ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL

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1 PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. 0627, Approved and Ordered MAY Executive Council Chambers, Victoria Lieutenant Governor On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that approval is given to the Minister of Agriculture, Fisheries and Food, on behalf of the Province, to enter into an agreement with Canada (the National Transition Scheme for Feeder Calves, Feeder Cattle and Slaughter Cattle) substantially in the form of the draft agreement attached to this order. i Minister of Agricul re, Fisheries and Food Presiding Member of the Executive Council (This part is for administratiw purposes (only and is not part (1 the Order.) Authority under which Order is made: Farm Income Insurance Act, R. S. B. C. 1979, c. 123, s. 5. Act and section Other IsrecifY) QP.11111, 1: Recycled NA.

2 AGRIIIIINT NWT BROUILLON MATIUMAL TRANSITION SCUMS SON HINDU CALVSS, FEED= CATTLS AND SWIGS= CATTLS TES AGREININT sada this day of 1,104. SITIFEEM: CANADA es represented by the Minister of Agriculture for Canada. Hereinafter referred to as "Canada". AND: PROVINCE of Alberta as represented by the Minister of Agriculture, Food and Rural Development and the Minister of Federal and Inter-governmental Affairs for Alberta, PROVINCE of Minister of Columbia, PROVINCE of Agriculture PROVINCE of Minister of British Columbia as represented by the Agriculture, Fisheries and Food for British Manitoba as represented by the Minister of for Manitoba, New Brunswick as represented by the Agriculture for New Brunswick, PROVINCE of Nova Scotia as represented by the Minister of Agriculture and Marketing for Nova Scotia, PROVINCE of Ontario as represented by the Minister of Agriculture and Food for Ontario, PROVINCE of Prince Edward Island as represented by the Minister of Agriculture, Fisheries and Forestry for Prince Edward Island, PROVINCE of Saskatchewan as represented by the Minister of Agriculture and Food for Saskatchewan. Hereinafter referred to as the "Provinces".

- 2 WISMIAS Canada and the Provinces entered into an Agreement referred to as the National Tripartite Price Stabilization Scheme (NTSP) for Feeder Calves, Feeder Cattle and Slaughter Cattle

3 - 2 WISMIAS Canada and the Provinces entered into an Agreement referred to as the National Tripartite Price Stabilization Scheme (NTSP) for Feeder Calves, Feeder Cattle and Slaughter Cattle (hereinafter referred to as the "NTSP for Beef") in February 1989 which was scheduled to expire December 31, WHEREAS Canada and the Provinces.greed to amend the said NTSP for Reef Agreement to provide for its termination effective December 31, WHEREAS Canada and the Provinces reaffirm that it is the intent of signatories to make a whole farm income stabilization program the basic mechanism for helping farmers, including cattle producers, manage price/income risk for the future. WHEREAS, as a result of the early termination of the NTSP for Beef and for the purposes of transition to a whole farm income stabilization program, Canada and the Provinces have agreed that the Provinces shall elect that benefits to producers will be provided by way of a "NISA Bridge Program" or a "Beef Industry Development Fund". Therefore, the parties hereto covenant and agree as follows: 1.0 MUM= "NTSP for Beef" means the Agreement establishing the National Tripartite Stabilization Schemes for Feeder Calves, Feeder Cattle and Slaughter Cattle. "Eligible Producer" means a participant in good standing in the NTSP for Beef as of December 31, 1993 and who registered beef cow inventories or slaughter cattle sales or feeder cattle sales in "NISA" means the Net Income Stabilisation Account Program, as defined by the Federal/Provincial Agreement establishing the Net Income Stabilization Account Program. 3.0 EIRMal 2.1 The purpose of this agreement i to provide benefits in lieu of protection under the NTSP for Beef and as a transition to a whole farm income stabilization program in the form of a NISA Bridge Program as set out in Schedule "A" and a Beef Industry Development Fund as set out in Schedule "B".

4 ritannialgilligin 3.1 Canada and the Provinces shall each contribute equally, in accordance with the terms of this agreement, a maximum of one-half of the premium contributions made under the NTSP for Beef in respect of Eligible Producers' feeder and slaughter cattle sales for the period October 1, 1992 to September 30, 1993 and beef cow inventories for =111224L/Miniallinfi 4.1 Canada and the Provinces will, when deemed necossary, review the environmental impact of activities undertaken pursuant to this agreement. S.0 iiiiiagnraninin 3./ Canada and the Provinces agree to cooperate in the development and delivery of a program of public information respecting the implementation of this Agreement. 3.2 All public information in connection with this Agreement by either or both Canada and the Provinces shall clearly make reference to their being delivered under this Agreement and fairly reflect the :),Itribution of each party to the Agreement. 6.0 gempalmelfinlili 6.1 This document including Schedules "A" and "B" constitutes the entire agreement between Canada and the Provinces. 6.2 No member of the House of Commons shall be entitled to any share or part of this Agreement or any benefit arising therefrom. 6.3 This Agreement will terminate December 31, 1999, unless otherwise agreed to by signatories to this Agreement.

5 4- In witness Vh,.4reof this Agreement is duly executed by the authorised representatives of the parties. IIIMILI DAVI OF =MUM Minister of Agriculture for Canada Minister of Agriculture, Food and Rural Development for Alberta, Minister of Agriculture, Fisheries and Food for British Columbia Minister of Agriculture for Manitoba Minister of Agriculture for Nov Brunswick Minister of Agriculture and Marketing for Nova Scotia

6 - 5 DUI OF Minister of Agriculture and Food for Ontario Minister of Agriculture, Fisheries and Forestry for Prince Edward Island Minister of Agriculture and Food for Saskatchewan Approved pursuant to the Alberta Department of Federal and Intergovernmental Affairs Act. Minister of Federal and Inter-governmental Affairs for Alberta

SCRIDVLB "A" japa Bridge Prove' The Provinces of Ontario, Nova Scotia, New Brunswick, and Prince Edward Island (hereinafter referred to as "NISA Bridge Provinces") have elected to provide the NISA

7 SCRIDVLB "A" japa Bridge Prove' The Provinces of Ontario, Nova Scotia, New Brunswick, and Prince Edward Island (hereinafter referred to as "NISA Bridge Provinces") have elected to provide the NISA Bridge Program as outlined in this Schedule. Producer Deposits Government Contributions In NISA Bridge Provinces, Eligible Producers who are NISA participants may make deposit, no later than July 29, 1994, unless otherwise extended by agreement between Canada and NISA Bridge Provinces, to be credited to their NISA Account Fund No.1 up to the amount of premiums paid under the NTSP for Beef in respect of eligible feeder and slaughter cattle sales for the period October 1, 1992 to September 30, 1993 and beef-cow inventories for Producer deposits are not deductible for income tax purposes. In NISA Bridge Provinces, Canada and the province shall each make a contribution to be credited to the Eligible Producer's NISA Account Fund No.2 equal to fifty (50) percent of the producer's deposit under the NISA Bridge Program. Canada shall invoice the Provinces for their respective shares of contributions. Within thirty (30) days of receipt of an invoice from Canada, the Provinces shall pay the invoiced amount to Canada for credit to the appropriate producer's account. Canada shall credit its contribution to the producer's account on the date the producer deposit is received. Canada shall credit the Province's contribution to the producer's account on the date it is received. Interest Interest shall be earned from the date of receipt of the producer's deposit and from the date government contributions are credited to the producer's account at a rate established by the Minister of Finance for Canada.

fraasfer to =BA Administration A producer's deposit, governments' contribution and accrued interest shall be credited to the producer's NISA Account Fund No.1 and Fund No.

8 fraasfer to =BA Administration A producer's deposit, governments' contribution and accrued interest shall be credited to the producer's NISA Account Fund No.1 and Fund No.2 respectively, no later than two months following the deadline for producer deposits. Notwithstanding, the Terms and Conditions of the NISA Agreement, Account Balance provisions under that Agreement shall not be applied to funds transferred to NISA Accounts in respect of the NISA Bridge Program until such time as cattle becomes an eligible commodity under NISA. Canada shall be responsible for the implementation and administration of the program in accordance with the provisions of this agreement and with the advice of participating provinces. Canada is responsible: (a) to design and print all forms utilized in the Program; (b) to determine Eligible Producer deposits and government contributions; (c) to administer receipt of deposits made by Producers and contributions made by Provinces and Canada; (d) to provide an audited financial schedule on the operations of the program to participating Provinces; (e) to carry out all other administrative functions relating to the Program not otherwise specified herein.

SCR2DOLS "2" leaf intbiatawan Canada and the Provinces have agreed to establish a Beef Industry Development Fund (herein referred to as "the Fund") to undertake activities with the objective of

9 SCR2DOLS "2" leaf intbiatawan Canada and the Provinces have agreed to establish a Beef Industry Development Fund (herein referred to as "the Fund") to undertake activities with the objective of promoting and enhancing the competitiveness of the beef industry. Beef Industry Development Fund Aseemat Government Contributions For the purposes of administering the fund, an account, herein referred to as the Account", will be established in the Consolidated Revenue Fund of Canada. All amounts received in respect of producer, provincial and federal contributions and interest shall be credited to the Account. All program costs shall be charged to the Account, unless otherwise specified in this agreement. Interest shall be earned on the amount standing to the credit of the Account at the rate established by the Minister of Finance for Canada. Canada and the Provinces shall each pay to the Account the amount provided for in Section 3.1 net of their contributions made under the NISA Bridge Program. At the start of the program, the participating provinces will declare their level of contribution. A province must meet its financial obligations over the first three years of the program. Canada shall pay its share to the Account upon receipt of payment by Provinces. Other Contributions Producer, producer organizations or other non-government parties may make contributions to the Beef Industry Development Fund Account.

10 - 2 Seawall Criteria Activities to be undertaken shall be compatible with Canada's international obligations and may include, but are not restricted to: (a) marketing and promotion projects, market information, advice and promotion relating to particular products but excluding expenditure for unspecified purposes that could be used by sellers to reduce their selling price. (b) research, including general research, research in connection with environmental issues, and research related to specific products; (c) extension and advisory projects, including the provision of means to facilitate the transfer of information and technology to producers and consumers; (d) training projects, including both general and specific training initiatives; Expenditures under the program shall not involve direct support to producers or processors. National Committee A Committee of twelve (12) voting members shall be established to carry out the duties as outlined herein and be composed proportionately of the following federal, provincial and producer representation: (i) Pour (4) members appointed by the Provinces. At the implementation date the contributing provinces participating in the Industry Development Fund but not the NISA Bridge Program will be represented on the Committee.

- 3 Subsequently, the Provinces shall determine, among themselves, how to rotate representation on the Committee. (ii) (iii) Four (4) members appointed by Canada.

11 - 3 Subsequently, the Provinces shall determine, among themselves, how to rotate representation on the Committee. (ii) (iii) Four (4) members appointed by Canada. Four (4) members appointed by the Minister of Agriculture as producer representatives from a list submitted by the Canadian Cattlemen's Association for a two year term. At the request of a Province, the Committee will approve expenditures, to a maximum of 25% of that Province's actual contributions, to specific activities that are requested by that Province, provided that such activities are within the objectives and criteria of the Fund. In the event that a NISA Bridge province contributes an amount equal to or greater than one or more of the provinces represented on the Committee, the committee shall increase to 15 members accordingly. A member shall be selected by the Committee to act as chairperson. Producer members of the Committee representing producers shall be paid for their travelling and living expenses incurred while absent from their place of residence by Canada in the manner determined by the Minister of Agriculture for Canada. Members representing the Provinces and Canada shall be paid for services, travelling and living expenses by their respective governments.

12 4 - Administration Where possible, activities and administrative support should be provided through existing agencies and organisations. Staff will be seconded as required from either provincial or federal ministries. The Committee is specifically responsible: (a) to develop the specific objectives and criteria for development activities; (b) to solicit proposals for work on specific areas that are a priority to the Committee; (c) to approve activities and related expenditures; (d) to establish roles and responsibilities for project management; (e) to provide an annual audited financial schedule and report of fund activities to signatories within four months of the end of each fiscal year; (f) to undertake a review of the program at least every two years. Canada is responsible: (a) to administer the Account and receive and record contributions paid to the Account; (b) to make payments from the Account on behalf of the Committee; (c) to provide administrative support to the Committee. The Provinces are responsible to carry out such administrative functions which may be agreed upon with Canada and the Committee from time to time.

- 5 - foraisation This program can be mended or terminated by further written agreement executed by Canada and at least twothirds of the contributing Provinces, representing no less than fifty

13 - 5 - foraisation This program can be mended or terminated by further written agreement executed by Canada and at least twothirds of the contributing Provinces, representing no less than fifty percent of the total provincial contributions. At the termination of this agreement any mounts remining to the credit of the Account will be shared by Canada, the Provinces and producers proportional to their respective contributions to the Account. The producers' share shall be used to the benefit of producers following the advice of the producer representatives on the Committee.

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