Common use of Recoverable Costs Clause in Contracts

Recoverable Costs. A separate packaging and collection charge for the Raw Materials at the inception of this Agreement shall be *** per pound — cardboard/pallet or *** per pound — BPI plastic vat, respectively. This charge shall be reviewed annually and adjusted as necessary (either up or down), with the goal to ensure that it closely approximates NBP’s actual “Recoverable Costs,” as identified below. Recoverable Costs shall include the actual labor costs, including fringe benefits as defined below, for production workers involved with collection of the Raw Materials and other recoverable costs associated with the collection and packaging of the Raw Materials (as may be agreed upon by the parties) that NBP incurs specifically for the purpose of collecting and/or packaging the Raw Materials. In addition to labor costs, these costs may include equipment installation and other similar costs to be borne by NBP. Before inclusion as a Recoverable Cost, the parties will review and determine efficacy and, if installed, proper amortization schedule for inclusion in Recoverable Costs. Where actual costs are not reasonably available, NBP may use standard or estimated costs, subject to adjustment to actual costs at the end of each fiscal year. NBP agrees that expenses charged to BPI shall be reasonable in kind and amount. The number of full-time employees utilized by NBP to produce the Raw Materials will vary by Location. The parties shall review the headcount and productivity for each Location on at least a quarterly basis. Fringe benefits include, without limitation, company paid employment taxes, company paid health, life and disability insurance, workers compensation costs, vacation days, paid holidays, deferred compensation benefit/bonus contributions and other similar fringe benefits mutually agreed to, and consistent with fringe benefits of similar employees of NBP. For the convenience of the parties, the recovery for fringe benefits will be expressed as a percentage of the direct labor costs. NBP may vary the percentage figure used on a monthly basis as may be required from time to time to obtain full recovery. The dollar amount of the recovery of fringe benefits shall be determined by multiplying the labor cost of the hourly workers employed in the collection of Raw Materials by a fraction, the numerator of which is the total fringe benefit costs for NBP’s applicable Location and the denominator of which is the total direct labor cost for the applicable Location. In the event of a significant unexpected increase in benefit costs, the parties will engage in good faith re-negotiation to ensure the aims and purposes of this Agreement are being met. Notwithstanding the provisions of this Section 6, in no event will the employees of NBP be deemed to be employees of BPI for any purpose.

Recoverable Costs. A Buyer and Seller have negotiated a separate packaging and collection charge for the Raw Materials at Materials. At the inception Inception of this Agreement shall Agreement, that charge will be $*** per pound — cardboard/pallet or *** per pound — BPI plastic vat, respectivelypound. This charge shall be reviewed annually and adjusted as necessary (either up or down), with the goal to ensure that it closely approximates NBP’s Sellers actual “Recoverable Costs,” , as identified below. Recoverable Costs shall include the actual labor costs, including fringe benefits as defined below, for production workers involved with collection of the Raw Materials and other recoverable costs associated with the collection and packaging of the Raw Materials (as may be agreed upon by the parties) that NBP Seller incurs specifically for the purpose of collecting and/or packaging the Raw Materials. In addition to labor costs, these costs may include equipment installation and other similar costs to be borne by NBPSeller. Before inclusion as a Recoverable Cost, the parties will review and determine efficacy andefficiency, and if installed, proper amortization schedule for inclusion in Recoverable Costs. Where actual costs are not reasonably available, NBP Seller may use standard or estimated costs, subject to adjustment to actual costs at the end of each fiscal year. NBP Seller agrees that expenses charged to BPI Buyer shall be reasonable reasonably in kind and amount. Buyer shall have the right to reject any Recoverable Costs that are unreasonable (as determined by Buyer in its sole discretion). The number of full-time employees utilized by NBP Seller to produce the Raw Materials will vary by Location. The parties shall review the headcount and productivity for each Location on at least a quarterly basis. Fringe benefits include, without limitation, company paid employment taxes, company paid health, life and disability insurance, workers compensation costs, vacation days, paid holidays, deferred compensation benefitbenefits/bonus contributions and other similar fringe benefits mutually agreed to, and consistent with fringe benefits of similar employees of NBPSeller. For the convenience of the parties, the recovery for fringe benefits will be expressed as a percentage of the direct labor costs. NBP Seller may vary the percentage figure used on a monthly basis as may be required from time to time to obtain full recovery. The dollar amount of the recovery of fringe benefits shall be determined by multiplying the labor cost costs of the hourly workers employed in the collection of Raw Materials by a fraction, the numerator of which is the total fringe benefit benefits costs for NBPSeller’s applicable Location and the denominator of which is the total direct labor cost for the applicable Location. In the event of a significant unexpected increase in benefit costs, the parties will engage in good faith re-negotiation to ensure the aims and purposes of this Agreement are being met. Notwithstanding the provisions of this Section 6, in no event will the employees of NBP Seller be deemed to be employees of BPI Buyer for any purpose. *** Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.