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FarmPurchaseAgreement Page1

FARM AGREEMENTOFPURCHASEANDSALE

$

We, ("Purchaser") having inspected the property, hereby agree to andwith ("Vendor") to purchase all and singular thosepremisesmoreparticularlydescribed intheScheduleA,and locatedintheTownshipof ,Countyof ,containingXacresofland,togetherwiththosefarmingassetsdescribedbelow("theFarm")at thepriceorsumof$ .00 Canadian("PurchasePrice"),payableasfollows:

$ .00xx/100 Dollars cash or certified cheque to the said Vendor on thisdate as a deposit to beheld in trust pending completionor other terminationof thisAgreement,and tobecreditedonaccountofPurchasePriceonclosingandcovenant,promiseandagreeasfollows:

Note: where the closing date is more than three months in the future, it is

customarytoseeadditionaldepositsbeingmadebycertainpredefineddates.Inthiscase, the agreement usually provides that the deposits are to be placed into aninterest‐bearingsavingsaccount.

Ifthisisthesituationconsiderinsertingthefollowing:

InvestmentofDeposits:Allofthedepositsadvancedpursuanttothisagreementshallbepaidtoandheldbythevendor=s solicitors in trust, who upon being provided with the purchaser=s socialinsurance number will proceed to place the same into either an interest‐bearingaccount(s) or guaranteed investment certificate(s); and this shall constitute theirproperauthorityfordoingso.Allinterestsoearnedonanysuchdepositsshallbelongtothepurchaserwhoshallberesponsibleforallincometaxpayableinrespectthereto. Thedeposit(s)togetherwithallaccruedinterestshallbecreditedtowardsthepurchasepriceonclosing.

PaymentofBalancePay the balance of the purchase price, subject to adjustments, in cash or by certifiedcheque,totheVendoroncompletionofthistransaction.


AllocationofthePurchasePrice: The purchase price herein shall be allocated among the farming assets purchasedhereunderasfollows:

1) Land:

Tiled‐Xacres $UntiledBXacres $BushBXacres $MarginalBXacres $ Total acres: $

Note: identify any lands which are being rented out, and the termsthereof. Determine when the lessee is to remove any crops, andwhetherthelandshavetobefallploughed.Ifthelandbeingrentedisonlyusedbyanotherfarmerforcattlegrazing, findoutwhentheanimalsaretoberemovedfromsame.

2) Buildings(includingallfixtures)

Barn#1 $Barn#2 $MachineShed/Domes $FinishingBarn $LoafingBarn $

Total: $ 3. Silo(s)andUnloaders $ 4. PrincipalHouseand1acre: $ 5. Goodwill: $ 6. Inventory:*

Crops $


Feed $Haylage $Silage $

Total:

Note: all remaining crops, seeds, hay, silage, haylage, feed /vitaminsupplements, straw and other crops be they planted, standing oralreadyharvestedbythevendor,andpresentlystoredonsiteinthebarns, silos , sheds or otherwise shall be included in the aforesaid saidpurchaseprice.

Pendingcompletionofthistransaction,thevendorwillbeentitledtouse

so much of the same to maintain the present herd size and milkproduction so long as the same is consistent with good farmingpractices.

7. Cattle:

Thedetailsoftheherdbeingacquiredisasfollows:

Cows: # (dryormilking)Heifers: #*Calves: #*Bulls: #

Total: X

Note: the particular number of heifers or calves cannot be accurately

predictedgiven theclosingdatewhich ismore than threemonths fromthe date of the execution of this agreement. As such, the number ofheifersmaybemoreorlessthanasspecifiedabove. Thesameappliestothecalves. However,thevendorwarrantsthattherewillbeatleast Xtotal animal units on closing of which # will be cows (either dry ormilking).

NaturalHerdIncreases: it is agreed that any animals born after the

acceptance of this agreement shall belong to the purchaser, withoutincurringanyincreaseinthepurchaseprice.

Note: bull calves sometimes receives special attention, and sometimes

youseethefollowing:"thevendorshallbeentitledtosellanybullcalves


bornaftertheacceptanceofthisofferandpriortoclosing,inwhichcasethevendorshallbeentitledtoallsaleproceeds"

8. Equipment/machinery:$[InsertAllocatedValues],andseeScheduleBforadetailedlist.

9. MilkQuota: $

for the production of X kilograms of dailyquota,asrepresentedbylicense

number ???. OperatingFarmAnOngoingConcernThepurchaserisacquiringthevendor'sfarmisanongoingconcern. Assuch,thevendorshall maintain all farming assets (which includes all buildings, farmlands,machinery/equipment,andanimals) inproperorder,whichareconsistentwithpreviouspractices,andaccordancewithgoodhusbandrystandards.AnimalsBExchanges/SalesItisacknowledgedthatthevendormayexchange/sellthoseanimals,whichareconsideredreasonablynecessarytomaintaintheherd,anditsproductiontoatleastthesamelevelasexisted on the date of this agreement. Any animals, which are either exchanged ordisposed of, shall be replaced with animals of a similar nature/ quality. In allcircumstances,itisagreedthatthetotalnumberofanimalsonclosingwillnotbelessthan X. TiledDrainedLand:TheVendorwarrantsthatthereare ?? tiledacresoflandbeingacquired,andagreestoprovide thePurchaserwithall tiledrainageplans/mapswhichare inhispossession. Inthe event that there is less than X tiled drained acres (as confirmed by a surveyor=scertificate), the Parties agrees to adjust the purchase price on the basis of $1,500.00? /acre.Conditions


ThisOfferisconditionaluponthePurchasers:

1) At their expense, arranging satisfactory financing necessary to complete thisagreementontermsandconditionsacceptabletothem.

2) The purchaser obtaining Canadian Landed Immigration Visas on or before (insertdate)forhimselfandhisspouse.

3) Thepurchaserbeingphysicallyabletofarm.Unless the Purchaser gives notice inwriting delivered to the Vendor that the precedingconditionis/arefulfilledonorbefore4:00p.m.onthe 2001thisOffershallbenull and void and the deposit returned to the Purchaserswithout interest or deduction. This condition is included for the benefit of the Purchasers andmay bewaived at theiroptionbynoticeinwritingdeliveredtotheVendorwithinthetimeperiod.EnvironmentalWarrantyTheVendorrepresentsandwarrantstothebestofhisknowledgeandbeliefthatduringtheperiod of his ownership of the property, that: all environmental laws and regulationshavebeencompliedwith;nohazardousconditionsorsubstancesexistonthe land; thereare no limitations or restrictions affecting the continueduse of the property exist, otherthan those specifically provided for herein; there is no pending litigation respectingEnvironmental matters; no outstanding Ministry of Environment and Energy Orders,investigations, chargesorprosecutions regardingEnvironmentalmattersexist; therehasbeennoprior use as awaste disposal site; and all applicable licenses are in force. TheVendoragreestoprovidetothePurchaseruponrequestwithalldocuments,records,andreportsrelatingtoenvironmentalmatters thatare in thepossessionof theVendor. TheVendor further authorizes (insert appropriateministry), to release to the Purchaser, hisAgentorSolicitor,anyandallinformationthatmaybeonrecordintheMinistryofficewithrespecttothesaidproperty.Thepurchasershallbeentitledtohaveaccesstotherealpropertyatallreasonabletimestoconductanytests,inspectionsandexaminationsoftherealpropertytodeterminewhetherthereistheexistenceofanycontaminantswithinmeaningoftheEnvironmentalProtectionAct of Ontario. Immediately after any tests are performed the purchaser shall, and hissolecost,restorethepremisestotheirformercondition. Should such tests reveal the presence of any contaminantswhichwould costmore than$10,000toremove,thepurchasershallforthwithprovideacopyofthetestsresultstothevendors; thepurchaser shall thenhave theoption to terminate this agreement, inwhichcase this agreement shall be null and void and all deposits together with any accrued


interestshallbeimmediatelyreturnedtothepurchaser;inwhichcaseneitherpartyshallbeliabletotheotherforany costsordamages.Thepartiesagreethattheserepresentationsandwarrantiesshallformanintegralpartofthis Agreement and survive the completion of this transaction, but apply only tocircumstancesexistingatthecompletionofthistransaction.GSTThePurchasePricedoesnotincludeGoodsandServicesTax(G.S.T.)and,ifthistransactionis subject toG.S.T., then applicable G.S.T. shall be in addition to the Purchase Price. AllG.S.T.shallbecollectedandremittedasrequiredbylaw. If thistransactionissubjecttoG.S.T. but the Vendor is not required to collect or remit G.S.T., the Purchaser agrees toprovideonorbeforeclosingto theVendororVendor'sSolicitorawrittencertificate inaform reasonably satisfactory to the Vendor or Vendor's Solicitor to the effect that theVendorisnotrequiredtocollectorremittheG.S.T.andshallprovidetheVendorwiththePurchaser'sG.S.T.registrationnumber,ifapplicable,failingwhichtheapplicableG.S.T.shallbepaid to theVendoron closing. If this transaction isnot subject toG.S.T., theVendoragreestoprovideonorbeforeclosingtothePurchaserorPurchaser'sSolicitorawrittencertificate in a form reasonably satisfactory to the Purchaser or Purchaser's SolicitorcertifyingthatthetransactionisnotsubjecttoG.S.T. Or

The Vendor warrants, which warranty shall survive the completion of thistransaction,thatheisaregistrantpursuanttotheprovisionsoftheExciseTaxAct(Canada)andthatthetransactioncontemplatedhereinconstitutesataxablesupplyof substantiallyallof theassetsof thebusiness forwhichGoodsandServicesTax("G.S.T.") will be exigible and agrees to execute a form of election pursuant toSection167oftheExciseTaxActelectingtoexemptthewithintransactionfromthepaymentofG.S.T.

GSTTaxClearanceCertificateThevendoragreestosupplyaGoodsandServicesTaxClearanceCertificateonclosing.NoUFFI


The Vendor represents and warrants that during the period of their occupancy of thePropertyand,tothebestoftheirknowledge,priorthereto,nobuildingonthePropertyhasbeen insulated with Urea Formaldehyde Foam Insulation. This warranty shall survivecompletionofthistransaction.ExcludedFixturesAllfixturesshallremainwiththeProperty,except:

NONEIncludedChattelsAll farm machinery and equipment presently located on the property and withoutlimitingthegeneralityoftheforegoingthisshallincludeallthosechattelswhich aremoreparticularlydescribedintheattachedscheduleB. RentalItems:It isacknowledgedthat the followingchattelsarerentedonamonthlybasis,andarenotbeingacquiredfromthevendor:

_ propanetanks_ hotwatertank_ furnace _ acetyleneandoxygentanks

LeasedItems:The Purchaser agrees to assume the following leases, and should the Lessor require are‐negotiation, the Purchaser agrees to proceed with same so long as the terms andconditions are not ore onerous than what was originally applicable to the Vendor. [Identifythoseitemswhichhaveleases.]BirthCertificatesThevendor'sagreetoprovidethepurchaserwith theirrespectivebirthcertificates,onceallconditionshavebeenremovedsothatproperPersonalPropertySecurityActsearchesmaybeperformed.IrrevocableDateThisOffershallbeirrevocablebythePurchaseruntil11:59p.m.on ,2001 afterwhichtime,ifnotaccepted,thisOffershallbenullandvoid,andthedepositreturnedtothePurchaserwithoutinterestordeduction.GoodTitle


PROVIDEDthetitletotherealpropertyandallotherfarming assets beingacquiredbythepurchaserisgoodandfreefromallencumbrances,exceptasaforesaid,andexceptlocalratesandminoreasementsforhydro,gas,telephoneorlikeservicestotheProperty;saidtitletobeexaminedbythePurchaserathisownexpense,andthePurchasernottocallfortheproductionofany titledeed,abstractof title, survey,prooforevidenceof title,otherthanthoseinVendor'spossessionorunderhisorhercontrol;andprovidedthesamehavebeencompliedwith, thePurchaseragrees toaccept thePropertysubject toallMunicipalrequirements, including building and zoning by‐laws, minor easements asabove‐mentioned,andtorestrictionsandcovenantsthatrunwiththeland. Thevendoragrees that, if requested,hewill completeanddeliver to thepurchaseratorpriortoclosingastatutorydeclarationpreparedbythepurchaserastothematerialfactsrelatingtopossessionnotdisclosedbytheregisteredtitle.SearchofTitleThePurchaser istobeallowed45daysfromtheremovalofallconditions to investigatethetitleathisownexpense,andifwithinthattimehefurnishestheVendorinwritingwithany valid objection to the title, or to any outstanding Municipal deficiency noticesaffecting the Property (subject however to the provisions below which specifically dealwithoutstandingworkorders),ornon‐compliancewithzoningby‐laws,orthatthepresentuse of the property (namely a dairy farm) may not be lawfully continued, or that thebuildingsonthePropertymaynotbeinsuredagainstriskoffire,whichtheVendorshallbeunable or unwilling to remove or correct, and which the Purchaser will not waive, thisAgreementshall,notwithstandingany intermediateactsornegotiations,benullandvoidand thedepositmoney returned to thePurchaserwithout interestordeduction, and theVendor shall not be liable for any costs or damages. Save as to any valid objection somadewithinsuchtime, thePurchasershallbeconclusivelydeemedtohaveacceptedthetitleoftheVendortotheProperty.

ThePurchasershallnotcallfortheproductionofanytitledeed,abstract,surveyorotherevidenceoftitletothepropertyexceptsuchasareinthepossessionorcontroloftheVendor.

TheVendoragreesthat,ifrequestedbythePurchaser,hewilldeliveranysketchorsurveyofthepropertyinhispossessionorwithinhiscontroltothePurchaserassoonaspossibleandpriortothelastdayallowedforexaminingtitle.

NoOutstandingWorkOrdersTheVendorherebywarnsthattherearenooutstandingworkordersaffectingthepropertyand further consents to the municipality releasing to the Purchaser details of alloutstanding Municipal work orders or deficiency notices affecting the Property. The


vendoragreestocompletelyrectifyanyworkorder(s)issuedbytheMunicipalitypriortoclosing.

LegalDescriptiontotheProperty

ThevendorsagreetoprovideattheirexpensealegaldescriptionforallparcelsoflandbeingsoldtothepurchasersinaformthatisacceptabletotheLandRegistrarpursuanttotheregulationsundertheRegistryActorLandTitlesAct. Anypropertydescriptionforthefarmpropertybeingacquiredthathasalreadybeenstamped,oristobestampedbythesaidregistrarwhichprovides"thedescriptionofthelanddoesnotcomplywiththeregulationsundertheRegistryAct,andthatareviseddescriptionmayberequiredinsubsequentinstruments"isnotacceptable. Insuchanevent,thevendorsagreethat,theywillberequiredtoprovideareferenceplanofsurveyforthepropertyinquestion,atnocosttothepurchaser.

ClosingDateThisAgreementshallbecompletedon ,200?onwhichdatevacantpossessionofthePropertyistobegiventothePurchaserunlessotherwiseprovidedforherein.InterimPossessionOncethefinancingconditionhasbeenwaived,thePurchasershallbeentitledtoworktheland(eg. tilling, cultivating; sprayingand fertilizing) and toplant/seed cropsathisownexpense. Intheeventthatthistransactiondoesnotclose,thenthePurchaserwillpayrenttotheVendorof$ peracre,andwillbeentitledtoremovehiscropattheendseason,whichshallbenolaterthanNovember30,200?. (Identifywhetherthepurchaserisalsoentitledtohaveaccesstothebarns.)DutytoInsureUntil completion of this sale, all buildings and equipment on the Property shall be andremain at the risk of the Vendor until closing, and the Vendor will hold all policies ofinsuranceforthePropertyandallfarmingassets,andtheproceedsthereofintrustforthepartieshereto,astheirinterestsmayappear. Intheeventofdamagetothesaidbuildings,equipment oranimals inanamountexceeding$50,000.00beforethecompletionofthistransaction,thePurchasershallhavetherighttoelecttotakesuchproceedsandcompletethe purchase, or cancel this Agreement, whereupon the Purchaser shall be entitled to areturn, without interest or deduction, of all moneys theretofore paid on account of thispurchase.Adjustments


WiththeexceptionofDrainageChargeswhicharespecificallydealtwithbelow,unearnedfireinsurancepremiums,fuel,taxes,interest, rentals,alllocalimprovements,waterratesand other similar or usual expenses relating to the Farm and the assets being acquiredhereinshallbeproportionedandallowedtothedateofcompletionofsale. TileDrainageLoansAlltiledrainageloansundertheTileDrainageActshallbepaidinfullanddischargedbythevendorsonclosing. Attheoptionofthepurchaser,thepurchasermayaccepttitlesubjectto these tile drainage loans, inwhich case the purchaserwill receive a reduction in thepurchasepriceequaltoallamountsowingforprincipalandaccruedinterestunderthesaiddrainageloans tothedateofclosing.MunicipalDrainsAllannualchargesformunicipaldrainsundertheDrainageActshallbeapportionedtothedateofclosing. Allarrearsaretobebroughtintogoodstanding.FarmLandsTaxRate:The Vendor warrants that the farm lands being acquired on closing will qualify for the"farmlandspropertyclass"assetoutintheAssessmentAct,whichprovidesfora reduced rateonsuchlandsat25%ofthefullrate,andthattheVendorhasmeetalltheregistrationandeligibilityrequirementssetforthinsection8ofRegulation282/98. MilkQuotaandProductionofMilktoClosingThevendorshallberesponsibleforthemilkquotauntilclosing. Anyquotaincreasesordecreaseswillaccruetothebenefitofthepurchaserwithoutanycorrespondingincreaseordecreaseinthepurchaseprice,solongasthesamehasbeenasaresultofDFOpolicyimplementation. ExecutionofDocumentationRegardingQuotaTransfer Thevendorswilltakeallappropriatestepstotransferallthemilkquotatothepurchaseronclosing,orassoonaspracticalthereafter,andthevendorswillpromptlyexecuteallnecessarydocumentsinrelationthereto.PaymentsforMilkReceivedafterClosing

Anymorningmilkingontheclosingdaywillbelongtothevendor,andanynightmilkingontheclosingdaywillbelongtothepurchaser. Wherethereisanypaymentforthedeliveryofmilkasoftheclosingdatethatisissuedinthenameofthevendors, thevendorsagreeto immediatelypaytothepurchaserthatportionofthepaymentwhichthepurchaserisentitledto. Thesameshallapplytoanygovernmentsubsidies.


WaterPotabilityTestsPrior to Xdate , thevendorswillprovide thepurchaserwithanup‐to‐datewater testfrom the subject property confirming that the quality of thewater is potable, and fit forhumanconsumption.WaterFlow:(gallonsperminute)The vendor agrees to identify all wells located on the property, and will provide thepurchaserwith allWellDrillerRecordsandcertificates. Thevendorcovenantsthatthewellwhichservicestheprincipalresidenceprovidesaflowrateof Xgallonsperminute;andthatthewellwhichservicesthebarnprovidesaflowrateof Xgallonsperminute.

Notethataminimumof5‐7gallonsperminuteisnormallyacceptable.

Thevendorsrepresentandwarrantthatthewell(s) which service thefarmarewhollylocated within the limits of the said property, and that such well(s) and all relatedequipment including the pressure system and pumpswill be in goodworking order onclosingdate. Septic/sewagesystemThevendors representandwarrantthatallsewage/septicsystemswhich service thefarmarewhollylocatedwithinthelimitsofthesaidproperty,andthattheywillbeingoodworking order on closingdate. All septic tanks are to be pumped immediately prior toclosingatthevendor'sexpense.PlanningActStatementsTransfer/Deed to be given to the Purchaser shall contain a statement completed by theVendorandtheVendor'sSolicitorpursuanttoSection50(22)ofthePlanningAct.This Agreement shall be effective to create an interest in the real property only if theapplicablelanddivisionprovisionsofthePlanningActarecompliedwith,andtheVendoragrees,athisorherexpense,tocomplywithsuchprovisionsandtoproceeddiligentlywiththeapplicationforsuchcompliance.FamilyLawActThevendorshallcomplywiththeprovisionsoftheFamilyLawAct,asamendedfromtimetotimeunlessthevendor=sspousehasexecutedtheconsenthereinafterprovided. Residents


TheVendor,onorbeforecompletion,willproduceevidencethatheorsheisnotnow,andupon completion will not be, a "non‐resident person" within the meaning and for thepurposesofSection116oftheIncomeTaxActofCanadaorifheorsheisa"non‐residentperson" will fully comply with the provisions of Section 116 of the said Act prior tocompletion.

ThePurchasershallbecreditedtowardsthepurchasepricewiththeamount,ifany,whichitshallbenecessaryforthePurchasertopaytotheMinisterofNationalRevenueinordertosatisfythePurchaser'sliabilityinrespectoftaxpayablebytheVendorunderthenon‐residencyprovisionsoftheIncomeTaxActbyreasonofthissale.ThePurchasershallnotclaimsuchcreditiftheVendordeliversoncompletiontheprescribedcertificateorhisstatutorydeclarationthatheisnotthenanon‐residentofCanada.

PreparationofdocumentsThedeedortransfershall,savefortheLandTransferTaxAffidavits,whichshallbepreparedandcompletedbythePurchaser,bepreparedinregisterableformattheexpenseoftheVendorandanymortgageattheexpenseofthePurchaser.

Vendor'sAdditionalWarrantiesandCovenants

TheVendorfurtherwarrantsandcovenantsasfollows:

1. ThatheistheownerofalltheFarming assetshereindescribedandagreedtobepurchased;thatthesamearefreeandclearofallliensandencumbranceswhatsoever,exceptasaforesaid.TheVendorrepresentsandwarrantsthatallstatementscontainedinthisOfferaretrueinfactandsubstanceandthatalltherecordsdealingwiththelivestockarecorrect,accurateandup‐to‐date.Allsuchrecordsdealingwiththefarmingassetsshallbegiventothepurchaseronclosing.

2. Thattherearenofacts,circumstancesorconditionsthatdirectlyorindirectlyrelatetothepastorpresentconductoftheFarmwithrespecttotheenvironmental,healthorsafetymattersthathaveexistedornowexist,thatalreadyhave,hadormayhaveamaterialadverseaffectontheoperationoftheFarmoruseofanyoftheassets,orthatmaygiverisetoliabilityforthePurchaserconcerningtheprotection,preservationorremediationofthenaturalenvironment,whetherair,land,surfacewaterorgroundwaterofwhichtheVendorisaware.

3. ThathewillcomplywithSection6oftheRetailSalesTaxAct, whereapplicable.


4. That all the equipment andmachinerybeing acquired on closing shall be in goodworkingcondition,wearandtearexcepted.Thevendorswillcontinuetouse,maintainandrepairallmachineryandequipmentinatimely,carefulandprudentmanner 5. Thatmilk productionwill be consistentwith prior periods. As such, the partieswillevaluateon(insertdate?)thecurrentbreedingpracticesofthevendoraswellastheenvironmental conditions affecting the herd (e.g., time of year and pasturing of thecows) .Wheremilkproduction,asoftheclosing, is lessthanfive(5%)percentofwhatitwasforpriorrecordkeepingperiods,thepartiesagreetoreducethepurchasepriceforthemilkingcowsaccordingly,unlessthereasonforthedropinproductioniseitheracceptabletothepurchaser,or theparticularfarmingpractices whichhaveresultedinthedropinproductionhavebeenpreviouslyapprovedbythepurchaser. Wherethepartiesarenotable to agreeupona reduction, thematter shall be referred to arbitration in accordancewiththeprovisionssetoutbelow.6) Thatthepurchasershallbeentitledtoareductioninthepurchasepricewhere:

a) The vendor is milking more cows on closing then when this agreement wasexecuted,buttheherd=soverallmilkproductionhaseitherdeclinedorisbeingmaintainedat thesame level; (Note: thiswouldbeaclear indication that thefarmerhasdonesomethingwhichhasadverselyaffectedtheherd. Anychangehoweverslightwillusuallyresultinthedropinproduction)

b) Theanimalrecordsconfirmacalvingintervalofmorethan13months; c) The average number of dayswhich the herd ismilking is less than "140‐160"

daysperyear;d) Thevendorhasnotproperlyplantedcropsfortheseason,withdueregardbeing

madetothetimewhentheplantingoccurred,andtheappropriateapplicationoffertilizersandsprays;

e) Anyhayfieldsnothavingbeencutinatimelyfashion;f) Anycuthaynothavingbeenproperlystoredinatimelyfashion.

7. That all animals will be free of disease on closing, and that all inoculations andvaccinations for the herdwill be current. The vendorwarrants that the animals beingsoldareingoodhealthandthepurchaserwillhavetherighttohavetheherdexaminedbyaveterinarianpriortoclosing. Wheretheveterinarianconfirmsthatananimal isnot ingood health, the vendor shall replace, at his own cost, the unfit animalwith one that ishealthy, consistentwith theothergoverningprovisionsof thisagreementas it relates tothereplacementofanimals.

Where the veterinarian is unable to issue a certificate of good health to thepurchaser formore than 15%of animals included in this sale, the purchasermay at hisoption, terminate this agreement and have all the deposits together with any accrued


interestreturnedtothepurchaser,inwhichcasethisagreementshallbeconsideredasnulland void and neither party shall be liable to the other for any damages are costswhatsoever.

Wheretheclosingdate ismorethanthree(3)months fromtheacceptanceof this

agreement,thevendorwillengageaDairyHerdImprovement(DHI)orNutritionspecialist,anduntil closingwillstrictly follow,athiscost, therecommendationsofsuchspecialist,asitrelatesgenerallytothehealthandproductionoftheherd,andinparticularthequalityofthefeedthatistobegiventotheherd. 8. Thatalltiledrainageworksarecompletelyinstalledonthevendor'sproperty,and where part of the Tile drainage works are installed on an abutting neighbor' sproperty, the vendor undertakes to provide a proper drainage easement in the farm=sfavor from the abutting neighbor, all of which will be duly registered on title prior toclosing,anacceptabletothepurchaser'ssolicitor.

9. Thatalltiledrainageworks/systemslocatedonthefarmareingoodworkingorder,and where they are not functioning properly prior to closing, it will be the vendorsresponsibilitytorectifythesameathisowncost. TheVendorwillsupplycopiesofalltiledrainagemapsassociatedwiththeproperty.10. Thatunlessotherwiseagreedto,noinventoryorstock‐in‐tradeshallbesoldwithoutthepurchaser'spermission.11. That the Vendor has had no problems with either the quality or quantity of thewater being supplied to the farm, and that it is fit for the farming and farm relatedpurposeswhichareintendedtobecarriedoutbythepurchaser;andindefaultofwhichthevendor will be required to drill a new well(s) for the purchaser which will reasonablysatisfythesame.12. ThattherearenoFenceViewersAwardsaffectingtheproperty,andthattherehavebeen no proceedings instituted thereunder which would affect the farmlands beingacquired.13. ThattheVendorhasnotreceivedany petitionfortheinstallationofanymunicipaldrains or drainageworkswhichwould affect the farm, and it is agreed that where anyamountremainsunpaidatanytimebeforetheclosingofthistransactionforthecostofanydrainageworksaffectingthelandsthen,inaccordancewithsection67oftheDrainageActRSO1990Ch.D.17, andfollowing,thevendorshallbesolelyresponsibleforthepaymentofsame.


14. That there are no proceedings against the Vendor under the Farming and FoodProductionProtectionAct,1998,and that allagricultural operations being carried out onthefarmarenormalfarmingpractices,asthattermissodefinedundertheAct. 15. That there are no outstanding penalties, orders, directions, or detention tagsagainsttheFarmerorthefarmingassetsundertheMilkAct whicharependingorbeingappealed,andthattheVendorisotherwisealicenseeingoodstandingwiththeDFO.

The Vendor will provide on closing a Statutory Declaration confirming the covenants,representations and warranties set out in this Agreement. Notwithstanding thecompletionofthistransaction,thecovenants,representationsandwarrantiesonthepartoftheVendorcontainedinthisAgreementshallsurviveclosingandcontinueinfull forceandeffectforthebenefitofthePurchaserArbitration:IfadisputearisesbetweenthepartiesrelatingtothisAgreement,thepartiesshallusethefollowingprocedure:

1. Ameetingshallbeheldpromptlybetweentheparties,attendedbyindividualswithdecision‐making authority regarding the dispute, to attempt in good faith tonegotiatearesolutionofthedispute.

2. If, within thirty (30) days after such meeting, the parties have not succeeded innegotiating a resolution of the dispute, they agree to submit the dispute tomediationandtobearequallythecostsofthemediation.

3. Thepartieswill jointlyappointamutually‐acceptablemediator,seekingassistancein such regard fromanappropriatemediation facility if theyhavebeenunable toagreeuponsuchappointmentwithin twenty (20)days from theconclusionof thenegotiationperiod.

4. The parties agree to participate in good faith in the mediation and negotiationsrelated thereto foraperiodof thirty (30)days. If thepartiesarenotsuccessful inresolvingthedisputethroughthemediation,thenthepartiesagreethatthedisputeshallbesettledbyarbitrationinaccordancewiththeArbitrationsAct,1991andtheArbitrationRulesofArbitrationandMediationInstituteofOntarioInc.Thedecisionof thearbitratorshallbe finalandbindingandshallnotbesubject toappealonaquestionoffact,lawormixedfactandlaw.

PhysicalInspectionofAllAssetspriortoClosingThepartiesagreetomakeajointinspectionofallfarmingassetsbeingacquiredpursuanttothisagreementseven(7)dayspriortoclosing,andtosigna jointstatementindicating


any deficiency arising from their inspection. Without limiting the generality of theforegoing, this shall include any missing items which are to be returned to the realproperty,oranydefectivemachinerywhichisto berepairedbythevendors,attheirsoleexpense. Thevendorsagreethatwhere:

1) thereasonablereplacementvalueofanymissingequipment,or 2) thereasonablecostofanyrequiredrepairs(whichhavenotbeenmadebythe

vendor) arecollectivelyinexcessof$1000(asestimatedbythepurchaser) thenthevendor=ssolicitorshallmaintainaholdback,intrust,afterclosing oftheamountinquestion.

Thevendor=ssolicitorshallonlyreleasesuchholdbackfundstothevendor:

1) afterthemissingequipmenthasbeenreturned totherealproperty;or2) whereapplicable, therequiredrepairshavebeencompleted to thesatisfaction

ofthepurchaser,and 3) evidence of payment by the vendors of such repairs has been satisfactorily

provided tothepurchaser.BulkSaleComplianceThissaletobemadeunderandsubjecttotheprovisionsoftheBulkSalesAct.

CompleteContractIt is agreed that there is no representation,warranty, collateral agreement or conditionaffecting this Agreement or the Property or supported hereby other than as expressedhereininwriting.TenderofDocumentsAnytenderofdocumentsormoneyhereundermaybemadeupontheVendororpurchaseror upon the Solicitor acting for the party on whom tender is desired, and it shall besufficientthatanegotiablecertifiedchequebetenderedinsteadofcash.


DocumentsanddischargesIf a discharge of any lien under thePersonalPropertySecurityAct or a discharge of anycharge/mortgageheldbyacorporationincorporatedpursuanttotheLoanCompaniesAct(Canada), Chartered Bank, Trust Company, Credit Union, Caisse Populaire or InsuranceCompany,andwhichisnottobeassumedbythepurchaseronclosing,isnotavailableinaregistrable form on closing, then the purchaser agrees to accept the vendors= lawyer=spersonal undertaking to obtain, out of the closing funds, a discharge of such lien orcharge/mortgageinaregistrableform,andtoregisterthesamewithinareasonableperiodof time after closing; provided that on or before closing, the vendors shall provide thepurchaserwith amortgage statement duly preparedby themortgagee or the lienholdersetting out the balance required to obtain the discharge in question, together with adirectiondulyexecutedby thevendordirectingpayment to themortgageeor lienholder, oftheamountrequiredtoobtainthesaiddischargeoutofthebalancedueonclosing.Notices:The parties hereto appoint their respective solicitors as their authorized agents for thepurpose of sending and receiving any notices pursuant to this agreement. All noticesshallbeinwriting. Thisoffer,anycounteroffer,noticeofacceptancethereoforanyothernotices contemplated by this agreement shall be deemed to be given when it is handdelivered to the solicitor towhom the notice is addressed, at the address provided forherein,orwhereanynoticeissentbytelecopier,whenitissotransmittedelectronicallytothefacsimilenumberprovidedforherein.

Vendors=solicitors:

Address:Telephonenumber:Faxnumber:e‐mailaddress:attention:

Purchasers=solicitors:Address:Telephonenumber:Faxnumber:e‐mailaddress:attention:


TimeoftheessenceTime shall be of the essence, provided that time for doing or completing any mannerprovidedforhereinmaybeextendedorabridgedbyanagreementinwritingsignedbythevendors and the purchasers, or their respective solicitors who may be specificallyauthorizedinthatregard. General

_ Eachpartytopaythecostsofregistrationandtaxesonhisorherowndocuments.

_ This Offer and its acceptance to be read with all changes of gender or numberrequiredbythecontext.

_ IntheeventoffailureonthepartofthePurchasertocarryoutthetermshereof,the

depositistoberetainedbytheVendorasliquidateddamagesandnotasapenalty.

_ SectionheadingsarenottobeconsideredpartofthisAgreementandareincludedsolely for convenience of reference and are not intended to be full or accuratedescriptionsofthecontentsthereof.Allschedulesattachedheretoshallformpartofthisagreement.

_ ThisOfferanditsacceptancetobereadwithallchangesofgenderornumberrequiredbythecontext.

_ ThisAgreementshall bebindingupontheheirs,executorsandadministratorsofthepartieshereto.ThisAgreementshallnotbeassignablebyeitherof thepartiesheretowithout the priorwritten consent of the other party. All covenants on thepartofmorethanonepartyshallbebothjointandseveral.

_ AlldollaramountsreferredtointhisAgreementareCanadianfunds;unless

otherwiseprovided.

_ ThisagreementshallbegovernedaccordingtothelawsoftheProvinceofOntario.


_ ThePurchaserandVendoragreethattheirrespectivesignaturesandinitialsonthisOffer to Purchase delivered or sent by telecopier or facsimile machines will beconsideredvalid,acceptableorbindingasiftheywereoriginalsignaturesorinitials.

SeverabilityIf any term, covenant or condition of this agreement or its application to any person orcircumstance shall to any extend be invalid or unenforceable, the remainder of thisagreement, or the application of such term, covenant or condition to persons orcircumstances other than those towhich it is held invalid or unenforceable, shall not beaffectedtherebyandeachterm,covenantorconditionofthisagreementshallbevalidandenforcedtoitsfullestextentpermittedbylaw. BindingAgreementThisOffer,whenacceptedby theVendor, shall constitute abinding contractofpurchaseandsale,andtimeinallrespectsshallbeoftheessenceofthisAgreementDATEDat ,Ontariothis ,200?.INWITNESSWHEREOFIhavehereuntosetmyhandandseal.SIGNED,SEALEDANDDELIVEREDinthepresenceof:

_________________________ Purchaser

The undersigned, hereby accepts the aboveOffer and its terms and covenants, promisesandagreestoandwiththeabove‐namedPurchasertodulycarryoutthesameonthetermsandconditionsabovementioned,andherebyacceptsthedepositof$ .INWITNESSWHEREOFIhavehereuntosetmyhandandseal.SIGNED,SEALEDANDDELIVEREDinthepresenceof:

________________________Vendor


________________________Vendor=sSpouse

SCHEDULE"A"

[PropertyDescription]

Attend at the Registry Office and obtain a proper description. Determine if thedescriptionisacceptableforregistrationpurposes.

SCHEDULE AB@[InsertSpecificListofEquipmentandFixtures]

QuiteoftentheVendor=sinsurancepolicywillhaveaverydetailedlistofthe

machinery,equipmentandfixtures.

COMMENTComment: Top of Form 1 Bottom of Form 1