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<br />ATTACHMENT 11-8 <br />COMMODITY PRICE ASSURANCE MECHANISM <br /> <br />The Authority relies on the Contractor to use its extensive experience in <br />commodity marketing and commercial relationships in both domestic and foreign <br />markets to obtain the best available prices ("Market-high Prices") for the <br />materials recovered at the Shoreway MRF ("MRF Commodities'''). <br /> <br />To ensure that the Contractor is exerting its best efforts to obtain Market-high <br />prices, the Authority will, on a monthly basis, compare the prices at which <br />Contractor has sold MRF Commodities to the market-high price for the same <br />categories of commodities for the same month, as determined by the Authority <br />using either or both of the methodologies described below; the Fiber Commodity <br />Price Assurance Index, or the Market Price Survey. The Authority may select in <br />its discretion, which of the methodologies will be used each month and the <br />Authority may determine Market-high prices using either of the methodologies for <br />different commodities. <br /> <br />Market-high and Contractor-obtained prices will be determined for the following <br />categories <br />1. Fiber <br />a.OCC <br />b. ONP <br />c. MP <br />2. Metals <br />a. Aluminum <br />b. Tin <br />3. Plastics <br />a. PETE <br />b. HOPE Natural <br />c. HOPE Color <br />d. Mixed 3-7 <br />4. Other categories that may be collected by at the MRF <br /> <br />If the average price for sales of MRF commodities in any of these categories is <br />lower than the Market-high price as determined by the Authority's monthly <br />assessment, Contractor will owe the Authority an amount equal to the difference <br />between the actual monthly average sale price and the monthly average Market- <br />high price multiplied by the number of Tons sold during the month. <br /> <br />A. Fiber Commodity Price Assurance Index: <br />Contractor will compile data and perform calculations necessary to allow a <br />comparison, on a monthly basis, between the prices at which Contractor sold <br />three fiber commodities with an established industry index, appropriately <br />adjusted. <br /> <br />Facility Agreement, Attachment 11 B <br />Commodity Price Assurance Mechanism <br />Page 1 of 3 <br />