Extra Sigatoka control costs definition

Extra Sigatoka control costs means the excess, if any, of costs incurred by Banadex/El Retiro for sigatoka control during the first 12 weeks after the end of the strike over the Sigatoka control costs incurred by Buyer’s affiliate for the comparable 12-week period in 2003, in each case determined on a per hectare basis. Such excess will then be multiplied by the number of hectares operated by Banadex/El Retiro. “Extra Sigatoka control costs” will be determined on a regional basis in each of the three regions in the banana zone of Uraba. • Sellers will pay to Buyer 75% of such direct damages and extra Sigatoka control costs, and Buyer will bear the remaining 25%; provided that the maximum amount of this “sigatoka indemnity” payable by Sellers pursuant to this Section 2 will be $750,000 (unless otherwise agreed by Sellers pursuant to Section 4 below). • This “sigatoka indemnity” will under no circumstances be payable with respect to any banana plants bagged prior to the beginning of the strike. • Sellers will have the burden of demonstrating that any direct Sigatoka damage or extra Sigatoka control costs was not caused by agricultural conditions resulting from the strike. Other causes may include, without limitation, application cycle delays, abnormal weather conditions, lack of well-applied fungicide applications and inadequate airplane equipment. • Sellers shall not have any “sigatoka indemnity” obligation under this Section 2 to pay any direct damage with respect to any banana plant unless Buyer has provided Sellers’ representatives with a reasonable opportunity to inspect the plant for sigatoka disease prior to its being chopped down. • The volume of boxes for which the $3.50 per box Sigatoka indemnity is paid will be subtracted from the parties’ sale/purchase obligations under the Banana Purchase Agreement for the fourth quarter of 2004 in Turbo. Invesmar Limited June 10, 2004
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