Page 7

63. Vendor understands that it must notify the WV WIC Program of any changes, i.e., a decrease or increase in number of cash registers, which may affect an authorized WIC Vendor’s peer group classification. The WV WIC Program may change the Vendor’s peer group classification due to changes in methodology being used to determine classification or updated Vendor information. 64. Vendor understands that it must comply with the vendor selection criteria throughout the Agreement period, including any changes to the criteria. Failure by Vendor to meet these criteria will result in sanction assessment and/or termination of the Agreement. Using the current vendor selection criteria, the WV WIC Program may reassess the Vendor at any time during the Agreement period. 65. Vendor understands that the use of any USDA service mark, including the WIC acronym may not be used in a manner which states or implies that the Vendor itself is affiliated with or sponsored by the State Agency, USDA or WIC Program. Vendor Sanctions and Appeals Process 66. Vendor shall have the right to appeal the WV WIC Program's decision pertaining to denial of application to become an authorized Vendor, disqualification or any other adverse action which affects participation during the period of the Vendor Agreement. All adverse actions which may be subject to administrative appeal are listed in the WV WIC Program's Fair Hearing Policy for Vendors located in the Vendor Handbook. All adverse actions not subject to administrative appeal are: i. The validity or appropriateness of the State agency's vendor limiting criteria or vendor selection criteria for minimum variety and quantity of supplemental foods, business integrity, and current Supplemental Nutrition Assistance Program (SNAP) disqualification or civil money penalty for hardship (§246.12(g)(3)); ii. The validity or appropriateness of the State agency's selection criteria for competitive price, including, but not limited to, vendor peer group criteria and the criteria used to identify vendors that are above-50-percent vendors or comparable to above-50-percent vendors; iii. The validity or appropriateness of the State agency's participant access criteria and the State agency's participant access determinations; iv. The State agency's determination to include or exclude an infant formula manufacturer, wholesaler, distributor, or retailer from the list required pursuant to §246.12(g)(11 v. The validity or appropriateness of the State agency's prohibition of incentive items and the State agency's denial of an above-50-percent vendor's request to provide an incentive item to customers pursuant to §246.12(h)(8) vi. The State agency's determination whether to notify a vendor in writing when an investigation reveals an initial violation for which a pattern of violations must be established in order to impose a sanction, pursuant to §246.12(l)(3) vii. The State agency's determination whether a vendor had an effective policy and program in effect to prevent trafficking and that the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation (§246.12(l)(1)(i)(B)) viii. Denial of authorization if the State agency's vendor authorization is subject to the procurement procedures applicable to the State agency ix. The expiration of a vendor's agreement x. Disputes regarding food instrument, EBT, or cash-value voucher payments and vendor claims (other than the opportunity to justify or correct a vendor overcharge or other error, as permitted by §246.12(k)(3) 67. Vendor understands the WV WIC Program may disqualify and/or sanction a Vendor for reasons of Program abuse as set forth in the WV WIC Vendor Handbook, WV WIC Sanction Policy and Listing, and this Agreement. Vendor further understands that the sanctions found in the WV WIC Sanction Policy and Listing have been structured in such a way as to take into account the relative severity and type of conduct listed. Vendor shall be familiar with those violations found in the WV WIC Vendor Handbook, Sanction Policy and Listing, and this Agreement to take appropriate measures in implementing safeguards to prevent their occurrence. 68. Vendor understands the sanctions found in WV WIC Sanction Policy and Listing do not take into account whether the violations represented Vendor policy, occurred with or without management knowledge, were the actions of an individual, agent, employee or representative who did not understand WV WIC Program rules, or if prior warning and an opportunity for correction was provided to the Vendor. Page 7 of 12