Common use of THE DISTRIBUTOR AGREES TO Clause in Contracts

THE DISTRIBUTOR AGREES TO. Be properly authorized through the Wisconsin Department of Transportation and the United States Department of Transportation. Distributor must be in compliance with Federal Motor Carrier Safety regulations. Comply with applicable regulations (7 CFR 210 and 250) and federal/state policy and instructions issued by DPI. Comply with applicable procurement and contracting regulations (2 CFR Part 200) and shall in no way enter into an agreement with a SFA or participate in activities that are in conflict with SFA program compliance responsibilities. Deliver all USDA Foods allocated by DPI to the SFA including further-processed end products (includes further-processed end products only if the SFA is participating in the state-processing program and not in the direct diversion processing program). Sign a Memorandum of Understanding (MOU) with DPI to participate in commercial distribution of USDA Foods. Pick-up, at a minimum of monthly, the SFA’s USDA Foods from the designated state-contracted warehouse (see Attachment A for further details regarding the designated state-contracted warehouse pick-up location). Abide by the following transfer of title requirements: Distributor must give a minimum of 48 hours notice to the designated warehouse to set dock appointments. At the time the distributor picks up an SFA’s USDA Foods, a transfer of title will occur to the SFA. The distributor shall be financially liable for the value of each SFA’s USDA Foods in the distributor’s possession. The distributor will inspect each pallet of USDA Foods for damages and accuracy before removing them from the warehouse. Full pallet ordering and removal from the state-designated warehouse is required. This is to prevent a distributor from breaking down large quantity items into smaller orders. There will be no additional charge for partial pallets if the distributor picks up the entire authorized quantity of USDA Foods for the month. This will allow for identification of USDA Foods, in the event of a USDA Foods Recall. Partial pallets will be allowed when split between distributors. If the distributor picks up product in full truck load increments, the state-designated warehouse will not charge the distributor an order withdrawal fee. A full truck load equates to the full authorized quantity of USDA Foods for the month. Therefore, if the full authorized quantity of USDA Foods is less than a full truck load, there will be no withdrawal fee if the distributor takes the full authorized quantity of USDA Foods at one time. However, if the full authorized quantity of USDA Foods for a distributor is more than one full truck load, but the total does not equal a full truck load increment; there will be no withdrawal fee if the distributor takes the full authorized quantity of USDA Foods at one time (within the same business day during normal warehouse business hours). If the distributor picks up less than a full truck load of product, the state-designated warehouse may charge the distributor an order withdrawal fee. The state-designated warehouse will bill the distributor directly for any applicable order withdrawal fee for pick-up quantities of less than a full truck load. The distributor must pick-up USDA Foods from the state-contracted warehouse by the last day of the distribution month that the SFA requested the product (e.g., if an SFA orders USDA Foods to be delivered to the state-contracted warehouse in September, the distributor has until September 30 to pick-up those USDA Foods). If USDA Foods are not removed from the state-contracted warehouse by the last day of the distribution month that the SFA requested the product, the warehouse will bill the distributor for the additional storage cost. At this time, products will be transferred into the distributor’s storage account on behalf of the SFA. Additional storage charges resulting from the distributor not picking up the product by the last day of the distribution month that the SFA requested the product are the responsibility of the distributor and will not be passed on to the SFA. Pallet exchange with the state-designated warehouse is required. Pallets must be Grade “A”, four-way pallets, 40” x 48.” If pallets do not meet this specification or are in poor condition, the state-designated warehouse may establish a pallet account and invoice the distributor accordingly. The distributor may request the state-designated warehouse to have products palletized; palletization refers to requests for special configuration of a pallet. All products will come on pallets and you will only be charged if you request the product to be palletized in a special configuration. If requested, pallets shall conform to the following: Manufacturers standard 40” x 48” GMS partial 4-way shipping pallets are acceptable. Maximum height: 7’6” (including pallet) Maximum weight: 3,200 pounds (including pallet) Pallets are to be securely banded or shrink wrapped. Pallet exchange is required with all warehouses and will be exchanged for like pallets.

THE DISTRIBUTOR AGREES TO. Be properly authorized through the Wisconsin Department of Transportation and the United States Department of Transportation. Distributor must be in compliance with Federal Motor Carrier Safety regulations. Comply with applicable regulations (7 CFR 210 and 250) and federal/state policy and instructions issued by DPI. Comply with applicable procurement and contracting regulations (2 CFR Part 200) and shall in no way enter into an agreement a contract with a SFA or participate in activities that are in conflict with SFA program compliance responsibilities. Deliver Allocate to the SFA all USDA Foods Direct Delivery and State Processing products allocated by DPI to the SFA including further-processed end products (includes further-processed end products only if during the SFA assigned distribution month per SFA’s Order in the WI USDA Foods Ordering System.. To comply with this requirement, the distributor is participating in encouraged to pick up the SFA’s Order from the state-processing program designated warehouse by the end of the month that the distributor receives notification that the SFA’s Order is available for pick up (e.g., the DPI generates SFA’s September Order by August 15 and not in notifies the direct diversion processing programdistributor to schedule appointments to pick up at state-designated warehouse by August 31. The distributor must make products listed on the September Order available to SFA for delivery to SFA by allocating products during the month of September). . Sign a Memorandum of Understanding (MOU) with DPI to participate in commercial distribution of USDA Foods. Pick-up, at a minimum of monthly, up the SFA’s USDA Foods from the designated state-contracted warehouse (see Attachment A for further details regarding the designated state-contracted warehouse pick-up locationlocations). Abide by the following transfer of title requirements: Distributor must give a minimum of 48 hours notice to the state-designated warehouse to set dock appointments. At the time the distributor picks up an a SFA’s USDA Foods, a transfer of title will occur to the SFA. The distributor shall be financially liable for the value of each SFA’s USDA Foods in the distributor’s possession. The distributor will inspect each pallet of USDA Foods for damages and accuracy before removing them from the state-designated warehouse. Full pallet ordering and removal from the state-designated warehouse is required. This is to prevent a distributor from breaking down large quantity items into smaller orders. There will be no additional charge for partial pallets if the distributor picks up the entire authorized quantity of USDA Foods for the month. This will allow for identification of USDA Foods, in the event of a USDA Foods Recall. Partial pallets will be allowed when split between distributors. If the distributor picks up product in full truck load increments, the state-designated warehouse will not charge the distributor an order withdrawal fee. A full truck load equates to the full authorized quantity of USDA Foods for the month. Therefore, if the full authorized quantity of USDA Foods is less than a full truck load, there will be no withdrawal fee if the distributor takes the full authorized quantity of USDA Foods at one time. However, if the full authorized quantity of USDA Foods for a distributor is more than one full truck load, but the total does not equal a full truck load increment; there will be no withdrawal fee if the distributor takes the full authorized quantity of USDA Foods at one time (within the same business day during normal warehouse business hours). If the distributor picks up less than a full truck load of product, the state-designated warehouse may charge the distributor an order withdrawal fee. The state-designated warehouse will bill the distributor directly for any applicable order withdrawal fee for pick-up quantities of less than a full truck load. The distributor must pick-up USDA Foods from the state-contracted designated warehouse by the last day of the assigned distribution month that the SFA requested the product (e.g., if an a SFA orders USDA Foods to be delivered to the state-contracted designated warehouse in September, the distributor has until September 30 to pick-up those USDA Foods). If USDA Foods are not removed from the state-contracted designated warehouse by the last day of the assigned distribution month that the SFA requested the productmonth, the warehouse will bill the distributor for the additional storage cost. At this time, products will be transferred into the distributor’s storage account on behalf of the SFAaccount. Additional storage charges resulting from the distributor not picking up the product by the last day of the assigned distribution month that the SFA requested the product are the responsibility of the distributor and will not be passed on to the SFA. Pallet exchange with the state-designated warehouse is required. Pallets must be Grade “A”, four-way pallets, 40” x 48.” If pallets do not meet this specification or are in poor condition, the state-designated warehouse may establish a pallet account and invoice the distributor accordingly. The distributor may request the up All USDA Foods products are distributed by state-designated warehouse to have products palletized; palletization refers to requests for special configuration of a palleton pallets. All products will come on pallets and you will only be charged if you request the product to be palletized in a special configuration. If requested, pallets Pallets shall conform to the following: Manufacturers standard 40” x 48” GMS partial 4-way shipping pallets are acceptable. Maximum height: 7’6” (including pallet) Maximum weight: 3,200 pounds (including pallet) Pallets are to be securely banded or shrink wrapped. Pallet exchange is required with all warehouses and will be exchanged for like pallets.