Common use of LOSS OF CERTIFICATION AND THE PRIVILEGE TO USE THE MARKS Clause in Contracts

LOSS OF CERTIFICATION AND THE PRIVILEGE TO USE THE MARKS. Loss of certification and the privilege to use the Marks shall be the penalty for a Signatory Handler’s failure to comply with the terms of this Agreement. However, the Board may additionally seek any remedy or penalty authorized by the Marketing Act of 1937 or federal trademark law to enforce the provisions of this Agreement. Loss of certification and the privilege to use the Marks shall be progressive, as follows: 1. The first flagrant or repeated violation shall result in decertification for a minimum two-week period, during which the handler loses the right to use the marks. A flagrant or repeated violation is a violation that meets one of the following three criteria: a. The Signatory Handler knew the product was packaged or produced in violation of either the Handler or the Grower Best Management Practices, and chose to proceed regardless. b. The Signatory Handler had received either a prior written Notice of Violation for the same type of violation or prior written Notices of several different violations of either the Handler or the Grower Best Management Practices. c. The Signatory Handler had received a prior written Notice of Violation for same type of violation of record keeping requirements during the current and prior growing season or Notices of Violation for several different violations of the record keeping requirements during the current and prior growing season. Following the specified period of decertification and loss of the right to use the Mark(s), a handler will not be recertified until the signatory Handler has successfully completed a compliance audit and any required corrective actions stemming from that audit. [Amended 3/5/2008] 2. A flagrant or repeated violation following a decertification action shall result in an indefinite suspension of certification and the privilege to use the Mark(s) until the Signatory Handler has successfully completed a compliance audit and any required corrective actions stemming from that audit. [Amended 3/5/2008] 3. A flagrant or repeated violation following implementation of a CAP shall result in an indefinite revocation of certification and the privilege to use the Mark(s). Certification and the privilege to use the Mark(s) shall not be restored to a Signatory Handler for a minimum of two years unless the Signatory Handler demonstrates to the satisfaction of the inspecting and/or process verification agency and the Board a significant change in management and brand. 4. The Board may accelerate the progression if the Signatory Handler’s product seriously affects a person’s health and the Signatory Handler handled the product with intentional or reckless disregard for the Signatory Handler’s obligations under this Agreement. 5. Imposition of penalties shall be subject to prior informal hearing before an independent arbiter on no less than seventy-two hours written notice prior to effective date of the imposition. The decision of the independent arbiter shall be final and binding on the Signatory Handler and the Board. The Department, advised by the Board, reserves all rights and prerogatives of the Department head under the Administrative Procedures Act, including, but not limited to, the power to declare a decision precedential and additionally, the power under the Marketing Act to clarify what constitutes a violation A Signatory Handler’s withdrawal from the Agreement under Section Article XII, Section B. shall not abrogate the effect of any action taken under Section D against that Signatory Handler or any successor of that Signatory Handler.

LOSS OF CERTIFICATION AND THE PRIVILEGE TO USE THE MARKS. Loss of certification and the privilege to use the Marks shall be the penalty for a Signatory Handler’s failure to comply with the terms of this Agreement. However, the Board may additionally seek any remedy or penalty authorized by the Marketing Act of 1937 or federal trademark law to enforce the provisions of this Agreement. Loss of certification and the privilege to use the Marks shall be progressive, as follows: 1. The first flagrant or repeated violation shall result in decertification for a minimum two-week period, during which the handler loses the right to use the marks. A flagrant or repeated violation is a violation that meets one of the following three criteria: a. The Signatory Handler knew the product was packaged or produced in violation of either the Handler or the Grower Best Management Practices, and chose to proceed regardless. b. The Signatory Handler had received either a prior written Notice of Violation for the same type of violation or prior written Notices of several different violations of either the Handler or the Grower Best Management Practices. c. The Signatory Handler had received a prior written Notice of Violation for same type of violation of record keeping requirements during the current and prior growing season or Notices of Violation for several different violations of the record keeping requirements during the current and prior growing season. Following the specified period of decertification and loss of the right to use the Mark(s), a handler will not be recertified until the signatory Handler has successfully completed a compliance audit and any required corrective actions stemming from that audit. [Amended 3/5/2008] 2. A flagrant or repeated violation following a decertification action shall result in an indefinite suspension of certification and the privilege to use the Mark(s) until the Signatory Handler has successfully completed a compliance audit and any required corrective actions stemming from that audit. [Amended 3/5/2008] 3/5/2008 3. A flagrant or repeated violation following implementation of a CAP shall result in an indefinite revocation of certification and the privilege to use the Mark(s). Certification and the privilege to use the Mark(s) shall not be restored to a Signatory Handler for a minimum of two years unless the Signatory Handler demonstrates to the satisfaction of the inspecting and/or process verification agency and the Board a significant change in management and brand. 4. The Board may accelerate the progression if the Signatory Handler’s product seriously affects a person’s health and the Signatory Handler handled the product with intentional or reckless disregard for the Signatory Handler’s obligations under this Agreement. 5. Imposition of penalties shall be subject to prior informal hearing before an independent arbiter on no less than seventy-two hours written notice prior to effective date of the imposition. The decision of the independent arbiter shall be final and binding on the Signatory Handler and the Board. The Department, advised by the Board, reserves all rights and prerogatives of the Department head under the Administrative Procedures Act, including, but not limited to, the power to declare a decision precedential and additionally, the power under the Marketing Act to clarify what constitutes a violation A Signatory Handler’s withdrawal from the Agreement under Section Article XII, Section B. shall not abrogate the effect of any action taken under Section D against that Signatory Handler or any successor of that Signatory Handler.