Common use of Positive Test Clause in Contracts

Positive Test. results for Antibiotics AFTER Milk is collected and has caused the Tanker to return a positive result . Upon customer risk assessment , milk is REJECTED AND DEEMED UNFIT FOR HUMAN CONSUMPTION Supplier will not be paid for this Milk as it has tested positive for antibiotics and is deemed to be in breach of ACM Food Safety Program (see 6.1 for details) and Milk Quality Standards (see Table 3.1). Milk collection will be suspended until a negative vat sample is obtained. Any subsequent positive vat samples taken during this process will not be paid for. Only after a negative sample is achieved, will ACM schedule Milk for collection. In addition, Supplier will be held responsible for costs and expenses incurred by ACM as a result of the positive screening, including but not limited to: − The total cost of all Milk in the Tanker at the current value of the Milk, including Milk collected from other Suppliers; − Any additional freight costs (eg, Farm to disposal site); and − Any applicable disposal costs – (eg, handling of this Milk by EPA approved facilities). A Recipient Created Tax Invoice (RCTI) Credit Note will be raised for the disposal cost and amount owing will be deducted from Supplier’s Milk payment over a 3-month period (or such other period to be determined by ACM acting reasonably). In any case where a Tanker load of Milk has been rejected, ACM is required to notify Dairy Food Safety Victoria of the residue detection within five business days of the initial detection with trace forward details (Part A Tanker). Trace back details (Part B Supplier) will be reported within ten business days of the incident. Supplier will be required to complete a CAR (Corrective Action Report) which is a requirement of ACM’s Food Safety Program. Refer to section 4.3 Management of Non‐Conformance ‐ Incident Report in the ACM Food Safety Program manual.

Positive Test. results for Antibiotics AFTER Milk is collected and has caused the Tanker to return a positive result . Upon customer risk assessment , milk is REJECTED AND DEEMED UNFIT FOR HUMAN CONSUMPTION Supplier will not be paid for this Milk as it has tested positive for antibiotics and is deemed to be in breach of ACM Food Safety Program (see 6.1 7.1 for details) and Milk Quality Standards (see Table 3.1). Milk collection will be suspended until a negative vat sample is obtained. Any subsequent positive vat samples taken during this process will not be paid for. Only after a negative sample is achieved, will ACM schedule Milk for collection. In addition, Supplier will be held responsible for costs and expenses incurred by ACM as a result of the positive screening, including but not limited to: − The total cost of all the Milk in the Tanker at the current value of the Milk, including Milk collected from other Supplierssuppliers; − Any additional freight Freight costs (eg, Farm to disposal site); and − Any applicable disposal costs – (eg, handling of this Milk by EPA approved facilities). A Recipient Created Tax Invoice (RCTI) Credit Note will be raised for the disposal cost and amount owing will be deducted from Supplier’s Milk payment over a 3-month period (or such other period to be determined by ACM acting reasonably). In any case where a Tanker load of Milk has been rejected, ACM is required to notify Dairy Food Safety Victoria of the residue detection within five business days of the initial detection with trace forward details (Part A Tanker). Trace back details (Part B Supplier) will be reported within ten business days of the incident. Supplier will be required to complete a CAR (Corrective Action Report) which is a requirement of ACM’s Food Safety Program. Refer to section 4.3 Management of Non‐Conformance ‐ Incident Report in the ACM Food Safety Program manual.