Packaging Material. Whether packaging materials are provided by Buyer or sourced by Manufacturer on Buyer’s behalf, it is understood that such amounts shall include, at Buyer’s expense, an allowance for scrap, which shall have the effect of increasing the gross requirements to compensate for expected loss of such materials during manufacturing. Specifically, corrugated shall have a scrap factor of [**], and film shall have a scrap factor of [**]. Scrap factors for other materials shall be as mutually agreed by the parties.
Appears in 2 contracts
Sources: Manufacturing and Supply Agreement (Amplify Snack Brands, INC), Manufacturing and Supply Agreement (TA Holdings 1, Inc.)