Page 540 - Aida Hovsepian Onboarding

[Choose one of the following clauses]

[ ] The Price for each Product mutually agreed upon and set forth in the CPS remains fixed for a period
of [ # ] months from the Effective Date (the “Pricing Period”). Thereafter, the Price may only be updated
or amended upon mutual agreement between the Co-op and Supplier. Any Price change mutually
agreed to by the Co-op and Supplier does not take effect until 30 days after such mutual agreement
(except in cases where the Co-op expressly agrees to a shorter notice period). If the Co-op and Supplier
are unable to agree upon any changes in Price pursuant to this Agreement, then the then-effective Price
remains effective until the parties agree otherwise or this Agreement is terminated pursuant to the SSA.
Supplier shall upload updated Prices for each subsequent Pricing Period into the CPS no later than the
th
5 day of the month prior to the current Pricing Period’s expiration.
[ ] The Price for each Product mutually agreed upon and set forth in the CPS (per the SSA) remains
fixed for a period of [ # ] months from the Effective Date (the “Pricing Period”), and may change every [
# ] month(s) thereafter pursuant to the Formula Pricing Terms in this Addendum. Supplier shall upload
th
updated Prices for each subsequent Pricing Period into the CPS no later than the 5 day of the month
prior to the current Pricing Period’s expiration.

Section 4 - Price Effective Definition. (required)

With respect to all Products sold to a Selected Buyer, the Price for each Product is the Price in effect as
of the date the product is [CHOOSE ONE: [ordered by] or [delivered to] or [shipped to] the Selected
Buyer.

Section 5 - Formula Definitions and Pricing.

Definitions

 Market Definitions
o Commodity/ Futures Exchange, Markets, and Calculations
 ex: CME – Barrel/ Block
 “Pricing for the upcoming month is based on the average barrel or block market
th
price from the 15 of the prior month to the 14 of the current month.”
th
 ex: CME – Class III Milk
 “Pricing for the upcoming month reflects the market price from two months prior.
st
(ex: pricing for September 1 is based on the Class III Milk price from the month
of June.)”
 ex: Intercontinental Exchange (“ICE”) – Green “C”
 “The average cost of coffee futures contracts traded on ICE covering the time
period chosen by the Co-op for which prices are to be established (the “____”).
The Co-op shall notify Supplier when it wishes to establish prices and the
Pricing Period to be covered. Such coffee prices are established at least one
month in advance of the effective date of the Pricing Period and in accordance
with the schedule attached as Exhibit __.”

o Market Differential

 Component Definitions
o “Component Type – [insert term and definition]
 ex: “Overage” – labor, overhead and packaging – fixed through the Addendum Term.”

Formula Pricing Terms