Common use of Productivity Payment Clause in Contracts

Productivity Payment. 4.3.1 In addition to the Minimum Price, a Productivity Payment will be paid monthly by ACM to Supplier if the Supplier meets the conditions for payment set out below. 4.3.2 The Productivity Payment will be paid based on the volume of Milk which the parties, acting reasonably anticipate will be supplied under this Agreement throughout the Term as set out in the following table: Total Volume of Milk supplied per annum as compared with immediately preceding 12 months commencing 1 July in each year 0 to 1 million litres > 1 - 2 million litres > 2 – 3 million litres > 3 - 4 million litres > 4 - 5 million litres > 5 - 6 million litres > 6 million litres Productivity Payment per litre zero 0.5 cents 1 cent 1.5 cents 2 cents 2.5 cents 3 cents 4.3.3 The assessment of whether, and if so how much Productivity Payment should be paid to Supplier will be made with regard to the total amount of Milk supplied by Supplier to ACM during the year immediately prior to the Commencement Date of this Agreement. If the Supplier did not supply Milk to ACM during the year immediately prior to the Commencement Date of this Agreement, an assessment of whether and if so how much Productivity Payment should be paid to Supplier will be determined by ACM, acting reasonably and in consultation with Supplier, estimating what will be the total amount of Milk to be supplied under this Agreement during the Term.

Productivity Payment. 4.3.1 In addition to the Minimum Price, a Productivity Payment will be paid monthly by ACM to Supplier if the Supplier meets the conditions for payment set out below. 4.3.2 The Productivity Payment will be paid based on the volume of Milk which the parties, acting reasonably anticipate will be supplied under this Agreement throughout the Term as set out in the following table: Total Volume of Milk supplied per annum as compared with immediately preceding 12 months commencing 1 July in each year over 2023/24 0 to 1 million litres > 1 - 2 million litres > 2 – 3 million litres > 3 - 4 million litres > 4 - 5 million litres > 5 - 6 million litres > 6 million litres Productivity Payment per litre zero 0.5 cents 1 cent 1.5 cents 2 cents 2.5 cents 3 cents 4.3.3 The assessment of whether, and if so how much Productivity Payment should be paid to Supplier will be made with regard to the total amount of Milk supplied by Supplier to ACM during the year immediately prior to the Commencement Date of this Agreement. If the Supplier did not supply Milk to ACM during the year immediately prior to the Commencement Date of this Agreement, an assessment of whether and if so how much Productivity Payment should be paid to Supplier will be determined by ACM, acting reasonably and in consultation with Supplier, estimating what will be the total amount of Milk to be supplied under this Agreement during the Term.

Productivity Payment. 4.3.1 In addition to the Minimum Early Commitment Price, a Productivity Payment will be paid monthly by ACM to Supplier if the Supplier meets the conditions for payment set out below. 4.3.2 The Productivity Payment will be paid based on the volume of Premium Quality Milk which the parties, acting reasonably anticipate will be supplied under this Agreement throughout the Term as set out in the following table: Total Volume of Milk supplied per annum as compared with immediately preceding 12 months commencing 1 July in each year over 2021/22 0 to 1 million litres > 1 - 2 million litres > 2 – 3 million litres > 3 - 4 million litres > 4 - 5 million litres > 5 - 6 million litres > 6 million litres Productivity Payment per litre zero 0.5 cents 1 cent 1.5 cents 2 cents 2.5 cents 3 cents 4.3.3 The assessment of whether, and if so how much Productivity Payment should be paid to Supplier will be made with regard to the total amount of Premium Quality Milk supplied by Supplier to ACM during the year immediately prior to the Commencement Date of this Agreement. If the Supplier did not supply Milk to ACM during the year immediately prior to the Commencement Date of this Agreement, an assessment of whether and if so how much Productivity Payment should be paid to Supplier will be determined by ACM, acting reasonably and in consultation with Supplier, estimating what will be the total amount of Premium Quality Milk to be supplied under this Agreement during the Term.

Productivity Payment. 4.3.1 In addition to the Minimum Price, a Productivity Payment will be paid monthly by ACM to Supplier if the Supplier meets the conditions for payment set out below. 4.3.2 The Productivity Payment will be paid based on the volume of Premium Quality Milk which the parties, acting reasonably anticipate will be supplied under this Agreement throughout each Financial Year of the Term as set out in the following table: Total Volume of Milk supplied per annum as compared with during immediately preceding 12 months commencing 1 July in each year Financial Year 0 to 1 million litres > 1 - 2 million litres > 2 – 3 million litres > 3 - 4 million litres > 4 - 5 million litres > 5 - 6 million litres > 6 million litres Productivity Payment per litre zero 0.5 cents 1 cent 1.5 cents 2 cents 2.5 cents 3 cents 4.3.3 The assessment of whether, and if so how much Productivity Payment should be paid to Supplier will be made with regard to the total amount of Premium Quality Milk supplied by Supplier to ACM during the year immediately prior to the Commencement Date then current Financial Year of this Agreement. If the Supplier did not supply Milk to ACM during the year immediately prior to the Commencement Date of this Agreement, an assessment of whether and if so how much Productivity Payment should be paid to Supplier will be determined by ACM, acting reasonably and in consultation with Supplier, estimating what will be the total amount of Premium Quality Milk to be supplied under this Agreement during the Term.

Productivity Payment. 4.3.1 In addition to the Minimum Price, a Productivity Payment will be paid monthly by ACM to Supplier if the Supplier meets the conditions for payment set out below. 4.3.2 The Productivity Payment will be paid based on the volume of Premium Quality Milk which the parties, acting reasonably anticipate will be supplied under this Agreement throughout the Term as set out in the following table: Total Volume of Milk supplied per annum as compared with immediately preceding 12 months commencing 1 July in each year over 2021/22 0 to 1 million litres > 1 - 2 million litres > 2 – 3 million litres > 3 - 4 million litres > 4 - 5 million litres > 5 - 6 million litres > 6 million litres Productivity Payment per litre zero 0.5 cents 1 cent 1.5 cents 2 cents 2.5 cents 3 cents 4.3.3 The assessment of whether, and if so how much Productivity Payment should be paid to Supplier will be made with regard to the total amount of Premium Quality Milk supplied by Supplier to ACM during the year immediately prior to the Commencement Date of this Agreement. If the Supplier did not supply Milk to ACM during the year immediately prior to the Commencement Date of this Agreement, an assessment of whether and if so how much Productivity Payment should be paid to Supplier will be determined by ACM, acting reasonably and in consultation with Supplier, estimating what will be the total amount of Premium Quality Milk to be supplied under this Agreement during the Term.