Page 506 - Onboarding May 2017

Item 6 - Formula Definitions and Pricing
 Products may vary over the course of the Term of this Addendum based on customer demand and menu
adjustments.

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 price
from the 15th of the prior month to the 14th of the current month
 ex: CME - Class III Milk
 Pricing for the upcoming month shall reflect the market price from two months prior
(example: pricing for September 1 is based on the Class III milk price from the month of
June)
 ex: Intercontinental Exchange ("ICE") - Green "C"
 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 "Pricing Period"). Co-op shall
notify Supplier when it wishes to establish prices and the Pricing Period to be covered.
Such coffee prices shall be established at least one month in advance of the effective
date of the Pricing Period and in accordance with the schedule attached as Exhibit 1B.
o Market Differential
 Component Definitions
o Component Type - definition and term (example: overage - labor, overhead and packaging - fixed through
the term of the Addendum.

Formula Pricing Terms
Pricing formulas for specified products are as follows. The formulas shown below are for the Addendum term and price
change frequency listed in Item 4. These formulas must be updated and submitted via Excel format every time there is a
price change that was mutually agreed between the Supplier and Co-op.

Pricing Formula

Item Item Market Component Component Component Pricing Notes
Description Number A B C Formula

Product Pricing (NOTE: if you choose to list specific products and their corresponding FOB in the Exhibit, you run
the risk of needing to amend the Exhibit each time a new item is added. If possible, it's recommended that you
instead specify the agreement term date range and price change frequency in Item 4 above, and make it applicable
to all items.)

Brand Product Code Product Description FOB FOB UOM Start Date End Date

Item 7 - Administration Fees

This agreement may contain products that are subject to administration fees (also known as sourcing fees). FOB prices for
any such products will include these fees and be collected by the Supplier and remitted to the Co-op as directed by the
CSCS Controller.

Item 8 - Freight Definitions and Rate Adjustment Terms (Required)
 How often can supplier update Freight to Distributor rates?