Common use of Liquidated Damages Collection and Related Expenses Clause in Contracts

Liquidated Damages Collection and Related Expenses. If a members fails to resolve a breach of 14 this agreement through voluntary compliance measures approved by the Enforcement Committee 15 and performed by such member on a timely basis, the member in breach shall pay the liquidated 16 damages amount assessed by the sector within ten days of the end of the voluntary compliance 18 rate of interest equal to the prime rate of interest announced by Bank of America, or such other 19 bank as the Board may select from time to time, as of the last day of the voluntary compliance 20 period plus twelve percent (12%). If a member fails to pay the liquidated damages amount 21 assessed by the Enforcement Committee with interest within thirty days of the end of the 22 voluntary compliance period described above, the sector may pursue legal action to collect the 23 liquidated damages. In addition, in connection with member breaches resulting from an 24 overharvest of a member’s harvest share, the sector (acting through the Enforcement Committee) 25 may take possession of an amount of the member in breach’s harvest share for the overharvested 26 species for the year in which the contract breach occurred and, if necessary, in subsequent years, 27 in a total amount equal to three times the amount of such overharvest, provided that the amount of

Liquidated Damages Collection and Related Expenses. If a members fails to resolve a breach of 14 17 this agreement through voluntary compliance measures approved by the Enforcement Committee 15 18 and performed by such member on a timely basis, the member in breach shall pay the liquidated 16 19 damages amount assessed by the sector within ten days of the end of the voluntary compliance 18 20 period described above. Liquidated damages amounts not paid when due shall accrue interest at a 21 rate of interest equal to the prime rate of interest announced by Bank of America, or such other 19 22 bank as the Board may select from time to time, as of the last day of the voluntary compliance 20 period plus twelve percent (12%). If a member fails to pay the liquidated damages amount 21 24 assessed by the Enforcement Committee with interest within thirty days of the end of the 22 25 voluntary compliance period described above, the sector may pursue legal action to collect the 23 26 liquidated damages. In addition, in connection with member breaches resulting from an 24 27 overharvest of a member’s harvest share, the sector (acting through the Enforcement Committee) 25 28 may take possession of an amount of the member in breach’s harvest share for the overharvested 26 29 species for the year in which the contract breach occurred and, if necessary, in subsequent years, 27 30 in a total amount equal to three times the amount of such overharvest, provided that the amount of

Liquidated Damages Collection and Related Expenses. If a members fails to resolve a breach of 14 44 this agreement through voluntary compliance measures approved by the Enforcement Committee 15 45 and performed by such member on a timely basis, the member in breach shall pay the liquidated 16 46 damages amount assessed by the sector within ten days of the end of the voluntary compliance 18 47 period described above. Liquidated damages amounts not paid when due shall accrue interest at a 1 rate of interest equal to the prime rate of interest announced by Bank of America, or such other 19 2 bank as the Board may select from time to time, as of the last day of the voluntary compliance 20 period plus twelve percent (12%). If a member fails to pay the liquidated damages amount 21 4 assessed by the Enforcement Committee with interest within thirty days of the end of the 22 5 voluntary compliance period described above, the sector may pursue legal action to collect the 23 6 liquidated damages. In addition, in connection with member breaches resulting from an 24 7 overharvest of a member’s harvest share, the sector (acting through the Enforcement Committee) 25 8 may take possession of an amount of the member in breach’s harvest share for the overharvested 26 9 species for the year in which the contract breach occurred and, if necessary, in subsequent years, 27 10 in a total amount equal to three times the amount of such overharvest, provided that the amount of

Liquidated Damages Collection and Related Expenses. If a members Member fails to 15 resolve a breach of 14 this agreement Agreement through voluntary compliance measures approved by the 16 Enforcement Committee 15 and performed by such member Member on a timely basis, the member Member in breach shall pay the liquidated 16 damages amount assessed by the sector within ten days of the end of the 18 voluntary compliance 18 period described in Section 10.9, above. Liquidated damages amounts not paid 19 when due shall accrue interest at a rate of interest equal to the prime rate of interest announced by 20 Bank of America, or such other 19 bank as the Board may select from time to time, as of the last day of the voluntary compliance 20 period plus twelve percent (12%). If a member fails to pay the liquidated 22 damages amount 21 assessed by the Enforcement Committee with interest within thirty (30) days of the 23 end of the 22 voluntary compliance period described in Section 10.9, above, the sector Sector may pursue legal 24 action to collect the 23 liquidated damages. In addition, in connection with member Member breaches resulting 25 from an 24 overharvest over-harvest of a memberMember’s harvest shareHarvest Share, the sector Sector (acting through the Enforcement 26 Committee) 25 may take possession of an amount of the member Member in breach’s harvest share Harvest Share for the 27 overharvested 26 species for the year in which the contract breach occurred and, if necessary, in 28 subsequent years, 27 in a total amount equal to three (3) times the amount of such overharvestover-harvest, provided 29 that the amount ofof a Member’s liability to the Sector for over-harvest shall be reduced proportionately 30 to the extent that the Sector does so. In addition to liquidated damages, the Sector shall be entitled to 2 the Sector prevails in such action.