, in a format specified by the Director, Forest Enterprises
          Branch, invoices showing numbers of Seedlings by Seedling Request Key, species, stock
          type, container type, age class and request agency.

ADMINISTRATION

16.     The Contractor shall perform its obligations under this Agreement to the satisfaction of
          the Ministry Officer.

17.     The Ministry officer shall be given reasonable access to the premises of the Contractor
          to carry out inspections, including verification of sowing, seedling inventories,
          inspections and audits at the time of lifting and packaging of the Seedlings.

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STORAGE AND TRANSPORTATION

18.     The Contractor shall not lift, package, store or transport any of the Seedlings until
          the Contractor has received authorization from the Ministry Officer.

19. The Director, Forest Enterprises Branch shall:

(a) place lifting and packaging orders with the Contractor not less than 5 days prior
to delivery of Seedlings except in exceptional circumstances; and

(b) arrange for all Seedling transportation unless other arrangements have been
agreed to by the Contractor and the Director, Forest Enterprises Branch.

PAYMENT FOR SERVICES

20 (1) In accordance with the provisions of this section, the Director, Forest Enterprises
          Branch shall pay to the Contractor the Contracted Price per Seedling for each Seedling
          delivered to the Director, Forest Enterprises Branch during the Period of Delivery that
          meets the Specifications to the amount in Schedule A.

    (2) Upon receipt of written accounts submitted by the Contractor in accordance with the
          provisions of section 20(3), the Director, Forest Enterprises Branch shall make
          payments to the Contractor as an advance against the contracted price due to the
          Contractor upon delivery of Seedlings meeting the Specifications during the
          Period of Delivery.

    (3) The Contractor shall submit written accounts to the Director, Forest Enterprises Branch
          as follows:

(a)     One year old seedlings

(i) upon completion of sowing satisfactory to the Ministry Officer, in an amount
equal to the product of the number of Seedlings sown; and 35% of the Price per
Seedling;

(ii) upon completion of the May 31 Seedling Inventory for summer plant Seedlings
(Period of Delivery between June 15 and September 14);

or upon completion of the July 31 Seedling Inventory for fall plant Seedlings
(Period of Delivery between Sept. 15 and Oct. 31);

or upon completion of the September 30 Seedling Inventory for spring/winter plant
Seedlings,

in an amount equal to the product of the number of Seedlings which the inventory
indicates will meet the Specifications during the Period of Delivery to the requested
volume; and 25% of the Price per Seedling;

        (b) Two year old seedlings:

(i) upon completion of sowing satisfactory to the Ministry Officer, in an amount
equal to the product of the number of Seedlings sown; and 35% of the Price per
Seedling;

(ii) upon completion of the September 30 Seedling Inventory in the First Crop Year,
in an amount equal to the product of the number of Seedlings which the inventory
indicates will meet the Specifications during the Period of Delivery to the requested
volume; and 20% of the Price per Seedling;

(iii) upon completion of the May 31 Seedling Inventory in the Second Crop Year, in
an amount equal to the product of the number of Seedlings which the inventory
indicates will meet the Specifications during the Period of Delivery to the requested
volume; and 15% of the Price per Seedling;

    (4) Subject to section 20(5) and upon receipt by the Director, Forest Enterprises Branch of:

(a) a written statement from the Contractor specifying the number of Seedlings delivered that
      meet the Specifications; and

(b) an audit report by the Ministry officer;

          the Director, Forest Enterprises Branch shall make a final payment to the Contractor for
          the Seedlings delivered in an amount equal to the product of the Price per Seedling and
          the number of Seedlings delivered less any advance payments made to the Contractor
          under section 20(3) plus penalties resulting from audit.

    (5) Notwithstanding any other terms of this Agreement, if at any time the total of the
          payments per Seedling Request Key made to the Contractor under sections 20(3) and
          (4) exceed the product of the Price per Seedling and

(a)     the number of Seedlings which the seedling inventories indicate will meet the
         Specifications by the Time of Delivery; or

(b)     the number of Seedlings delivered minus the rejected Seedlings resulting from
         audit and Seedlings pursuant to section 11(4);

          the Contractor shall immediately reimburse the Director, Forest Enterprises Branch the
          amount of the excess payment.

21. The Director, Forest Enterprises Branch is under no obligation to pay the Contractor for
      the services provided by it under the terms of this Agreement in respect of Seedlings
      which do not meet the Specifications during the Period of Delivery or for Seedlings
      which have been lifted, packaged, stored or transported without prior authorization as
      stated in section 18.

22 (1) The Director, Forest Enterprises Branch may, in his sole discretion, pay the Contractor
          for services provided by it under the terms of this Agreement in respect of Seedlings not
          meeting the Specifications during the Period of Delivery if:

(a)     the Seedlings meet the Specifications through continued growth, culture and
         maintenance by the Contractor at its expense;

(b)     the Seedling height exceeds the maximum specified in Schedule 'A' the root
         collar diameter must be greater than the target root collar diameter specified in
         Schedule 'A';

(c)     the Seedlings are separated into different size classes through resorting at the
         Contractor's expense; or

(d)     the Seedlings are accepted by the Director, Forest Enterprises Branch as
         transplant stock.

    (2) If the Director, Forest Enterprises Branch takes delivery of any of the Seedlings
         described in sections 22(1)(a) (b) and (c), the Director, Forest Enterprises Branch shall
         pay to the Contractor the Contract Price in respect of each Seedling delivered equal to:

(a)     Fee = the Price per Seedling multiplied by the lesser of:

(i)    the new minimum height specified by the Director, Forest Enterprises
       Branch divided by the minimum height specified in Schedule A; and

(ii)    the new minimum root collar diameter specified by the Director,
        Forest Enterprises Branch divided by the minimum root collar
        diameter specified in Schedule A;

for Seedlings below the standards specified in the Schedule A; or

(b)     the price per seedling for Seedlings above the standards specified in the
          Schedule A, but not greater than the new maximum height and the new root
          collar diameter specified by the Director, Forest Enterprises Branch.

    (3) If the Director, Forest Enterprises Branch takes delivery of any of the Seedlings
         described in section 22(1)(d), the Director, Forest Enterprises Branch shall pay to the
         Contractor a fee for service in respect of each Seedling delivered in an amount agreed to
         by the parties.

    (4) If within 30 days of the Period of Delivery, the Director, Forest Enterprises Branch
          chooses not to pay for services provided in respect of the Seedlings referred to in section
          22(1), upon notification by the Directory, Forest Enterprises Branch, the title to and
          property in those Seedlings shall vest in the Contractor and the Contractor may dispose
          of the Seedlings in its sole discretion.

    (5) If the Director, Forest Enterprises Branch is unable to take delivery of Seedlings
          meeting the quantities, species, stock types, age classes, and Specifications specified in
          the Schedule A during the Period of Delivery, the Director, Forest Enterprises Branch
          shall pay to the Contractor a fee per seedling equal to 5% of the Price per Seedling for
          each month, or part there of, for the time period between the Period of Delivery and the
          time the Contractor receives authorization to lift as stated in section 18.

23 (1) The Director, Forest Enterprises Branch is under no obligation to pay the Contractor for
          the services provided by it under the terms of this Agreement in respect of Seedlings in
          excess of the Number of Trees Allotted. If the Contractor delivers the quantities of
          Seedlings by species, stock type and age class as specified in Schedule A and has excess
          Seedlings of that species, stock type and age class meeting the Specifications during the
          Period of Delivery, the Contractor shall at the time of delivery notify the Director,
          Forest Enterprises Branch of the excess and the Director, Forest Enterprises Branch
          may, in his sole discretion, within 30 days after the acceptance of delivery notify the
          Contractor of acceptance of the excess Seedlings and pay in accordance with section
          20(4).

    (2) If the Director, Forest Enterprises Branch does not, within 30 days after the acceptance
          of delivery, agree to pay a fee for services provided by the Contractor in respect of the
          Seedlings referred to in section 23(1), upon notification by the Director, Forest
          Enterprises Branch, the title to and property in those Seedlings shall vest in the
          Contractor and the Contractor may dispose of the Seedlings in its sole discretion.

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MISCELLANEOUS

24. If the Director, Forest Enterprises Branch, in his sole discretion which shall be exercised
      reasonably, determines that the Contractor has failed to meet the requirements of this
      Agreement, he may in writing notify the Contractor of the default and require it to
      correct the default within a reasonable time, as determined by the Director, Forest
      Enterprises Branch in his sole discretion which shall be exercised reasonably having
      regard to the particular default alleged. If the Contractor fails to correct the default
      within the time so fixed, the Director, Forest Enterprises Branch may terminate this
      Agreement on written notice to the Contractor, and therefore, the only obligation of the
      Director, Forest Enterprises Branch to the Contractor shall be to pay for Seedlings
      delivered before the notice of termination which meet the Specifications.

25. Subject to 11(3), neither party shall be responsible for loss or damage caused by its
      delay or failure to perform its obligations under this Agreement when the delay or
      failure is due to strikes, floods, acts of God or the Queen's enemies, lawful acts of public
      authorities or delays or defaults caused by common carriers which cannot be reasonably
      foreseen or provided against.

26. This Agreement shall be construed in accordance with the laws of the Province of
       British Columbia.

27. The Term of this Agreement and the Schedules attached to it may be amended by
       the written agreement of the parties.

28. This Agreement shall not be assigned, subcontracted or transferred in whole or in part
      without the written consent of the Director, Forest Enterprises Branch, except that
      nothing herein will operate to prohibit the Contractor from pledging moneys due or
      accruing due under this Agreement as security for borrowings pursuant to a general
      assignment of book accounts, or assignment of a specific debt or otherwise.

29. Notwithstanding any other provision of this Agreement the payments of money by the
      Director, Forest Enterprises Branch to the Contractor pursuant to this Agreement are
      subject to:

(a)    there being sufficient moneys available in an appropriation, as defined in the
        Financial Administration Act, S.B.C. 1981, c.15 (the "Act"), to enable the
        Province, in any fiscal year or part thereof when any payment of money by the
        Director, Forest Enterprises Branch to the Contractor falls due pursuant to this
        Agreement, to make that payment; and

(b)    Treasury Board, as defined in the Act, not having controlled or limited, pursuant
        to the Act, expenditure under any appropriation referred to in paragraph (a).

30. If any provision of this Agreement or the application of it to any person or circumstance
      is invalid or unenforceable to any extent, the remainder of this Agreement and the
      application of it to any other person or circumstance will not be affected or impaired
      thereby and will be valid and enforceable to the extent permitted by law.

31. This Agreement constitutes the entire agreement between the parties with respect to the
      subject matter of this Agreement and there are no representations or warranties, express
      or implied, statutory or otherwise and no agreements collateral to this Agreement other
      than as expressly set forth or referred to in this Agreement.

32. Each of the parties will, upon the reasonable request of the other, make, do, execute or
      cause to be made, done or executed all further and other lawful acts, deeds, things,
      devices, documents, instruments and assurances whatever for the better or more perfect
      and absolute performance of the terms and conditions of this Agreement.

33. Wherever the singular or masculine is used in this Agreement it shall be construed as
      the plural or feminine or neuter, as the case may be, and vice versa where the context or
      the parties so require.

IN WITNESS WHEREOF the Parties have executed this Agreement and this Agreement is made
as of the day and year first above written.

SIGNED, SEALED And DELIVERED
by the Director, Forest Enterprises Branch on behalf of
Her Majesty the Queen in the Right of
the Province of British Columbia
in the presence of:


__________________________________ )    
Witness )    
__________________________________ )   _________________________________
Address )   Director, Forest Enterprises Branch
  )   Ministry of Forests
       
       
       
       
The COMMON SEAL OF )    
  )    
__________________________________ )    
was hereunto affixed in the presence of: )    
  )    
  )    
__________________________________ )    
Authorized Signatory )    
__________________________________ )    
Authorized Signatory ) )    
  )    
__________________________________ )    
Witness )    
  )    
__________________________________ )    
Address )    

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