Common use of Sale of Milk Off-Farm Clause in Contracts

Sale of Milk Off-Farm. The Supplier agrees to supply all milk produced at the farm to Norco. Any milk used for the rearing of livestock, or consumed for domestic purposes, at the farm is excluded. A Supplier must apply in writing to Norco Milk Supply requesting approval to sell up to 10% of the Supplier’s weekly farm milk production (to a maximum of 1,250 litres per week) to either a third party or to use for on-farm manufacturing by the Supplier for a maximum 12 month period. The Board will consider the request and make a decision to grant or refuse the request in its absolute sole discretion without being required to provide reasons. After 12 months, a Supplier must resubmit their application in writing to Norco Milk Supply, whereby it will be reviewed by the Board. The third party or Supplier may not sell or manufacture dairy products that directly compete with Norco, its partners or affiliates. Suppliers may not supply third parties which are in direct competition with Norco for farm supply. All milk sold under this policy must meet the minimum state statutory regulations for milk quality and safety. Norco will not transport any such milk to a third party on behalf of the Supplier nor will it undertake testing of such milk. CHAPTER MILK SUPPLY POLICIES CONTINUED

Sale of Milk Off-Farm. The Supplier agrees to supply all milk produced at the farm to Norco. Any milk used for the rearing of livestock, or consumed for domestic purposes, at the farm is excluded. A Supplier must apply in writing to Norco Milk Supply requesting approval to sell up to 10% of the Supplier’s 's weekly farm milk production (to a maximum of 1,250 litres per week) to either a third party or to use for on-farm manufacturing by the Supplier for a maximum 12 month period. The Board will consider the request and make a decision to grant or refuse the request in its absolute sole discretion without being required to provide reasons. After 12 months, a Supplier must resubmit their application in writing to Norco Milk Supply, whereby it will be reviewed by the Board. The third party or Supplier may not sell or manufacture dairy products that directly compete with Norco, its partners or affiliates. Suppliers may not supply third parties which are in direct competition with Norco for farm supply. All milk sold under this policy must meet the minimum state statutory regulations for milk quality and safety. Norco will not transport any such milk to a third party on behalf of the Supplier nor will it undertake testing of such milk. CHAPTER MILK SUPPLY POLICIES CONTINUED.

Sale of Milk Off-Farm. The Supplier agrees to supply all milk produced at the farm to Norco. Any milk used for the rearing of livestock, or consumed for domestic purposes, at the farm is excluded. A Supplier must apply in writing to Norco Milk Supply requesting approval to sell up to 10% of the Supplier’s 's weekly farm milk production (to a maximum of 1,250 litres per week) to either a third party or to use for on-on- farm manufacturing by the Supplier for a maximum 12 month period. The Board will consider the request and make a decision to grant or refuse the request in its absolute sole discretion without being required to provide reasons. After 12 months, a Supplier must resubmit their application in writing to Norco Milk Supply, whereby it will be reviewed by the Board. The third party or Supplier may not sell or manufacture dairy products that directly compete with Norco, its partners or affiliates. Suppliers may not supply third parties which are in direct competition with Norco for farm supply. All milk sold under this policy must meet the minimum state statutory regulations for milk quality and safety. Norco will not transport any such milk to a third party on behalf of the Supplier nor will it undertake testing of such milk. CHAPTER MILK SUPPLY POLICIES CONTINUED.