The amount of "Entitlement Monies" payable to each Entitlement Band are calculated using the "equity formula" and are listed in the attached Schedule. Reference should be made, in particular, to columns 12 through 16 inclusive. The total amount of an Entitlement Band's "Entitlement Monies" is composed of its "Equity Payment", "Minerals Payment" and, where applicable, its "Honour Payment".

1.Equity Payment - This amount is determined by taking the respective "Equity Quantum" of an Entitlement Band and multiplying the same by $262.19 per acre. (The sum of $262.1.9 represents the average price per acre of unimproved farm land in Saskatchewan in 1989, as determined by the Treaty Commissioner's Report.)

2. Minerals Payment - This amount equals the Shortfall Acres of an Entitlement Band multiplied by $45.00 per acre. (The sum of $45.00 represents the average price per acre of Minerals throughout the Province as determined by the Province of Saskatchewan.)

3. Honour Payment - Four (4) of the Entitlement Bands would have received a greater amount of land using the "Saskatchewan Formula" than the amount calculated using the "equity formula" under the Framework Agreement. As such, it was recommended by the Treaty Commissioner that an amount should be paid to these Entitlement Bands to compensate for the shortfall. The compensation was based on the average value of unimproved Crown land, and is calculated using the figure of $141.81 per acre multiplied by the excess of the Entitlement Band's Saskatchewan Formula Quantum acreage minus its Equity Quantum acreage.

TLE (Sask.) Fund

The Framework Agreement contemplates a 12 year payment arrangement. However, pending the finalization of an Entitlement Band's Band Specific Agreement (being the agreement to be finalized between the Entitlement Band and Canada to commence the release of Entitlement Monies by Canada to the Entitlement Band), all of its Entitlement Monies will be maintained on deposit in the Treaty Land Entitlement (Saskatchewan) Fund (hereinafter referred to as the "Fund"). This Fund will be administered by Canada in Canada's consolidated revenue fund. The schedule of payments is referenced in columns 19 through 23 inclusive of Schedule 1 to the Framework Agreement.

Cost Sharing of Contributions

Saskatchewan and Canada will pay their respective share of the settlement funds (70% Canada /30% Saskatchewan) into this Fund. Saskatchewan will make its payments to Canada after which Canada will make its payment (and deliver Saskatchewan's payment) to the Entitlement Bands.

Initial Payment

Saskatchewan will begin making its payments to this Fund within thirty (30) days of September 22, 1992, (being the date that Canada and Saskatchewan executed the Framework Agreement). For the four (4) Entitlement Bands that did not sign the Framework Agreement on September 22, 1992, but "adhere" to the Framework Agreement not later than March 1, 1993, Saskatchewan shall start to make payments to the Fund within sixty (60) days of the date that the Entitlement Band adheres to the Framework -Agreement in accordance with the provisions of Article 10. Saskatchewan's monies on deposit in this Fund will earn interest from the date of their deposit to the Fund.

Interim Payment Arrangements

Until such time as Canada passes legislation enabling it to hold its own money in the consolidated revenue fund on an interest-bearing basis (in the Framework Agreement this is referred to as establishment of the "Special Purpose Account"), Canada shall continue to appropriate funds through Parliament annually to fund the settlement. If an Entitlement Band signs a Band Specific Agreement before the legislation establishing the Special Purpose Account is in place, Canada will make a direct payment to the Entitlement Band, within thirty (30) days of executing its Band Specific Agreement. Canada will also pay over those monies (plus accrued interest) on deposit in the Fund which were paid by Saskatchewan for the Entitlement Band.

Special Purpose Account

Upon enactment of legislation establishing the Special Purpose Account, Canada shall pay any undistributed portion of appropriated funds which have not yet been paid to an Entitlement Band to the Special Purpose Account. All funds received from Saskatchewan which are still on deposit in the Fund for an Entitlement Band will be paid to the Special Purpose Account. Thereafter, all payments by both governments during the remainder of the term of the Framework Agreement will be administered through the Special Purpose Account (still to be known as the Treaty Land Entitlement (Saskatchewan) Fund").

Canada and Saskatchewan's payments will be due to this Fund on or before June 30th of each year. Entitlement Bands that have executed a Band Specific Agreement will, subsequent to their first payment of funds, continue to be paid their scheduled annual instalment from the Fund on or before August 31st of each year. Provisions are also included in the Framework Agreement for interest on late payment of funds by either government.

Entitlement Fund Spending Requirements

In order for any funds to be paid to an Entitlement Band, there must be both a Band Specific Agreement and a Trust Agreement. Among other things, the Trust Agreement will govern the manner in which Entitlement Monies are invested and spent by the Band and its Trustees. A model trust agreement is set forth in Schedule 5 of the Framework Agreement, but section 3.14 contains mandatory principles that must be contained in such an Agreement. Each Entitlement Band must establish a Trust Account to which Canada shall pay the Entitlement Monies from the Fund. Prior to the date when an Entitlement Band has acquired Entitlement Reserve land equal to the amount of its particular "Shortfall Acres" (the Entitlement Band's "Shortfall Acres Acquisition Date"), the capital portion of the money deposited to the Entitlement Band's Trust Account may only be used for the purchase of land or the associated minerals and improvements.

There is one exception to this rule. An Entitlement Band may withdraw up to a maximum of $300,000.00 for Band Development purposes. Otherwise, the funds are only to be used to purchase an amount of land equal to the Shortfall Acres for that Band. The Shortfall Acres for each Entitlement Band are listed in column 4 of Schedule 1 to the Framework Agreement.

After an Entitlement Band has attained. its Shortfall Acres (and the land has been granted Entitlement Reserve status) the capital portion of the Entitlement Monies in the Trust Account may be used for "Band Development" purposes, some of which may be stipulated in the Band's Trust Agreement.

For those Entitlement Bands that fail to execute a Band Specific Agreement within three (3) years of the date Canada and Saskatchewan signed the Framework Agreement, Canada and Saskatchewan shall cease to make further payments to the Fund and any monies paid by them into the Fund shall be reimbursed to them.

Required NRTA Amendments

The Framework Agreement also requires the passage of certain statutory amendments to the Natural Resources Transfer Agreement, the terms of which amendment were agreed to. The Framework Agreement permits Saskatchewan to elect to cease making its payments to the Fund should Canada fail to pass the agreed upon amendment by July 1, 1993. In the event that Saskatchewan is in a position to and does exercise this right, Canada is required to make Saskatchewan's payments to the Fund on Saskatchewan's behalf until such time as the NRTA amendment is actually passed. Saskatchewan will then be required to pay back to Canada those monies paid on its behalf to the Fund, plus accrued interest at an agreed upon rate.

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