Common use of Labor Surcharge Clause in Contracts

Labor Surcharge. (a) The Parties acknowledge and agree that the total cost of labor under The Lion’s collective bargaining agreement with Operating Engineers Local 367 (the “CBA”) is currently $0.77 per case for Brewed Products and $0.64 per case for Pasteurized Soft Drinks. A labor surcharge (the “Labor Surcharge”) will be added to the Base Copacking Fee for bottled Products on each June 1 during the Term (the “Labor Adjustment Date”), in the amount by which Lion’s total cost of labor under the CBA exceeds $0.77 case for Brewed Products and $0.64 per case for Pasteurized Soft Drinks. The Lion shall provide Xxxx’x with reasonable supporting documentation to indicate how total labor cost was calculated. Upon any disagreement as to such calculation, the Parties shall refer the matter to a mutually agreeable independent certified public accounting firm, whose determination shall be final. The costs of such determination shall be borne equally by the Parties, the determination shall be retroactive to the applicable Labor Adjustment Date, and the Parties shall make such payments or credits as are necessary to reflect the determination. (b) If year-over-year Xxxx’x volume growth produced at The Lion as of each Labor Adjustment Date is 15% or greater, the Labor Surcharge will not be added. If volume growth in any year is less than 15% over the prior year, The Lion will calculate the current cost per case for labor under the CBA (or successor agreement) and the impact of the labor cost increase for that year and adjust the Base Co-packing Fee accordingly. The initial base year for calculating volume (the “Base Volume Year”) shall be June 1, 2007 to May 31, 2008, and “volume” shall mean the number of cases of Product delivered. For example, if The Lion delivered 700,000 cases of Product in the Base Volume Year and 806,000 cases during the year ended May 31, 2009, the increase over the previous year exceeds 15%, and there will be no Labor Surcharge for Products produced during the year beginning June 1, 2009. If for the year ended May 31, 2010, volume is 900,000 cases, the increase over the previous year (ending May 31, 2009) is less than 15%, and the Labor Surcharge will be added for the year beginning June 1, 2010, using the cost of labor per case as of May 31, 2010 as the base figure and the cost of labor per case as of June 1, 2010 as the new figure.

Labor Surcharge. (a) The Parties acknowledge and agree that the total cost of labor under The Lion’s collective bargaining agreement with Operating Engineers Local 367 (the “CBA”) is currently $0.77 per case for Brewed Products and $0.64 per case for Pasteurized Soft Drinks. A labor surcharge (the “Labor Surcharge”) will be added to the Base Copacking Fee for bottled Products on each June 1 during the Term (the “Labor Adjustment Date”), in the amount by which Lion’s total cost of labor under the CBA exceeds $0.77 case for Brewed Products and $0.64 per case for Pasteurized Soft Drinks. The Lion shall provide Xxxx’x with reasonable supporting documentation to indicate how total labor cost was calculated. Upon any disagreement as to such calculation, the Parties shall refer the matter to a mutually agreeable independent certified public accounting firm, whose determination shall be final. The costs of such determination shall be borne equally by the Parties, the determination shall be retroactive to the applicable Labor Adjustment Date, and the Parties shall make such payments or credits as are necessary to reflect the determination. (b) If year-over-year Xxxx’x volume growth produced at The Lion as of each Labor Adjustment Date is 15% or greater, the Labor Surcharge will not be added. If volume growth in any year is less than 15% over the prior year, The Lion will calculate the current cost per case for labor under the CBA (or successor agreement) and the impact of the labor cost increase for that year and adjust the Base Co-packing Fee accordingly. The initial base year for calculating volume (the “Base Volume Year”) shall be June 1, 2007 to May 31, 2008, and “volume” shall mean the number of cases of Product delivered. For example, if The Lion delivered 700,000 cases of Product in the Base Volume Year and 806,000 cases during the year ended May 31, 2009, the increase over the previous year exceeds 15%, and there will be no Labor Surcharge for Products produced during the year beginning June 1, 2009. If for the year ended May 31, 2010, volume is 900,000 cases, the increase over the previous year (ending May 31, 2009) is less than 15%, and the Labor Surcharge will be added for the year beginning June 1, 2010, using the cost of labor per case as of May 31, 2010 as the base figure and the cost of labor per case as of June 1, 2010 as the new figure. 4.