Common use of Packaging Materials Clause in Contracts

Packaging Materials. Both parties agree generally to segregate packaging materials (including pallets, topframes and separator sheets) and maintain separate stocks of packaging material. The initial inventory of packaging materials owned by Constar shall be determined by a physical inventory on July 31, 2002 which shall be documented by Constar, subject to agreement by Crown. That inventory shall recognize that packaging materials on hand at customer locations served exclusively by Constar or Crown will be deemed to belong to Constar or Crown respectively. Packaging materials on hand at customer locations served jointly by Constar and Crown, and those at Crown’s Preston, Maryland pallet repair facility, shall be allocated as mutually agreed at the time of the physical inventory on July 31, 2002. To assist in determining such allocations, Constar shall cause its records of packaging materials on hand at customer locations, and Crown shall cause its records of packaging materials on hand at Preston, Maryland, to be documented and accurate on that date. Over time, Constar agrees to mxxx its packaging materials to distinguish them from Crown’s in cases where they are delivered into a customer location where Crown and Constar packaging materials are co-mingled. Irrespective of whether packaging materials can be distinguished by marks, Crown agrees to return packaging material to Constar without fee, freight to be paid by Constar, upon presentation by Constar of shipment and receiving documentation, net of a reasonable allowance for loss, that evidence Constar-owned packaging materials to be in Crown’s possession. Constar and Crown may agree from time to time to buy and sell packaging materials each from the other. Constar may continue to use the pallet repair services at Preston, Maryland on the same terms as were in effect when Constar was a wholly owned subsidiary of Crown. Crown shall keep good records of receipts, shipments, losses and services rendered in association with its possession and handling of Constar’s packaging materials. The fee for such service shall be determined in accordance with the then-effective fee schedule for various sorting and repair services as they are charged to Crown’s own plants except only that the fees charged to Constar shall exclude allocation for inbound and outbound freight to Preston, Maryland, which shall instead by payable at actual cost by Constar. Any changes in the fee schedule shall be made with 60 days advance written notice to Constar .

Packaging Materials. Both parties agree generally to segregate packaging materials (including pallets, topframes and separator sheets) and maintain separate stocks of packaging material. The initial inventory of packaging materials owned by Constar shall be determined by a physical inventory on July 31, 2002 which shall be documented by Constar, subject to agreement by Crown. That inventory shall recognize that packaging materials on hand at customer locations served exclusively by Constar or Crown will be deemed to belong to Constar or Crown respectively. Packaging materials on hand at customer locations served jointly by Constar and Crown, and those at Crown’s Preston, Maryland pallet repair facility, shall be allocated as mutually agreed at the time of the physical inventory on July 31, 2002. To assist in determining such allocations, Constar shall cause its records of packaging materials on hand at customer locations, and Crown shall cause its records of packaging materials on hand at Preston, Maryland, to be documented and accurate on that date. Over time, Constar agrees to mxxx its packaging materials to distinguish them from Crown’s in cases where they are delivered into a customer location where Crown and Constar packaging materials are co-mingled. Irrespective of whether packaging materials can be distinguished by marks, Crown agrees to return packaging material to Constar without fee, freight to be paid by Constar, upon presentation by Constar of shipment and receiving documentation, net of a reasonable allowance for loss, that evidence Constar-owned packaging materials to be in Crown’s possession. Constar and Crown may agree from time to time to buy and sell packaging materials each from the other. Constar may continue to use the pallet repair services at Preston, Maryland on the same terms as were in effect when Constar was a wholly owned subsidiary of Crown. Crown shall keep good records of receipts, shipments, losses and services rendered in association with its possession and handling of Constar’s packaging materials. The fee for such service shall be determined in accordance with the then-effective fee schedule for various sorting and repair services as they are charged to Crown’s own plants except only that the fees charged to Constar shall exclude allocation for inbound and outbound freight to Preston, Maryland, which shall instead by payable at actual cost by Constar. Any changes in the fee schedule shall be made with 60 days advance written notice to Constar .. [***] Confidential treatment requested