Pay-Per-Fill Contract Snippets 

10.1 Responsibilities of BREWER

During the term of this Agreement, BREWER is required to provide KL with the following information: (1) Date of Kegs shipped to a wholesaler, (2) number of kegs, (3) by size, and (4) any invoice or purchase order reference number that the BREWER’s wholesaler will recognize with regards to the reported shipment. This information is required to allow KL to track inventory movements and accurately invoice wholesalers for keg deposits on a timely basis.

BREWER has the option to submit this information in a report format, once a week, once per month, with all reporting for the month due by no later than the 5th of the following month. Any failure to notify KL of keg shipments out of the brewery during the month, will incur a penalty of $5.00 per keg not reported during the month. BREWER can also supply weekly reports showing all keg movements, per discussion with KL.

If BREWER owns and operates a “Taproom”, then BREWER is required to report a total of Kegs sold in the Taproom for the previous month by no later than the 5th day of the following calendar month. BREWER only has to report the number of kegs by size, no other data is required.

Additionally, BREWER shall maintain accurate records reflecting monthly ending inventories of kegs. BREWER is required to supply KL with a total keg inventory count once per month; a count including all full kegs, all empty kegs on hand, plus any kegs on-tap in BREWER’s taproom if applicable. Failure to report the end of the month inventory on hand report, will result in a $250.00 administration charge, provided that KL has given written notice to BREWER that such report has not been so provided and BREWER has not provided such report to KL within ten (10) business days after receipt of such written notice.

2.7 Surcharge for Extended Keg Inactivity

In the event that kegs requested to be delivered to BREWER (or any third-party owned BREWER facilities utilized by BREWER) pursuant to Section 2.6 are not shipped to a Wholesaler or utilized in relation to other sales contemplated by this Agreement (e.g. self-distributed sales or on-site pub operations) within one hundred twenty (120) days after the date on which KL delivers such kegs, a five dollar ($5.00) per keg inactivity surcharge will be payable for the affected kegs. A further five-dollar ($5.00) per keg inactivity surcharge will be imposed with respect to each thirty (30) day increment or fraction thereof which elapses after the initial one hundred twenty (120) days until actual shipment to a Wholesaler or other permissible utilization of such KL kegs occurs.

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