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

Packaging Materials. Both parties agree generally to segregate packaging materials (including pallets, topframes and separator sheetsa) and maintain separate stocks of packaging material. The initial Anchor shall purchase its inventory of packaging materials owned Packaging Components using the following procedure. Anchor shall purchase such inventory of Packaging Components from a supplier designated by Constar shall AB at a price designated by AB (such price may be determined by a physical inventory on July 31, 2002 which shall be documented by Constar, subject different from the price agreed 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 between AB and Crownsuch supplier), and those then Anchor will charge AB for Packaging Components, as delivered to AB with a Bottle shipment, at Crown’s Prestona price not greater than the price originally paid by Anchor to purchase such Packaging Components. AB will pay Anchor for the handling, Maryland pallet repair facility, shall be allocated as mutually agreed at the time assembly and insertion 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 Packaging Components in accordance with the then-effective fee schedule for various sorting and repair services as they are charged charges set forth in Attachment 3.1. (b) Some of the Bottles being delivered from the Production Facilities prior 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 start of this Agreement have been delivered in the fee schedule form of bulk shipments, as further described below. Anchor will continue to deliver those Bottles in bulk, and AB shall be made with 60 days advance have the option, on six (6) months' written notice to Constar Anchor, to require it to ship and deliver any or all of the remaining Requirements in bulk. If AB exercises this option, Anchor shall not insert or use any of the Packaging Components in the affected deliveries. For such bulk deliveries, Anchor shall subtract the cost of the Packaging Components and the service charges of Anchor for their handling, assembly and insertion from the Selling Prices for Bottles, but it may add to the Selling Prices for bulk delivery the costs of bulk palletizing materials used and paid for by Anchor, including pallets, top frames and tier sheets; provided, that such additional costs shall not exceed those approved by AB. However, if AB exercises this option it will (i) repurchase any remaining inventory of Packaging Components that it had previously supplied to Anchor, and which Anchor is not able to use otherwise for AB and (ii) reimburse Anchor for its net capital costs incurred to change to bulk delivery, taking into consideration any salvage value obtained for equipment no longer needed by Anchor. Examples for determining existing bulk pricing and any future conversions to bulk pricing are set forth in Attachment 3.6.