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2007-242
ORDINANCE NO. 2007-~ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A REGIONAL RECYCLABLES PROCESSING AGREEMENT WITH VISY RECYCLING, INC. (D/B/A PRATT RECYCLING) PROVIDING FOR THE CONSTRUCTION AND OPERATION OF A MATERIALS RECOVERY FACILITY ("MRF") LOCATED AT THE CITY'S LANDFILL; PROVIDING ADDITIONAL AUTHORITY TO THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT AND ANY OTHER RELATED DOCUMENT; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas, having considered the proposed Regional Recyclables Processing Agreement with Visy Recycling, Inc., a Delaware Corporation (d/b/a Pratt Recycling); and having considered the favorable recommendation of the Public Utilities Board to the City Council at its September 24, 2007 meeting; and considering all other relevant factors; and WHEREAS, the City Council finds that there is a substantial need for the hereinabove described facility, and that the City Council has on many prior instances approved and engaged in recycling related pursuits and programs; and WHEREAS, considering the best interests of the City of Denton, Texas, the City Council finds and concludes that the above Agreement is fair, appropriate, and it is in the public interest of the citizens of the City of Denton, Texas; and accordingly should be approved; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations in the preamble are true and correct, and are incorporated herewith as part of this ordinance. SECTION 2. The City Manager is hereby authorized to execute a Regional Recyclables Processing Agreement (the "Agreement"), by and between the City of Denton, Texas and the firm of Visy Recycling, Inc., a Delaware Corporation (d/b/a Pratt Recycling), that relates to the construction and operation of a Materials Recovery Facility by Visy Recycling, Inc. at the City's Landfill Facility, for a term of twenty (20) years, in the form of the Agreement that is attached. hereto and incorporated herein by reference. SECTION 3. The City Manager, is hereby authorized to exercise all rights and duties of the City of Denton, Texas under the Agreement; expressly including the execution and delivery of a Lease Agreement for the rental by the City of Denton, Texas, as Lessor of approximately six (6) acres of the City of Denton Landfill Facility to Visa Recycling, lnc., as Lessee, for a term of twenty (20) years; which Lease Agreement shall be subject to approval by the City Attorney, or his designate. SECTION 4. The expenditure of funds, is hereby authorized, as provided in the attached Agreement. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~-day of _~~~~ , 2007. ` .~ P Y R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CIT SECRETARY By: APP VED TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY REGIONAL RECYCLABLES PROCESSING AGREEMENT This REGIONAL RECYCLABLES PROCESSING AGREEMENT (the "Agreement") is made and entered into as of the 2"d day of October 2007 (the "Effective Date"), by and between the City of Denton, Texas, (the "City"), and Visy Recycling, Inc., a Delaware corporation (d/b/a Pratt Recycling), ("Pratt Recycling"), (together, the "Parties" or individually, a "Party"). WITNESSETH: WHEREAS, Pratt Recycling intends to build, own and operate a Materials Recovery Facility (the "MRF") in the City of Denton, Texas on property owned by the City at the City's Solid Waste Services Site (the "Site"), located in the vicinity of 1100 Mayhill Road, Denton TX, and desires to provide certain processing services at the MRF; and WHEREAS, the City collects or contracts for the collection of residential curbside recyclable material, commercial recyclable material, recyclable drop-off material and other recyclables through miscellaneous means, and desires to contract for the construction and operation of a MRF located at the Site. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Parties, intending to be legally bound, agree as follows: ARTICLE I. WORK AND CONSIDERATION Section 1.01 General. Pratt Recycling and the City agree to provide the labor, materials and equipment and to perform their respective obligations set forth in this Article I pursuant to the terms of this Agreement and for the consideration set forth below. Section 1.02 Exclusive Supply of Recyclables; Acceptance of Recyclables. Subject to the terms and conditions of this Agreement, from the Commencement Date (as defined below) until the termination of this Agreement, the City agrees to supply and deliver exclusively to the MRF all Recyclable Materials (as defined below) collected by the City of Denton or the City's contractors within the city limits of the City and Pratt Recycling agrees to accept all of the City Recyclable Material (as defined below). Section 1.03 Commencement Date. Subject to the terms of this Agreement and the City fulfilling its obligations under this Agreement, Pratt Recycling agrees to begin accepting the City Recyclable Materials on a date (the "Commencement Date") that is no later than September 1, 2008. The Commencement Date is the date on which processing begins. Pratt Recycling shall provide the City notice of the Commencement Date thirty (30) days prior to the actual Commencement Date. A start-up schedule will be negotiated sixty (60) days prior to the Commencement Date. Section 1.04•. Responsibilities of the Citv. The following obligations of the City shall be subject, as applicable, to Pratt Recycling's full compliance with Pratt Recycling's obligations under this Agreement: (a) The City shall provide approximately six (6) acres of property, more specifically identified on Exhibit A hereto, (the "Property") at the Site, for the construction of a MRF. Pursuant to a ground lease between the City and Pratt Recycling or an affiliate of Pratt Recycling (the "Lease"), the City shall lease the Property to Pratt Recycling or an affiliate of Pratt Recycling designated by Pratt Recycling for $0.12 per square foot per year, and the term of the lease shall be coterminous with the term of this Agreement. The first rental payment will be due on or before the first day of the first month following the Commencement Date with equal payments to be made on the same day of each month thereafter throughout the term of the Lease. The rental rate set forth hereinabove is for purposes of the Lease and shall be defined as the "Initial Base Rental Payment." Such initial base rental payment will be the rental due under the Lease for years one (1) through five (5) of the initial twenty (20) year term of the Lease (the "Primary Term"). Prior to the commencement of the first (1st) day of the sixth (6th) year of the Primary Term, and prior to the commencement of each additional five (5) year period thereafter throughout the entire term of the Lease, including any renewal terms (a "Renewal Term"), the rental to be paid by the lessee to the lessor under the Lease shall be subject to adjustment based upon adjustments in the consumer price index, as hereinafrer defined. The initial base rental payment shall be adjusted prior to the commencement of the sixth (6th) year of the Lease to conform to the "Consumer Price Index" now known as U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index, U.S. Cities Average, all items (1967 equal 100). The adjustment at the beginning of year six (6) of the Lease will be accomplished by multiplying the initial base rental payment by a fraction, the numerator of which shall be such index as of the most recent date published prior to the date of adjustment and the denominator of which shall be the most recently published index as of the Commencement Date. The adjustment for each subsequent five (5) year period will be calculated in a similar manner except that rather than using the initial base rental payment as the base rentals from which adjustments will be made, the rental figure for the then current year will be substituted for such initial base rental payment. In no five (5) year period may the rental be increased or decreased more than twenty-five percent (25%) of the rental applicable during the five (5) yeaz period immediately preceding the five (5) yeaz period for which adjustment is to be made. If the index above referred to shall be discontinued, the parties hereto shall attempt to agree upon a substitute index or formula. In the event of dispute between the parties as to the amount of any adjustment, the rates shall be established through the dispute resolution procedures as described in Article VI of this Agreement. (b) The City shall obtain the Texas Commission on Environmental Quality ("TCEQ") Municipal Solid Waste ("MSW") registration for the MRF, and the City shall pay for all costs and fees associated with such registration. Pratt Recycling will need to obtain TCEQ operating approval (MSW, air) as may apply to the type of operation being conducted. Pratt Recycling will provide any necessary facility drawings and operating plans needed to secure the initial registration. Any other permits or registrations that may be required in the future will be the responsibility of Pratt Recycling. If requested by Pratt Recycling, the City will reasonably assist Pratt Recycling in its efforts to obtain such permits. (c) The City shall deliver, or cause to be delivered, all City Recyclable Materials to the MRF during normal operating hours, as designated by Pratt Recycling From time -2- to time, except on designated holidays throughout the Term (as defined below). The City or its contractor shall deliver the Recyclable Materials and unload them at a point within the MRF as may be designated by Pratt Recycling from time to time. (d) The City shall publicize at no cost to Pratt Recycling (other than as described in Section 1.04(e) of this Agreement) a list of Acceptable Recyclable Material and shall update and disseminate the list of Acceptable Recyclable Material as it changes from time to time pursuant to mutual agreement between the City and Pratt Recycling. (e) The City shall continue to promote recycling education during the Term of this Agreement. Pursuant to Section 1.05(1), Pratt Recycling will provide $0.80 per ton of Curbside Collected Single Stream Recyclable Material that is collected within the City and delivered to the MRF. This financial support shall be used exclusively for the City to provide funding to market, promote and educate the community on recycling, reuse and waste diversion in a manner mutually agreed upon by Pratt Recycling and the City. (f) Neither the City nor its contractors shall knowingly deliver Household Hazardous Waste (as defined below) to the MRF. To the extent that the City or its contractors deliver Household Hazardous Waste to the MRF in violation of this provision, the City shall (or cause the City's contractor to) dispose of it at no cost to Pratt Recycling. (g) The City shall provide at no cost to Pratt Recycling two (2) forty (40) cubic yard compactor receiver boxes for use by Pratt Recycling at the MRF. (h) The City shall accept at the landfill that the City operates at the Site (the "Landfill") all MSW that is generated by the MRF. Pratt Recycling will be charged the current lowest disposal rate for the class or type of waste being serviced. This rate will be the lowest of (i) the current City of Denton Rate Ordinance Wholesale Rate, (ii) the lowest rate being provided under a contract to a third party service provider, or (iii) the City's internal rate. If the Landfill is closed, the City shall accept at the City's successor landfill, at the same rate as specified in this Subsection (h), all MSW generated by the MRF, and the City shall provide transportation services to such replacement landfill at no cost to Pratt Recycling. (i) For all of the MSW generated by the MRF, the City shall provide transportation services from the MRF to the working face of the Landfill at no cost to Pratt Recycling, other than the landfill disposal rate pursuant to 1.04(h). (j) The City shall provide water, sanitary sewer and electric service available in the proximity of the MRF with sufficient service capacity to meet the needs of the MRF. The City will supply a water service and meter of less than or equal to two (2) inches. The City will supply a water line of sufficient size and capacity near the MRF to provide afire hydrant tap. The City shall provide 2000 amp electric service. (k) In the event that the City shall discontinue, either directly or indirectly, collecting City Recyclable Materials at the same level of service that exists as of the date of this Agreement, Pratt Recycling may elect to require the City to buy the building containing the MRF (not including the equipment), and if Pratt Recycling so elects to require the City to buy the building, the City shall pay to Pratt Recycling as consideration for the building a sum equal to -3- the "Building Purchase Fee." The Building Purchase Fee shall be equal to (a) the lesser of (y) Pratt Recycling's actual cost of constructing the building or (z) $2,000,000 multiplied by (b) a fraction, the numerator of which will be twenty (20) minus the number of years (or fraction thereofl the MRF was operated by Pratt Recycling, and the denominator of which will be twenty (20). Upon the completion of construction, Pratt Recycling shall notify the City of the actual cost of construction of the building, which actual cost would be used in the above calculation. Section 1.05 Responsibilities of Pratt Recycling. The following obligations of Pratt Recycling shall be subject, as applicable, to the City's full compliance with the City's obligations under this Agreement: (a) Pratt Recycling shall construct or cause to be constmcted a building of approximately 40,000 square feet to be used as the MRF, which MRF shall be titled in the name of Pratt Recycling or an entity designated by Pratt Recycling. In the event that Pratt Recycling elects to contract with a third party to have such third-party construct and own the MRF and lease the MRF to Pratt Recycling or an affiliate of Pratt Recycling, the City agrees to enter into such agreements as may be reasonably necessary to facilitate such a financing arrangement, including allowing Pratt Recycling or such affiliate of Pratt Recycling to assign its interest in the Lease to such third party; provided that Pratt Recycling or such affiliate of Pratt Recycling who is parry to the Lease shall remain obligated to the City pursuant to the Lease. Pratt Recycling or such entity designated by Pratt Recycling may pledge its interest in the MRF and the Property in order to secure financing for the MRF and related business purposes. At the conclusion of the Term, Pratt Recycling shall remove its equipment from the MRF and deliver the empty building in broom-clean condition to the City and the City shall accept the building "as is.". (b) Pratt Recycling shall install processing machinery at the MRF that is sufficient to handle twenty (20) tons per hour of Curbside Collected Single Stream Recycled Material. Processing capacity will initially be 32,000 tons per year with the ability to expand processing capacity to 50,000 or more tons per year during the life of the Agreement. (c) Pratt Recycling shall use its reasonable efforts to maximize the use of economically justifiable renewable energy sources for the operation of the MRF. (d) Pratt Recycling, at its sole cost and expense, shall continuously operate and maintain the MRF beginning on the Commencement Date until the termination of this Agreement, except for such periods of downtime as Pratt Recycling may require or that are caused by a Force Majeure as defined in Article IV of this Agreement. If the downtime exceeds the MRF capacity to store unprocessed Recyclable Material, Pratt Recycling will be responsible for finding a facility to store or process the material, but in any event, Pratt Recycling will not dispose of the unprocessed Recyclable Material in a landfill. (e) Pratt Recycling shall pay the City for the City Recyclable Materials that are delivered to the MRF per the Rebate Schedule (as set forth in Section 1.09 of this Agreement). -4- (f) Except as specifically set forth in this Agreement, Pratt Recycling shall pay for any connection fees, impact fees, utility connection fees, tap fees, utilities, taxes, payrolls and other operational costs needed to operate the MRF. (g) Pratt Recycling shall own the Recyclable Material upon delivery to the MRF and shall be solely responsible for marketing the processed commodities. (h) Pratt Recycling agrees to use its commercially reasonable efforts to recover all Recyclable Material from the material delivered to the MRP so that the amount of Recyclable Material disposed of in the Landfill is minimized or eliminated and complies with applicable Texas laws and regulations regazding the processing and storage of Recyclable Material. (i) Pursuant to Section 1.04(e) and subject to Section 1.05(j), Pratt Recycling agrees to pay the City a recycling education fee of $0.80 per ton of Curbside Collected Single Stream Recyclable Material that is collected within the City and received at the MRF. Such education fee shall be paid quarterly, in arrears, by Pratt Recycling. Such education fees paid by Pratt Recycling shall be expended by the City to fund recycling education. The City shall consult with Pratt Recycling on the manner in which such education fees are expended by the City, but the actual decision shall be the responsibility of the City. (j) Pratt Recycling agrees to build an education and viewing room in the MRF. During the twenty-four (24) month period immediately following the Commencement Date, Pratt Recycling will retain one-half of the recycling education fee described in Sections 1.04(e) and 1.05(1) and apply such amounts to offset the costs of the construction and the initial outfitting of the education and viewing room and for purchasing educational materials and displays to be used in the education and viewing room. Pratt Recycling shall consult with the City on the manner in which such education fees are expended by Pratt Recycling for the educational materials in the education and viewing room, but the actual decision shall be the responsibility of Pratt Recycling. Section 1.06 Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: (a) "Acceptable Recyclable Materials" means Recyclable Materials consisting of plastic (#1 through #7), tin (steel and bi-metal used food cans), aluminum beverage cans, cleaz and colored glass bottles and jars, certain types of plastic film, newsprint, magazines, corrugated cardboard, phone books, chipboard, white and colored paper, mail, office paper, and reasonably free of food residue; but excludes any Recyclable Materials collected with, containing or contaminated by Household Hazardous Waste. The type of materials included in this definition of Acceptable Recyclable Materials may be changed if mutually agreed to by the City and Pratt Recycling. (b) "Clean Commercial Recyclable Material" means Acceptable Recyclable Materials generated by a commercial or industrial generator that does not need to have Unacceptable Materials removed from the commodity in order to meet the commodity's specification as published by the Institute of Scrap Recycling Industries, Ina ("ISRI"). -5- (c) "Ci , Recyclable Materials" means any Acceptable Recyclable Materials which the City's Solid Waste Department, either directly or by contract with athird-party provider, collects within the city limits of the City pursuant to any agreements, contracts or understandings which the City now has, or in the future may have, with any commercial, govemmental and/or residential customers. (d) "Curbside Collected Single Stream Recyclable Materials" means Recyclable Materials generated by residential houses (single family and multi-family) where all Acceptable Recyclable Materials aze mixed together in the collection vehicle. (e) "Environmental Laws" means all applicable laws, directives, rules, ordinances, codes, guidelines, regulations, govemmental, administrative or judicial orders or decrees, or other legal requirements of any kind, whether currently in existence or hereafter promulgated, enacted, adopted or amended, relating to safety, preservation or protection of human health and the environment (including ambient air, surface water, groundwater, land, or subsurface strata), and/or relating to the handling, treatment, transportation or disposal of waste, substances or materials, including, without limitation, any matters related to releases and threatened releases of materials and substances. (f) "Hazazdous Materials" means any pollutant, contaminant, hazazdous or toxic substance, constituent or material, including, without limitation, petroleum products and their derivatives, or other substances, regulated under or pursuant to any Environmental Laws. The term "Hazazdous Materials" also includes any other substance that is, after the date first written above, deemed hazazdous by any judicial or govemmental entity, body or agency having jurisdiction to make that determination. The term Hazardous Materials will be construed to have the broader, more encompassing definition where a conflict exists in the definitions employed by two or more governmental entities having concurrent or overlapping jurisdiction over Hazazdous Materials. (g) "Household Hazazdous Waste" refers to waste that under Texas laws and regulations, is limited to those wastes from households that would be hazardous waste if they were not specifically excluded by the federal regulations, yet contain chemicals that can present safety concerns if improperly used or disposed. Examples of Household Hazazdous Waste include, but are not limited to, gazden chemicals, home cleaners, pool chemicals, automotive oil and anti-freeze, paints and thinners, and some craft supplies. (h) "MRF" means the Materials Recovery Facility to be located on the Site. The facility will be approximately 40,000 squaze feet in size and will have processing machinery able to process a minimum of twenty (20) tons per hour of Curbside Collected Single Stream Recyclable Materials. The processing machinery will include conveyors, trommels, balers, magnets, eddy current sepazators, stairs, platforms and other associated machinery. Processing capacity will initially be 32,000 tons per year with the ability to expand processing capacity to 50,000 or more tons per year during the life of the Agreement. (i) "Recyclable Materials" means any material that has been recovered or diverted from the non-hazazdous Municipal Solid Waste stream for purposes of reuse, recycling, -6- or reclamation, a substantial portion of which is consistently used in the manufacture of products, which may otherwise be produced using raw or virgin materials. (j) "Residue" means any material including any Recyclable Material which: (i) is not capable of being recycled, or (ii) which both the City and Pratt Recycling reasonably agree would not be saleable after being processed at the MRF, or (iii) cannot reasonably be recovered due to the limitations of the sorting process unrelated to variations in the mazket value of recycled commodities; provided, however, Residue shall not include Household Hazazdous Waste. (k) "Municipal Solid Waste" means any gazbage, rubbish, refuse and other solid discazded material resulting from industrial, municipal and commercial operations or from other community and institutional activities. The term does not include: (i) solid or dissolved material in domestic sewage, or solid or dissolved material contained in, or originating from, a wastewater treatment plant, water supply treatment plant, air pollution control facility, irrigation return flows or industrial dischazges subject to regulation by permit issued under applicable law; (ii) soil, dirt, rock, sand and other natural or man-made inert solid materials used to fill land if the object of the fill is to make the land suitable for the construction of surface improvements. (1) "Term" means the term of this Agreement, which shall be twenty (20) years from the Commencement Date, unless sooner terminated as provided herein, and any Renewal Term agreed to pursuant to Article V of this Agreement. (m) "Ton" means 2,000 pounds. (n) "Total Tons Delivered to the MRF" means all tons of Recyclable Materials delivered to the MRF. (o) "Unacceptable Material" shall mean any Municipal Solid Waste that is not able to be recycled. This includes but is not limited to (i) Household Hazardous Waste; (ii) material excluded from the definition of Municipal Solid Waste by Chapters 361 and 363 of the Texas Health and Safety Code and other materials which require special handling or treatment including, but not limited to, lead, acid batteries, tires, liquid waste, paint, pesticides, herbicides and large or bulky items such as furniture and appliances; (iii) yazd waste (such as, notably, grass clippings, leaves, twigs and branches), food waste, Recyclable Materials containing food waste, plastic items that are not rigid containers, disposable paper items (such as tissues and diapers), paper meat trays, pots and pans, auto glass, cookwaze, plastic egg cartons, cazbon paper and non-paper envelopes (e.g., tyvek). (p) "Unprocessed Commercial Recvclable Material" means Acceptable Recyclable Materials generated by a commercial or industrial generator that does need to have Unacceptable Materials removed from the commodity in order to meet the commodity's ISRI specification. -7- Section 1.07 Handling of Unacceptable Material and Residue. If any truckload, or portion of a load, of City Recyclable Materials delivered by the City or the City's contractor to the MRF is reasonably estimated by Pratt Recycling after visual inspection to contain a combination of Unacceptable Material and Residue in excess of fifteen percent (15%) of the load by weight, Pratt Recycling may, at its discretion, deem the entire load, or a portion of the load, to be unacceptable and choose to reject and not process the entire load, or a portion of the load. In such circumstances, Pratt Recycling will dispose of the rejected load or portion of the load. The City will waive the disposal fee on that load or portion of the load. Further, if any person or entity habitually delivers Recyclable Materials containing an excess of fifteen percent (15%) of Unacceptable Material and Residue, Pratt Recycling may, at its reasonable discretion, disallow such person or entity from delivering Recyclable Materials to the MRF for up to two (2) years, at which point such person or entity shall be given an opportunity to comply with the standazds set forth above. Section 1.08 Non-City Recyclable Material. Pratt Recycling may accept Recyclable Material that is not collected within the City. If Pratt Recycling accepts Curbside Collected Single Stream Recyclable Material from outside of the City, Pratt Recycling shall pay the City the fee set forth in Section 1.09(c) of this Agreement. Section 1.09 Rebate Schedule. All Recyclable Material delivered to the MRF will be weighed upon arrival. Pratt Recycling may accept Recyclable Material that is not collected within the City. If Pratt Recycling accepts Curbside Collected Single Stream Recyclable material from outside of the City, Pratt Recycling shall pay the City the fee set forth in Section 1.09(c) of this Agreement. Pratt Recycling shall pay to the City a rebate based on the type and quantity of tons received for processing at the MRF as follows: (a) For all tons of Curbside Collected Single Stream Recyclable Materials delivered to the MRF by the City or the City's contractor, which the City or the City's contractor collected within the city limits of the City, a per ton amount will be paid based on the Total Tons Delivered to the MRF from all sources (which definition includes all Recyclable Material from any source accepted by Pratt Recycling at the MRF) during that calendar month as calculated in the chart below: Number of Total Tons Time Period Per Ton Rebate for all Delivered to the MRF Curbside Collected Single Stream Recyclable Materials delivered to the MRF by the City of Denton Less than or equal to 1000 In any one calendaz month $5.00 per ton tons More than 1000 tons and less In any one calendaz month $10.00 per ton than 1500 tons More than 1500 tons and less In any one calendar month $12.50 per ton -8- than 2000 tons More than 2000 tons In any one calendar month $15.00 per ton (b) For all Clean Commercial Recyclable Materials delivered to the MRF by the City or the City's contractor within the City, and for all Unprocessed Commercial Recycled Materials delivered to the MRF by the City or the City's contractor within the City, the rebates listed in the chart below will be paid: Commodity Per-Ton Rebate for Clean Commercial Recyclable Materials Per-Ton Rebate for Unprocessed Commercial Recyclable Materials OCC 75% of the high side southwest of the OBM ellow sheet 60% of the high side southwest of the OBM ellow sheet Mixed Paper 75% of the high side southwest of the OBM ellow sheet 60% of the high side southwest of the OBM ellow sheet #6 ONP 75% of the high side southwest of the OBM ellow sheet 60% of the high side southwest of the OBM yellow sheet #8 ONP 75% of the high side southwest of the OBM ellow sheet 60% of the high side southwest of the OBM ellow sheet Sorted Office Paper 75% of the high side southwest of the OBM ellow sheet 60% of the high side southwest of the OBM ellow sheet Steel cans 75% of sell rice 60% of sell rice Aluminum cans 75% of sell price 60% of sell price Plastics 75% of sell rice 60% of sell rice Color sorted lass 75% of sell rice 60% of sell rice 3 Mix lass 75% of sell rice 60% of sell price The grades will be determined by the definitions and specifications published by the ISRI, which aze attached hereto as Exhibit B. (c) For any Curbside Collected Single Stream Recyclable Material that Pratt Recycling accepts at the MRF that was collected outside of the City of Denton, Pratt Recycling shall pay the City a fee of $5.00 per ton. (d) For purposes of clarification, the only rebates for Recyclable Materials to be paid to the City pursuant to the Agreement are those listed in Subsections (a), (b), and (c) of this Section 1.09. Also see the attached Exhibit C for two examples of the calculation of the amount that would be due the City from Pratt Recycling under this Agreement. (e) Prior to the commencement of the first (1st) day of the sixth (6th) year of the Primary Term, and prior to the commencement of each additional five (5) year period thereafter throughout the entire Tenn, including any Renewal Terms, the parties shall have the option of causing the parties to renegotiate the rebate paid to the City pursuant to Section 1.09(a). The base rebate rates set forth in Section 1.09(a) were derived by analyzing the value and the -9- cost of recovering the following recyclable items: Plastics #1 and #2, Steel, Aluminum, ONP, OCC and glass. Any modification of such base rebates shall be based on adjustments to the value and cost of recovering the above-listed items and shall be mutually agreed to by Pratt Recycling and the City. In the event that Pratt Recycling and the City cannot agree on the amount of rebates to be paid, either of the parties may invoke the dispute resolution procedures set forth in Section 6.01 of this Agreement. Section 1.10 Title to Recyclable Materials. All City Recyclable Materials shall become Pratt Recycling's property, with title thereto transferred to the name of Pratt Recycling, upon being unloaded, inspected for verification and accepted by Pratt Recycling, at the MRF. Title to any Household Hazazdous Waste or Hazardous Material delivered to Pratt Recycling by the City or the City's contractors, even if inadvertently accepted by Pratt Recycling, shall remain with the City or the City's contractor and shall not pass to Pratt Recycling, and the City shall be responsible for disposing such material or having such material disposed by the City's contractor. Hazazdous Material or Household Hazardous Waste delivered to Pratt Recycling by any party other than the City or the City's contractor does not become the property of the City, and shall remain the responsibility of Pratt Recycling to reject or to ensure proper disposal. Section 1.11 Audit Ri ts. The City and Pratt Recycling, shall each have the right to examine and audit the other Party's financial records that are directly pertinent to the engagement entered into by the Parties, upon reasonable advance notice, but in no event less than seventy-two (72) hours advance written notice. The examination and audit shall be made during normal business hours, Monday through Friday. The examination and audit shall consist of the examined Party's non-confidential transaction records, weight tickets, and other documents that are reasonably necessary to determine compliance with the terms of this Agreement. Section 1.12 Timing of Payments. All payments due to the City from Pratt Recycling for Pratt Recycling's performance of its obligations under this Agreement shall be made within thirty (30) days of the end of the calendaz month in which the fees or rebates were incurred. Section 1.13 Scales. Pratt Recycling shall have the right and responsibility to obtain and maintain State certification of the scales at the MRF. Once every six (6) months, the City may request access to all records of Pratt Recycling relating to the scales at the MRF, including, but not limited to, records related to State certification, inspections and any other records pertaining to the accuracy of such scales. ARTICLE II. INDEPENDENT CONTRACTOR Except for the City's responsibilities hereunder, the work and labor provided for herein shall be performed and furnished by Pratt Recycling as an independent contractor and under the sole supervision, management, direction and control of Pratt Recycling in accordance with the terms and conditions of this Agreement. Pratt Recycling will have full control over employees it may see fit to employ to assist in performance of this Agreement including, but not limited to, the hiring, firing and supervision of any such employees of Pratt Recycling. In no event shall the City's or any third party's employees be considered employees of Pratt Recycling and no situation shall be considered as having the effect or consequence of creating a legal relationship between Pratt Recycling and the employees of any entity other than Pratt Recycling. -10- ARTICLE III. COMPLIANCE WITH LAWS AND CERTAIN OTHER COVENANTS AND OBLIGATIONS OF THE PARTIES Section 3.01 In the performance of their respective duties and obligations hereunder, Pratt Recycling and the City agree to comply in all material respects with all applicable federal, state and local laws and ordinances and all applicable lawful orders, rules and regulations of any constituted authority, including but not limited to, social security and income tax withholding laws, employment compensation laws, Environmental Laws, safety and health laws, and the Parties undertake to furnish on demand the appropriate attestation to that effect. All duties and obligations required of each Party pursuant to the terms of this Agreement will be completed in a good, workmanlike and lawful manner. Section 3.02 Pratt Recycling shall maintain in full force and effect throughout the Term of this Agreement any and all permits, licenses, authorizations, approvals, plan requirements and permissions which may now or in the future be required to operate the MRF, and shall fully comply with all provisions and requirements of the same. The City shall obtain and maintain in full force and effect throughout the term of this Agreement all permits, licenses, authorizations, approvals, plan requirements and permissions which may now or in the future be required for the delivery of Recyclable Materials to MRF. Section 3.03 Insurance. During the performance of the services under this Agreement, Pratt Recycling shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency, which companies have a rating with A.M. Best Rate Carvers of at least an "A--" or higher: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence, and not less than $2,000,000 in the aggregate; and with property damage limits of not less than $500,000 for each occurrence, and not less than $1,000,000 in the aggregate. B. Automobile Liability Insurance with bodily injury limits of not less than $1,000,000 for each person and not less than $2,000,000 for each accident; and with property damage limits of not less than $500,000 for each accident. C. Worker's Compensation Insurance in accordance with statutory requirements, and Employer's Liability Insurance with limits of not less than $1,000,000 for each accident. D. All limits coverage or "umbrella" insurance coverage with policy limits of not less than $ I ,000,000. Section 3.04 Pratt Recycling will permit, during Pratt Recycling's normal business hours, the City's recyclable collection driver(s), representatives and agents (the "City Recyclable Collection Driver(s)") to enter the unloading area. When in the unloading area, the City Recyclable Collection Driver(s) will wear proper personal protective equipment safety gasses and a safety vest-and abide by any other safety rules and regulations reasonably imposed by Pratt Recycling. (See addendum for Pratt's safety rules). The City Recyclable Collection Driver(s) will be strictly forbidden from entering the plant's processing area without the supervision of a Pratt Recycling representative and without the aforementioned personal -11- protective equipment, and shall abide by any other safety rules and regulations reasonably imposed by Pratt Recycling. ARTICLE IV. FORCE MAJEURE Except for the obligations to pay any amount due and payable under the terms hereof, neither Party hereto shall be liable for its failure to perform hereunder, in whole or in part, due to contingencies beyond its reasonable control, including, but not limited to: strikes; riots; war; fire; acts of God; injunction; or compliance with any law, regulation or order of the United States of America or any other governmental body or any instrumentality thereof, whether now existing or hereafter created. Any Party claiming excuse from performance pursuant to this Article shall promptly notify the other Party in writing of such claim and the basis thereof and shall use all reasonable efforts to minimize the effect or duration of such force majeure condition. ARTICLE V. TERM AND TERMINATION This Agreement shall be in force from and after the Commencement Date for a period of twenty (20) years. This Agreement may be extended for two (2) additional terms of ten (10) years each. The decision to extend the contract must be a mutual decision. Negotiations to extend the contract are to begin approximately one (1) year before the end of the Term. Considering the possibilities that may occur over the course of the Term of this Agreement, both Parties may terminate the Agreement at any time after obtaining the mutual written consent of both Parties hereto. Either Party may terminate this Agreement for any material breach or material default of any covenant, obligation, undertaking or representation of the other Party, hereafter set forth in this Agreement, upon sixty (60) day's written notice, from the date the notice is received by the alleged defaulting Party, if such material breach or material default remains uncured at the end of the sixty (60) day period. For example, and without limitation, a material breach or material default is defined as a breach or default that deals with failure to pay the sum of $10,000 or more to the City by Pratt Recycling within ten (10) days of its due date herein and the City would be entitled to terminate this Agreement if Pratt Recycling did not cure such default within sixty days of receiving written notice from the City that such amount was past due; a material breach or material default is also defined as Pratt Recycling willfully or knowingly failing to continue business operations as provided herein for a period of thirty (30) days or more, without just cause. Either Party may also terminate this Agreement if the other Party files a bankruptcy proceeding that is not dismissed within sixty (60) days after the date of filing, whether such filing is voluntary or involuntary. ARTICLE VI. MISCELLANEOUS Section 6.01 Resolution. (a) In the event that a dispute arises under this Agreement, the Parties agree to use negotiation as the first method of dispute resolution. The negotiation shall involve an officer of Pratt Recycling as well as the on-site Manager of the MRF, the Director of Solid Waste, and the Manager of Recycling Services. If the dispute cannot be resolved within twenty (20) days after one Party provides notice to the other Party of the need to negotiate the dispute, then the Parties shall agree to Mediation. -12- (b) In the event that the dispute is not resolved within twenty (20) days after one Party provides notice to the other Party of the need to negotiate the dispute, then the Parties shall immediately agree to submit their dispute to mediation under the American Arbitration Association (the "AAA"). Each Party shall enter into mediation in good faith and attempt to resolve the dispute. Each Party agrees to pay for its own mediation costs. (c) If the matter cannot be resolved within sixty (60) days of the commencement of mediation, then if the party or parties choose, the matter may proceed to either the state or federal courts pursuant to Section 6.13 of this Agreement. Section 6.02 No Waiver. Failure of either Party hereto to exercise any right hereunder shall not be deemed a waiver of such Party's right and shall not affect the right of such Party to exercise at some future time said right or rights or any other right it may have hereunder. Section 6.03 Remedies. None of the remedies provided for under this Agreement need be exhausted or exercised as a prerequisite to resort to further relief to which the Party may then be entitled in the event of potential irreparable harm. Section 6.04 City Ordinances. The City shall notify Pratt Recycling thirty (30) days in advance of any proposed amendment or modification to the City's ordinance(s) that shall directly affect the terms and conditions of this Agreement, and shall afford Pratt Recycling the opportunity to comment on such proposed amendment or modification prior to its enactment. In the event that the amendment or modification is enacted in a manner that Pratt Recycling considers to affect adversely the terms and conditions of this Agreement, said Agreement shall, notwithstanding its remaining term, become subject to good faith renegotiation at Pratt Recycling's request. Section 6.05 Authority. The City hereby represents by its execution of this Agreement that the City has in all respects complied with City Ordinances in the making and execution of said Agreement, and further represents by its execution of the Agreement that it has this lawful authority and financial, administrative, aswell as technical capability, to furnish all services to and receive all services from Pratt Recycling. Section 6.06 City Indemnity. The City, to the extent permitted by applicable law, if any, shall indemnify and save Pratt Recycling from and against any and all claims, demands, actions, and judgments lodged, asserted or recovered by others, for loss, damages, or injury to person or property, including death, arising out of or in connection with any acts of the City, its agents, or employees in the construction, use, and maintenance of the MRF while this Agreement is in effect, except those resulting from the sole and proven negligence of Pratt Recycling or its agents or employees. Section 6.07 Pratt Recycling Indemnity. Pratt Recycling shall be responsible for and shall indemnify and save the City from and against any and all claims, demands, actions and judgments lodged, asserted, or recovered by others, for loss, damage, or injury to person or property, including death, arising out of or in connection with any installation, repairs, and maintenance undertaken by Pratt Recycling or its agents or employees of the MRF, while the -13- Agreement is in effect, except those resulting from the sole, proven negligence of the City or its agents or employees. Section 6.08 Assi ng ment. No assignment by Pratt Recycling of any of its rights under this Agreement shall be binding on the City unless the City shall have consented to such assignment with the same formality as employed in the execution of this Agreement, which consent shall not be unreasonably withheld; provided that the City's refusal to give the City's consent to a potential assignee who is not as creditworthy as Pratt Recycling shall be deemed to be reasonable. No assignment by the City of any of its rights under this Agreement shall be binding on Pratt Recycling unless Pratt Recycling shall have consented to such assignment with the same formality as employed in the execution of this Agreement, which consent shall not be . unreasonably withheld. Section 6.09 Binding Effect. Subject to such consent as provided for in Section 6.08 of this Agreement, the benefits and burdens of this Agreement shall inure to and be binding upon the respective legal representatives, successors and assigns of the respective Parties hereto. Section 6.10 Entire Agreement. This Agreement embodies the complete agreement and understanding by and among the Parties and supersedes and preempts any prior understandings, agreements, or representation by, between, or among the Parties, written or oral, which may have been related to the subject matter hereof in any way. No statement or representation of any agent or representative of the City or Pratt Recycling, not incorporated herein, shall be a part of this Agreement or be deemed an inducement to the execution hereof. Section 6.11 Counter~azts. This Agreement may be executed in counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument. Section 6.12 Notices. All notices and other communications required or permitted to be given by any provision of this Agreement shall be in writing and mailed (certified or registered mail, postage prepaid, return receipt requested) or sent by hand or overnight courier, and such notices shall also be sent by facsimile transmission (with acknowledgment received), chazges prepaid and addressed to the intended recipient as follows, or to such other address or number as may be specified from time to time by like notice to the Parties. A courtesy copy of such notice or other communication shall also be sent electronically via email to the email addresses provided in the contact information below; provided, however, that such email copies will not constitute Notice as defined in this Section 6.12: (a) If to the City: City of Denton 215 East McKinney Street Denton, TX 76201 Attention: City Manager Facsimile: 940-349-8596 -14- With a copy to: City of Denton 1527 South Mayhill Road Denton, TX 76208 Attention: Director of Solid Waste Services Facsimile: 940-349-7303 Email: Vance.Kemler@cityofdenton.com (UU~ If to Pratt Recycling: Pratt Recycling ~To be provided] Denton, TX 76208 Attention: Manager Facsimile: [To be provided Email: Plant Manager) With a copy to: Pratt Recycling 1169 Oakleigh Street East Point, GA 30234 Attention: VP of Recycling Facsimile: 404-768-8057 Email: Lhenao@prattindustries.com and Pratt Industries (U.S.A.), Inc. 1800-A Sazasota Parkway Conyers, GA 30013 Attention: General Counsel Facsimi 1 e: 770-388-5260 Email: jsevy@prattindustries.com Any Party may from time to time specify a different address for notices by like notice to the other Party. All notices and other communications given in accordance with the provisions of this Agreement shall be effective upon receipt of the same. Section 6.13 Applicable Law. This Agreement shall be construed solely in accordance with the laws of the State of Texas. Exclusive venue for any claim or cause of action under this -15- Agreement shall be, as the case may be, either in the District Courts of Denton County, Texas, or the federal district courts of the Northern District of Texas, Dallas Division. Section 6.14 Captions. The headings and captions in this Agreement are for convenience only and shall not be considered a part hereof or affect the construction or interpretation of any provisions of this Agreement. Section 6.15 Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. [Signatures on Neat Page] -16- IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written. VISY RECYCLING, INC. A Delaware Corporation l 1' , ! 1 ' ' ~```~~~~uunnnm,~ l s TARY~.E` ~Q• NO By: l_.- , ~I ~"O 9 =~~ ~®®® ,k= _* ° LUIS HENAO, Executive Vice President, • PUBLIC,~:~~ Rec clin Division Y g i ~~acemDec~~''Q,~~~ O °~` ~~~~ ~~ Date: °~ ZO ~ ~HCO., G~ THE CITY OF DENTON, TEXAS .A Texas Municipal Corporation By: ~--~- G ORGE C. CAMP ELL, City Manager ATTEST JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M . SNYDER, CITY ATTORNEY ~ ~Y By: EXHIBIT A DESCRIPTION OF THE SIX (6) ACRE PARCEL OF PROPERTY SUBJECT TO THIS LEASE AGREEMENT SEE ATTACHED] 18- Proposed MRF Site September 17, 2007 EXHIBIT A f rTi'°.~i'Y -'C~! 4.1r s fR~" j'4 ar.a. .y f'?."gyp l( ~I.v ~, 1 .. ~. ,. '~e, i~ ~ ~ .cam h - f" f c ~,v„, r~ r ~> ~'^r I ~,`~`?`„ ~,, _ +_ 4c - ~ Fi fop,. >~y}i).. Pi Y fY f I w Y A.. ~ ~aS . ' ~ x „ ~ lJ~2 A ~ t.IF~• 11 LL 4 r ~ } r J'Y S~ ~ wID .y ~i2o~/ ~~~ ~',sza' t,~rr~ ~' yy~~i~~ , =t f `s~-~'=~o: > s +~_.y.._ i r ~ i~! ~ ~ .y t~`« i n ~ ~ ~ ~.. of r. +~ I t r. +~ L If F~ Zl ~ y 5 ~~ i}' !y r A . , - s !~ ' '~JrE ~~ 500 ~y I ~. n >+t~ ., .f ~ (( ,~y ~, ~ i } g ~y ~. e; ~ R~~ya{~y- i.~~ 500: ~X ( ~}S` (7 t ~ ~ ^'f ~'K.. re ~D • {~~ ~ V ~ ~ ~~. .~ . i. F, , ~ ~! .: t'11 ~ ,, ((1._~ ~ r ~ ~ ~ t !r R~ fE. %RIE k iiUW/ F E tE ~i tja ~ .ems ~'~\.~~ ~ ~ fi P `~~i l~.y`~ ~.' ~..r-9 F'~. ;! t„F1 19F .lPI l1, t . , t f .: .,~ . _ } ! x ~ ~,, gyp ~_ ~j j °n ~,. !~ 4~ I Z-~J+t- ~-Yf- ... i . tl F :Itl fi ~~E !t~ >r+r`e`.~ 4. '"~ ~, ~,~ r .~ n ~ V ~/l ~ t' ~. t t i;x ~. (,1 ',~,`~ ~. ~•~s~;~.>~- ---yam ¢iy. / o ~ r'-^-~, ~g art ~~ ~`. r:' ~ ~ yi~ 5~~----{ ~. of t ~ 1 , _ _ _ f ~ It~ ~ $ ~;.,~ t.3 ,- tw ~t Coleman R. Assoc. Land Surveying Y.p. Hox ti8t; Unuon. Tcsas 7(i`l0? 1'houc (J40).i6.5-8`Ll:i I:~c 19=10)3(iSl1800 6.0 Acre Tract FIELD NOTES to all of that certain tract of land situated in the G. Walker Survey Abstract Number 1330, City of Denton, Denton County Texas and being a part of the called 29.612 acre tract described N the deed from Harold C. Coe to City of Denton, Texas recorded under Clerks F;le Number 95-R0072063 of the Real Property Records of Denton County, Texas and a pan of the called 6.173 acre tract described in the deed from Clifford Harper and Vinson Harper to City of Denton recorded under Clerk's File Number 99- 80088982 of the said Real Property Records; the subject tract being more particularly described as follows (Bearings basis is Texas Coordinate System of 1983, North Central Zone-4202): BEGINNING in the South line of the tract being described herein at a 1/2 inch iron rod found at a cross tie fence comer post at the Northerly Northwest comer oC Lot A, Solid Waste I as shown by the plat thereof recorded in Cabinet W, Page 943 of the Plat Records o(Denton County, Texaz and a reentrant corner of the said 29.612 acre tract and also being the Northeast comer of a called 3.6469 acre tract described in the deed from Ronald Brown et al to Ci[y of Denton, Texas recorded under Clerk's File Number 2004-106837 of the said Real Property Records; THENCE Noah 8S Degrees 28 Minutes 48 Seconds West with the North line of the said 3.6469 acre tract and the South line of the 29.612 acre tract passing a salient comer thereof and the Southeast comer of the said 6.173 acre tract and continuing along the same course, in all, a total distance of 364.45 feet to a 112 inch iron rod with a yellow plastic cap stamped "Coleman RPLS 4001" set (herein after referred to as I/2"IRS) in a chain link fence from which a cross tie fence comer post at [he Southwest comer thereof on the East side of Mayhill Road bears North 88 Degrees 28 Minutes 48 Seconds West a distance of 348.1 fee[; THENCE North 04 Degrees Ol Minutes 34 Seconds East along the said chain Zink fence across the 6.173 acre tract a distance of 101.94 feet to a ]/2"IRS a[ a chain link fence comer post for a reentrant comer of the herein described tract; THENCE North 86 Degrees 04 Minutes 39 Seconds West along the chain link fence across the 6:173 acre tract passing at a distance of 172.67 feet a chain link fence comer post and continuing along the same course, in all, a total distance of ] 80.36 feet to a 1/2"IRS for the Southwest corner of the herein described tract and being 20 feet Southeast of the East edge of an asphalt road; THENCE North 21 Degrees 15 Minutes l5 Seconds East across the 6.173 acre tract, 20 feet Southeast of the said asphalt road, a distance of 264.19 feet to a I/2"IRS; THENCE North 06 Degrees 36 Minutes 24 Seconds East continuing across the 6.173 acre tract passing the North line thereof and the South line of the said 29.612 acre tract and continuing 20 feet Southeast of the said asphalt road, in all, a total distance of 101.76 feet to a 1/2"IRS; THENCE North 51 Degrees 48 Minutes 37 Seconds East continuing across the 29.612 acre tract, 20 feet Southeast oC another asphalt road, a distance of 64.16_ feet to a 1/2"IRS for the Northwest comer of the herein described tract THENCE South 83 Degrees 49 Minutes 47 Seconds East continuing across the 29.612 acre tract, 10 feet South of a dirt haul road, a distance of 483.85 feet to a 1/2"IRS for the Nonheast comer of the herein described tract; THENCE South Ol Degrees 28 Minutes 23 Seconds West continuing across the 29.612 acre tract a distance of 461.23 feet to a I /2"IRS in the North line of the said Lot A; THENCE North 88 Degrees 28 Minutes 01 Seconds West with the North line of Lot A, a distance of 90.03 feet to the PLACE OF BEGA'NING.and enclosing 6.0 acres of land, more or less. EXHIBIT B ISRI DEFINITIONS AND SPECIFICATIONS [SEE ATTACHED] -19- EXHIBIT B Scrap Specifications Circular Guidelines for Nonferrous Scrap ~ Ferrous Scrap ®Glass Cutlet Paper Stock a Plastic Scrap ®Electronics Scrap ~ Tire Scrap VoiceVnke®e IL~n~I Institute of Scrap Recycling Industries, Inc. Rules Governing the Procedures for the Addition, Amendment, or Withdrawal of Specifications ................3 Nonferrous Scrap: NF-2007 ............... ...............4 Red Metals ......................... ...............4 Aluminum ......................... ...............6 Zinc .............................. ...............9 Magnesium ......................... ..............10 Lead ........................:..... ..............10 Nickel/Stainless/Hi Temp .............. ..............11 Mixed Metals ....................... ..............12 Other ............................. ..............13 Ferrous Scrap: FS-2007 ......................... .......15 Electric Furnace Casting and Foundry Grades ....... .......16 Specially Processed Grades ..................... .......17 Castlron Grades ........................... .......17, Special Boring Grades ....................... .......18 Steel From Scrap Tires ...................... .......18 Railroad Ferrous Scrap ...................... .......19 Glass Cutlet: GC-2007 ........................... .......21 Paper Stock: PS-2007 Domestic Transactions ...... .......23 Glossary of Paper Stock Terms .................. .......29 Paper Stack: PS-2007 Export Transactions ........ .......30 Plastic Scrap: P-2007 ........................... .......36 Guidelines for Electronics Scrap: ES-2007 .......... ......43 Guidelines for Tire Scrap TS-2007 ................. ......50 Guidelines for Metals Transactions ................. ...... 52 ISRI Arbftration Service ......................... ...... 56 Scrap Specifications Circular 2007 Guidelines for Nonferrous Scrap Ferrous Scrap Glass Cutlet Paper Stock Plastic Scrap Electronics Scrap Tire Scrap VoiceVuiae®e IL~n~I Institute of Scrap Recycling Industries, Inc. Suite 600,1615 L Street NW Washington, DC 20036-5610 Tel. 202/662-8500 Fax 202/626-0900 www.isri.org PREFACE The standard specifications included in this Circular are intended to assist members in the buying and selling of their materials and products. These specifications are derived from many sectors of the metals, paper stock, plastics, glass, and electronics industries and are constructed to rep- resent the quality or composition of the materials bought and sold in the industry. The specifications are internationally accepted and are used throughout the world to trade the various commodities. Parties to a transaction may specify particular variations or additions to these specifications as are suited for their specific transactions and for their individual convenience. Any deviation from the standard specifications, how- ever, should be mutually agreed to and so stipulated in writing by the parties to the transactions. ISRI maintains an Arbitration Service as a means of enabling members to settle differences between themselves or between one of them and a non- member. In addition, the "Guidelines for Metals Transactions" contain supplementary information that will aid members in completing their business transactions. It is recommended that these Guidelines be reviewed and that members use them in conjunction with the actual specifications in the conduct of their business. Changes in the 2007 edition: This edition contains several changes to guidelines. Nonferrous Specifications Specifications for aluminum extrusions have been added The new guidelines are: Tata (page 8) Toto (page S) Tutu (page 8) Paper Stock Specifications Guidelines for Paper Stock Domestic Transactions contain new language. Grades 1 and 2 have updated language and grade 3 has been put into use. ISRI's Scrap Specifications Circular is published in print once per year. To insure you have the most up-to-date version, visit www.isri.orq/specs. Issued by: ® IYR~ Institute of Scrap Recycling Industries, Inc. idt~ oI fM RxKlvg IMU[Vy Copyright ©2007 Institute of Scrap Recycling Industries, Inc. This document may not be reprinted in whole or in part without the prior written permission of the Institute of Scrap Recycling Industries, Inc. CIRCULAR 2007 BECAME EFFECTIVE May 3, 2007, AND PREVAILS UNTIL SUPERSEDED. t~ _.~ _'~. a -~' „• . ~;. .__ 7 :... INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC., -. Rules Governing the Procedures for the Addition, Amendment, or Withdrawal of Specifications 1.0 Initiation of Request. Any person may file a request to add, amend or withdraw a specification by submitting such request in writing to the ISRI President. 2.0 The President shall refer such request to the Chairman of ISRI's Specifications Committee (the "Committee"), with copies to: A. ISRI's Officers; B. The chairman of any ISRI Division and/or Committee that might be affected by the specification. 3.0 Notice. Following its receipt, notice of the request shall be inserted in the ISRI Focus and a daily national trade publi- cation such as American Metal Markel. Such notice shall state: A. The date, time and place at which the request will be considered by the Committee; B. That the proceeding at which the request will be con- sidered shall be open to the public; C. That interested parties may participate in the proceed- ing by personal appearance or by submitting written comments; D. A summary of the specification and the matter to be considered at the hearing. 4.0 Committee Action. Following presentation by all interested parties, the Committee shall review the request and: A. Act upon it immediately, as set forth in Section 4.1; or B. Refer it to a subcommittee for review and recommen- dation for action by the full Committee at its next meeting. 4.1 The Committee shall summarize the positions advocated by the various parties interested in the request and recom- mend to ISRI's Board of Directors what action should be taken. 5.0 Board of Directors Action. The Board of Directors, at its quarterly meeting at which the report and recommenda- tion of the Committee has been made, shall adopt, amend, or reject the recommendation or table it pending further review and recommendation by the Committee. 5.1 Notice of the action taken by the Board shall be given to all interested parties who actively participated in the Commit- tee proceeding and any other persons who have requested in writing notice of the Board's action. Notice of said action also shall be inserted in the ISRI Focus following the Board meeting at which said action was taken. 6.0 Appeal. On or before thirty days after the date of the notice required in Section 5.1, any party may appeal the decision of the Board by written notice to the President. Said appeal shall state the reasons thereof and the requested action to be taken. Notice of said appeal shall be given in accordance with Section 3.0. 6.1 The appeal shall be heard by the Board at its next quarterly meeting following receipt thereof. 6.2 The appellant and all interested parties shall be given at least twenty days notice of the date, time and place of the hearing, and like notice shall be inserted in the ISRI Focus at least twenty days prior to the hearing. 63 At the hearing, the appellant and any other interested par- ty may appear either in person or by written presentation and state their reasons for the appeal. 6.4 The Board, following said hearing, shall review and act upon the appeal request. Notice of the Board's action shall be given in accordance with Section 5.1. 7.0 Records. ISRI shall maintain for not less than five years fol- lowing the date of termination of the proceedings, records of the original request, summaries of the deliberations and recommendations of the Committee, action of the Board, summaries of the appeal and final decision, if any, of the Board, together with the positions of interested parties, copies of notices sent to interested parties and inserted in the ISRI Focus and national trade publications, written statements, and the reasons for recommendation and final action by the Committee and the Board. 7.1 Said records shall be available for review by the public upon reasonable notice. SCRAP SPECIFICATIONSCIRCULAR YOO7 ~v ~* - = M Guidelines for Nonferrous Scrap: NF-2007 Note: When the individual scrap grades in this Circular, denoted by the various code words, are used, an agreement between par- ties is also bound by the terms of "Apple" as it appears below, unless the terms and conditions of a specific contract provide other- wise, in which case the specific contractual provisions shall govern. CODE ITEM Apple Nonferrous Terms a. Delivery of more or less of the specified quantity up to 3 percentis permissible. b. A ton shall be understood to be 2,000 pounds, unless otherwise specified. c. If any portion of the goods covered by a contract are unshipped or undelivered within the time specified in a contract, then that portion is subject to cancellation by the buyer and/or the buyer has the right to hold the seller responsible for substantiated damages. If, because of embargo and/or other conditions of force majeure, a delivery or shipment cannot be made by the time specified, the contract shall remain valid and shall be completed promptly upon lifting of the embargo and/or conditions of force majeure and the terms of said contract shall not be changed. d. If for any portion of a contract the buyer fails in a timely manner to open a Letter of Credit and/or fails to provide proper conveyance and/or shipping instructions as specified in the contract, then that portion is subject to cancellation by the seller and/or the seller has the right to hold the buyer responsible for substantiated damages. If, because of embargo and/or other conditions of force majeure, a delivery or shipment cannot be made by the time specified, the contract shall remain valid and shall be Completed promptly upon lifting of the embargo and/or conditions of force majeure and the terms of said contract shall not be changed. e. If a significant weight or quality difference is appar- ent,the seller should be notified promptly and, if requested, another weight or quality determination should be taken. Seller and/or buyer should be given the opportunity to appoint an independent surveyor or a representative to verify weights and/or quality. For purposes of this section, the meaning of the word "significant" shall be determined by agree- ment between buyer and seller, depending on the commodities and their values. f. If it is mutually determined that goods delivered do not conform to the description specified in the con- tract,then the shipment is subject to rejection or downgrade. Disposition of, replacement of, and/or financial adjustment for rejected material shall be subjected to mutual agreement between buyer and seller. Sell- er is responsible for freight costs. Buyer is expected, however, to exert every effort to limit rejections only to that portion of the shipment which is unsortable and to return the rejected por- tion promptly upon request, if government regula- tionspermit. CODE ITEM Barley No. i COPPER WIRE Shall consist of No.1 bare, uncoated, unalloyed copper wire, not smaller than No. t6 B & S wire gauge. Green copper wire and hydraulically compacted material to be subject to agreement between buyer and seller. Berry No.1 COPPER WIRE Shall consist of clean, untinned, uncoated, unalloyed copper wire and cable, not smaller than No.16 B S S wire gauge, free of burnt wire which is brittle. Hydrauli- cally briquetted copper subject to agreement. Birch No. 2 COPPER WIRE Shall consist of miscellaneous, unalloyed copper wire having a nominal 96% copper content (minimum 94%) as determined by electrolytic assay. Should be free of the following: Excessively leaded, tinned, sol- dered copper wire; brass and bronze wire; excessive oil content, iron, and non-metallics; copper wire from burning, containing insulation; hair wire; burnt wire which is brittle; and should be reasonably free of ash. Hydraulically briquetted copper subject to agreement. Candy No.1 HEAVY COPPER Shall consist of clean, unalloyed, uncoated copper clip- pings, pgnchings, bus bars, commutator segments, antl wire not less than 1/16 of an inch thick, tree of burnt wire which is brittle; but may include clean copper tubing. Hydraulically briquetted copper subject to agreement. Cllff No. 2 COPPER Shall consist of miscellaneous, unalloyed copper scrap having a nominal 96% copper content (minimum 94%) as determined by electrolytic assay. Should be free of the following: Excessively leaded, tinned, soldered cop- per scrap; brasses and bronzes; excessive oil content, iron and non-metallics; copper tubing with other than copper connections or with sediment; copper wire from burning, containing insulation; hair wire; burnt wire which is brittle; and should be reasonably free of ash. Hydraulically briquetted copper subject to agreement. Clove No. l COPPER WIRE NODULES Shall consist of No.1 bare, uncoated, unalloyed copper wire scrap nodules, chopped or shredded, free of tin, lead, zinc, aluminum, iron, other metallic impurities, insulation, and other foreign contamination. Minimum copper 99%. Gauge smaller than No. 16 B & S wire and hydraulically compacted material subject to agree- ment between buyer and seller. Cobra No. 2 COPPER WIRE NODULES Shall consist of No. 2 unalloyed copper wire scrap nod- ules, chopped or shredded, minimum 97%copper. Maximum metal impurities not to exceed 0.50%alu- CODE ITEM minum and 1% each of other metals or insulation. Hydraulically compacted material subject to agree- ment between buyer and seller. Cocoa COPPER WIRE NODULES Shall consist of unalloyed copper wire scrap nodules, chopped or shredded, minimum 99% copper. Shall be free of excessive insulation and other non-metallics. Maximum metal impurities as follows: Aluminum .OS% Antimony .01% Tin .25% Iron .OS% Nickel .O5% Hydraulically compacted material subject to agree- ment between buyer and seller. Dream LIGHT COPPER Shall consist of miscellaneous, unalloyed copper scrap having a nominal 92%copper content (minimum 88%) as determined by electrolytic assay and shall consist of sheet copper, gutters, downspouts, kettles, boilers, and similar scrap. Should be free of the follow- ing: Burnt hair wire; copper clad; plating racks; grind- ings; copper wire from burning, containing insulation; radiators and fire extinguishers; refrigerator units; electrotype shells; screening; excessively leaded, tinned, soldered scrap; brasses and bronzes; excessive oil, iron and non metallics; and should be reasonably free of ash. Hydraulically briquetted copper subject to agreement. Any items excluded in this grade are also excluded in the higher grades above. Drink REFINERY BRASS Shall contain a minimum of 61.3% copper and maxi- mum 5% iron and to consist of brass and bronze solids and turnings, and alloyed and contaminated copper scrap. Shall be free of insulated wire, grindings, elec- trotypeshells and non-metallics. Hydraulically briquet- ted material subject to agreement. Drove COPPER-BEARING SCRAP Shall consist of miscellaneous topper-containing skim- mings, grindings, ashes, irony brass and copper, residues and slags. Shall be free of insulated wires; copper chlorides; unprepared tangled material; large motors; pyrophoric material; asbestos brake linings; furnace bottoms; high lead materials; graphite cru- cibles; and noxious and explosive materials. Fine pow- dered material by agreement. Hydraulically briquetted material subject to agreement. CODE ITEM piece to measure more than 12" over any one part or weigh over 100 lbs. Eland HIGH GRADE-LOW LEAD BRONZE SOLIDS It is recommended these materials be sold by analysis. Elder GENUINE BABBITT•LINED BRASS BUSHINGS Shall consist of red brass bushings and bearings from automobiles and other machinery, shall contain not less than 12% high tin-base babbitt, and shall be free of iron-backed bearings. Elias HIGH LEAD BRONZE SOLIDS AND BORINGS It is recommended that these materials be sold on sample or analysis. Enerv RED BRASS COMPOSITION TURNINGS Shall consist of turnings from red brass composition material and should be sold subject to sample or analysis. Engel MACHINERY OR HARD BRASS SOLIDS Shall have a copper content of not less than 75%, a tin content of not less than 6%, and a lead content of not less than 6% nor more than i1%, and total impurities, exclusive of zinc, antimony, and nickel of not more than 0.75%; the antimony content not to exceed 0.50%. Shall be free of lined and unlined standard red car boxes. Erin MACHINERY OR HARD BRASS BORINGS Shall have a copper content of not less than 75%, a tin content of not less than 6%, and a lead content of not less than 6% nor more than 11%, and the total impuri- ties, exclusive of zinc, antimony, andnickel of not more than 0.75%; the antimony content not to exceed 0.50%. Fence UNLINED STANDARD RED CAR BOXES (CLEAN JOURNALS) Shall consist of standard unlined and/or sweated rail- road boxes and unlined and/or sweated car journal bearings, free of yellow boxes and iron backed boxes. Ferry LINED STANDARD RED CAR BOKES (LINED JOURNALS) Shall consist of standard babbitt-lined railroad boxes and/or babbitt lined car journal bearings, free of yellow boxes and iron-backed boxes. Grape COCKS AND FAUCETS Shall consist of mixed clean red and yellow brass, including chrome or nickel-plated, free of gas cocks, beer faucets, and aluminum and zinc base die cast material, and to contain a minimum of 35% semi-red. Druid INSULATED COPPER WIRE SCRAP Honey Shall consist of copper wire scrap with various types of insulation. To be sold on a sample or recovery basis, subject to agreement between buyer and seller. Ehony COMPOSITION OR RED BRA55 Shall consist of red brass scrap, valves, machinery bearings and other machinery parts, including miscel- laneouscastings made of capper, tin, zinc, and/or lead. Shall be free of semi-red brass castings (78% to 81% copper); railroad car boxes and other similar high-lead alloys; cocks and faucets; closed water meters; gates; pot pieces; ingots and burned brass; aluminum, silicon, and manganese bronzes; iron and non-metallics. No YELLOW BRASS SCRAP Shall consist of mixed yellow brass solids, including brass castings, rolled brass, rod brass, tubing and mis- cellaneousyellow brasses, including plated brass. Must be free of manganese-bronze, aluminum-bronze, unsweated radiators or radiator parts, iron, and exces- sivelydirty and corroded materials. Must also be free of any type of munitions including, but not limited to, bullet casings. Ivory YELLOW BRASS CASTINGS Shall consist of yellow brass castings in crucible shape, no piece to measure more than 12 inches over any one part; and shall be free of brass forgings, silicon bronze, ;'SCRAP-- SPECIFICATIONS'CIRCULAR2007 =- _ Gnldelines for Nonferrous Scrap -' __ _ CODE ITEM CDDE ITEM aluminum bronze and manganese bronze, and not to Niece NICNEL SILVER TURNINGS contain more than 15% nickel plated material. To be sold by sample or analysis. Label NEW BRASS CLIPPINGS Night Shall consist of the cuttings of new unleaded yellow brass sheet or plate, to be clean and free from foreign substances and not to contain more than 10% of clean brass punchings under''/4 inch. To be free of Muntz metal and naval brass. Lace BRASS SHELL CASES WITHOUT PRIMERS Shall consist of clean fired 70/30 brass shell cases free Noble of primers and any other foreign material. Lady BRASS SHELL CASES WITH PRIMERS Shall consist~of clean fired 70/30 brass shell cases con- taining the brass primers, and containing no other for- eign material. Lake BRASS SMALL ARMS AND RIFLE SHELLS, CLEAN FIRED Nomad Shall consist of clean fired 70/30 brass shells free of bullets, iron and any other foreign material. Lamh BRASS SMALL ARMS AND RIFLE SHELLS, CLEAN MUFFLED (POPPED) Shall consist of clean muffled (popped) 70/30 brass shells free of bullets, iron and any other foreign material. Ocean Lark YELLOW BRASS PRIMER Shall consist of clean yellow brass primers, burnt or unburnt. Shall be free of iron, excessive dirt, corrosion and any other foreign material. Maize MIXED NEW NICKEL SILVER CLIPPINGS Shall consist of one or more nickel silver alloys and the range of nickel content to be specified, free of chrome or any other plating material. Leaded nickel silver clip- pings should be packed and sold separately. Not to con- tain more than 10% of clean punchings under''/a inch. Major NEW NICKEL SILVER CLIPPINGS AND SOLIDS Shall consist of new, clean nickel silver clippings, plate, rod and forgings, and other rolled shapes, free of chrome or any other plating material. Must be sold on nickel content specifications such as 10%-12%-15%- 18%-20%. Leaded nickel silver clippings should be packed and sold separately. A description as to its physical characteristics should be made in offering all nickel silver material. Molar NEW SEGREGATED NICKEL SILVER CLIPPINGS Shall consist of one specified nickel silver alloy. Not to contain more than 10%of clean punchings under '/n inch. YELLOW BRASS ROD TURNINGS Shall consist strictly of rod turnings, free of aluminum, manganese, composition, Tobin and Muntz metal turn- ings; not to contain over 3% free iron, oil or other moisture; to be free of grindings and babbitts; to con- tain not more than 0.30% tin and not more than 0.15% alloyed iron. NEW YELLOW BRASS ROD ENDS Shall consist of new, clean rod ends from free turning brass rods or forging rods, not to contain more than 0.30% tin and not more than 0.15% alloyed iron. To be free of Muntz metal and naval brass or any other alloys. To be in pieces not larger than 12" and free of foreign matter. YELLOW BRASS TURNINGS Shall consist of yellow brass turnings, free of alu- minum, manganese and composition turnings, not to contain over 3% of free iron, oil or other moisture; to be free of grindings and babbitts. To avoid dispute, to be sold subject to sample or analysis. MIXED UNSWEATED AUTO RADIATORS Shall consist of mixed automobile radiators, to be free of aluminum radiators, and iron-finned radiators. All radiators to be subject to deduction of actual iron. The tonnage specification should cover the gross weight of the radiators, unless otherwise specified. Pates ADMIRALTY BRASS CONDENSER TUBES Shall consist of clean sound Admiralty condenser tub- ing which may be plated or unplated, free of nickel alloy, aluminum alloy, and corroded material. Pallu ALUMINUM BRASS CONDENSER TUBES Shall consist of clean sound condenser tubing which maybe plated or unplated, free of nickel alloy and cor- roded material. Palms MUNT2 METAL TUBES Shall consist of clean sound Muntz metal tubing which may be plated or unplated, free of nickel alloy, alu- minum alloy, and corroded material. Parch MANGANESE RRONZE SOLIDS Shall have a copper content of not less than 55%, a lead content of not more than 1%, and shall be free of aluminum bronze and silicon bronze. Malic OLD NICKEL SILVER "°"~ Shall consist of old nickel silver sheet, pipe, rod, tubes, Tablet wire, screen, soldered or unsoldered. Must not be trimmed seams alone, and must also be free of foreign substances, iron rimmed material and other metals. Melon -BRASS PIPE Shall consist of brass pipe free of plated and soldered Tabloid materials or pipes with cast brass connections. To be sound, clean pipes free of sediment and condenser tubes. Naggy NICKEL SILVER CASTINGS To be packed and sold separately. CLEAN ALUMINUM LITHOGRAPHIC SHEETS To consist of 1000 and/or 3000 series alloys, to be free of paper, plastic, excessively inked sheets, and any oth- ercontaminants. Minimum size of 3" (8 cm) in any direction. NEW, CLEAN ALUMINUM LITHOGRAPHIC SHEETS To consist of 1000 and/or 3000 series alloys, uncoat- ed, unpainted, to be free of paper, plastic, ink, and any other contaminants. Minimum size of 3" (8 cm) in any direction. -- 'Guidelines fOf NanfeffeuS Screp - - - -INSTITUTE OF SCRAP RECYCLING.INDUSTRIES INC `, CDOE ITEM Taboo MIXED LOW COPPER ALUMINUM CLIPPINGS AND SOLIDS Shall consist of new, clean, uncoated and unpainted low copper aluminum scrap of two or more alloys with a minimum thickness of 0.015 inches (.38 mm) and to be free of 2000 and 7000 series, hair wire, wire screen, punchings less 1/2 inch (1.25 cm) diameter, dirt, and other non-metallic items. Grease and oil not to total more than 1%. Variations to this specification should be agreed upon prior to shipment between the buyer and seller. CODE ITEM other plastic, glass, wood, dirt, grease, trash, and other foreign substances. Any free lead is basis for rejection. Any and all aluminum items, other than used beverage cans, are not acceptable. Items not covered in the specifications, including moisture, and any variations to this specification should be agreed upon prior to shipment between the seller and buyer. Taldon Taint/ CLEAN MIXED OLD ALLOY SHEET ALUMINUM Tabor Shall consist of clean old allay aluminum sheet of two or more alloys, free of foil, venetian blinds, castings, hair wire, screen wire, food or beverage containers, radiator shells, airplane sheet, bottle caps, plastic, dirt, and other non-metallic items. Oil and grease not to total more than 1%. Up to 10% Tale permitted. Take NEW ALUMINUM CAN STOCN Shall consist of new low copper aluminum can stock and clippings, clean, lithographed or not lithographed, and coated with clear lacquer but free of lids with seal- ers,iron, dirt and other foreign contamination.0il not to exceed 1%. Talc POST•CONSUMER ALUMINUM CAN SCRAP Shall consist of old aluminum food and/or beverage cans. The material is to be free of other scrap metals, foil, tin cans, plastic bottles, paper, glass, and other non-metallic Taldork items. Variations to this specification should be agreed upon prior to shipment between the buyer and seller. Talcred SHREDDED ALUMINUM USED BEVERAGE CAN (UBC) SCRAP Shall have a density of 12 to 17 pounds per cubic foot (193 to 273 kg/m3). Material should contain maximum 5%fines less than 4 mesh (U.S. standard screen size) (6.35 mm). Must be magnetically separated material and free of steel, lead, bottle caps, plastic cans and other plastics, glass, wood, dirt, grease, trash, and oth- erforeign substances. Any tree lead is basis for rejec- tion. Any and all aluminum items, other than used beverage cans, are not acceptable. Variations to this specification should be agreed upon prior to shipment between the seller and buyer. Taldack DENSIFIED ALUMINUM USED BEVERAGE CAN (UBC) SCRAP Shall have a biscuit density of 35 to 50 pounds per cubic foot (562 to 802 kg/m3). Each biscuit not to exceed 60 pounds (272 kg). Nominal biscuit size range from l0"to 13"x101/4"(25.4x33x26 cm)to 20"x 61/4" x 9" (50.8 x 15.9 x 22.9 cm). Shall have banding slots in both directions to facilitate bundle banding. All biscuits comprising a bundle must be of uniform size. Size: Bundle range dimensions acceptable are 41" to 44" x 51" (104 to 112 cm) to 54" x 54" (137 x 137 cm) to 56" (142 cm) high. The only acceptable tying method shall be as follows: Using minimum 5/8" (1.6 cm) wide by .020" (.OS cm) thick steel straps, the bundles are to be banded with one vertical band per row and a mini- mum of two firth (horizontal) bands per bundle. Use of skids and/or support sheets of any material is not acceptable. Must be magnetically separated material and free of steel, lead, bottle caps, plastic cans and BALED ALUMINUM USED BEVERAGE CAN (UBC) SCRAP Shall have a minimum density of 14 pounds per cubic foot (225 kg/m3), and a maximum density of 17 pounds per cubic foot (Z73 kg/m3) for unflattened UBC and 22 pounds per cubic foot (353 kg/m3) for flattened UBC. Size: Minimum 30 cubic feet (.85 m3), with bale range dimensions of 24" to 40" (61 to 132 cm) by 30" to 52" (76 to 132 cm) by 40" to 84"(102 to 213 cm). The only acceptable tying method shall be as follows: four to six 5/8" (1.6 cm) x .020" (5 mm) steel bands, or six to ten ii13 gauge steel wires (aluminum bands or wires are acceptable in equivalent strength and number). Use of skids and/or support sheets of any material is not acceptable. Must be magnetically separated material and free of steel, lead, bottle caps, plastic cans and other plastic, glass, wood, dirt, grease, trash, and other foreign substances. Any free lead is basis for rejection. Any and all aluminum items, other than used beverage cans, are not acceptable. Variations to this specifica- tion should be agreed upon prior to shipment between the buyer and seller. BRIOUETUED ALUMINUM USED BEVERAGE CAN (UBC) SCRAP Shall have a briquette density of 50 pounds per cubic foot (800 kg/m3) minimum. Nominal briquette size shall range from 12" to 24" (30.5 x 61 cm) x 12" to 24" (30.5 x 61 cm) in uniform profile with a variable length of 8" (20.3 cm) minimum and 48" (122 cm) maximum. Briquettes shall be bundled or stacked on skids and secured with a minimum of one vertical band per row and a minimum of one girth band per horizontal layer. Briquettes not to overhang pallet. Total package height shall be 48 (122 cm) maximum. Banding shall be at least 5/8" (1.6 cm) wide by .020" (5 mm) thick steel strapping or equivalent strength. The weight of any bundle shall not exceed 4,000 pounds (1.814 mt). Mate- rial must be magnetically separated and free of steel, plastic, glass, dirt and all other foreign substances. Any and all aluminum items other than UBC are unaccept- able.Any free lead is basis for rejection. Items not cov- ered in the specification, including moisture, and any variations to this specification should be agreed upon prior to shipment between the buyer and seller. Tale PAINTED SIDING Shall consist of clean, low copper aluminum siding scrap, painted one or two sides, free of plastic coating, iron, dirt, corrosion, fiber, foam, or fiberglass backing or other non-metallic items. Talk ALUMINUM COPPER RADIATORS Shall consist of clean aluminum and copper radiators, and/or aluminum fins on copper tubing, free of brass tubing, iron and other foreign contamination. Tall E.C. ALUMINUM NODULES Shall consist of clean E.C. aluminum, chopped or shred SCRAP SPECIFICATIONS CIRCULAR 2007 ~~ . - GmdelinesfarNOnferrousScrap . ~ _ CODE ITEM ded, free of screening, hair-wire, iron, copper, insulation and other non-metallic items. Must be free of minus 20 mesh material. Must contain 99.45%aluminum content. Tally ALL ALUMINUM RADIATORS FROM AUTOMOBILES Shall consist of clean aluminum radiators and/or con- densers.Should be free of all other types of radiators. All contaminants including iron, plastic, and foam not to exceed 1% of weight. Any deviation to this specifica- tion, including oxidation and aluminum content, to be negotiated between buyer and seller. Talon NEW PURE ALUMINUM WIRE AND CABLE Shall consist of new, clean, unalloyed aluminum wire or cable free from hair wire, ACSR, wire screen, iron, insu- lotion and other non-metallic items. Tann NEW MIXED ALUMINUM WIRE AND CABLE Shall consist of new, clean, unalloyed aluminum wire or cable which may contain up to 10% 6000 series wire and cable free from hair wire, wire screen, iron, insula- tionand other non-metallic items. Tarry A CLEAN ALUMINUM PISTONS Shall consist of clean aluminum pistons to be free from struts, bushings, shafts, iron rings and non-metallic items. Oil and grease not to exceed 2%. Tarry B CLEAN ALUMINUM PISTONS WITH STRUTS Shall consist of clean whole aluminum pistons with struts. Tense Material is to be free from bushings, shafts, iron and non- metallic items.0iland grease not to exceed 2%. Tarry C IRONY ALUMINUM PISTONS Shall consist of aluminum pistons with non-aluminum attachments to be sold on a recovery basis or by spe- Tepid cial arrangement between buyer and seller. Tassel OLD MIXED ALUMINUM WIRE AND CABLE Shall consist of old, unalloyed aluminum wire and cable which may contain up to 10% 6000 series wire and cable with not over 1% free oxide or dirt and free from hair wire, wire screen, iron, insulation and other non- metallic items. Taste OLD PURE ALUMINUM WIRE AND CABLE Shall consist of old, unalloyed aluminum wire and cable containing not over 1% free oxide or dirt and free from Tesla hair wire, wire screen, iron, insulation and other non- metallic items. Tata NEW PRODUCTION ALUMINUM EXTRUSIONS Shall consist of one alloy (typically 6063). Material may contain "butt ends" from the extrusion process but must be free of any foreign contamination. Anodized material is acceptable. Painted material or alloys other than 6063 must be agreed upon by buyer Tetra and seller. Toto ALUMINUM EXTRUSIONS "10/10" Material to consist of new production and old/used 6063 eztrusions that may contain up to (but not exceed)10 percent painted extrusions and 10 percent 6061 alloy extrusions. Must not contain other alloys of aluminum. Material should be free of zinc corners, iron attachments, felt, plastic, paper, cardboard, thermo break, and dirt and other contaminants. CODE ITEM Tutu ALUMINUM EXTRUSION DEALER GRADE Shall consist of old extruded aluminum of one alloy, typically alloy 6063, 6061, or 7075. Material must be free of iron, thermo break, saw chips, zinc corners, dirt, paper, cardboard, and other foreign contamination. Percentages of paint or other alloys to be agreed upon by buyer and seller. Teens SEGREGATED ALUMINUM BORINGS AND TURNINGS Shall consist of aluminum borings and turnings of one specified alloy. Material should be free of oxidation, dirt, free iron, stainless steel, magnesium, oil, flamma- bleliquids, moisture and other non-metallic items. Fines should not exceed 3% through a 20 mesh (U.S. standard) screen. Telic MIXED ALUMINUM BORINGS AND TURNINGS Shall consist of clean, uncorroded aluminum borings and turnings of two or more alloys and subject to deductions for fines in excess of 3% through a 20 mesh screen and dirt, free iron, oil, moisture and all other non-metallic items. Material containing iron in excess of 10%and/or free magnesium or stainless steel or containing highly flammable cutting com- poundswill not constitute good delivery. To avoid dis- pute, material should be sold on basis of definite maximum zinc, tin and magnesium content. MIXED ALUMINUM CASTINGS Shall consist of all clean aluminum castings which may contain auto and airplane castings but no ingots, and to be free of iron, brass, dirt and other non-metallic items. Oil and grease not to total more than 2%. AIRCRAFT SHEET ALUMINUM Should be sold on recovery basis or by special arrangements with purchaser. Terse NEW ALUMINUM FOIL Shall consist of clean, new, pure, uncoated 1000 and/or 3000 and/or 8000 series alloy aluminum foil, free from anodized foil, radar foil and chaff, paper, plastics, or any other non-metallic items. Hydraulically briquet- ted material and other alloys by agreement between buyer and seller. POST CONSUMER ALUMINUM FOIL Shall consist of baled old household aluminum foil and formed foil containers of uncoated 1000, 3000 and 8000 series aluminum alloy. Material may be anodized and contain a maximum of 6% organic residue. Materi- al must be tree from radar chaff foil, chemically etched foil, laminated foils, iron, paper, plastic and other non- metalliccontaminants. NEW COATED ALUMINUM FOIL Shall consist of new aluminum foil coated or laminated with ink, lacquers, paper, or plastic. Material shall be clean, dry, free of loose plastic, PVC and other non- metallic items. This foil is sold on a metal content basis or by sample as agreed between buyer and seller. Thigh ALUMINUM GRINDINGS Should be sold on recovery basis or by special arrangements with purchaser. LODE ITEM CODE ITEM Thfrl ALUMINUM DROSSES, SPATTERS, SPILLINGS, SNIMMINGS excessively oxidized material, air bag canisters, or any AND SWEEPINGS sealed or pressurized items. Any variation to be sold by Should be sold on recovery basis or by special special arrangement between buyer and seller. arrangements with purchaser. Tweak FRAGMENTIZER ALUMINUM SCRAP (from Automobile Throb SWEATED ALUMINUM Shredders) Shall consist of aluminum scrap which has been sweat- Derived from either mechanical or hand separation, the ed or melted into a form or shape such as an ingot, material must be dry and not contain more than 4% sow or slab for convenience in shipping; to be free maximum free zinc,l°k maximum free magnesium, and from corrosion, dross or any non-aluminum inclusions. 1.5%maximum of analytical iron. Not to contain more Should be sold subject to sample or analysis. than a total 5% maximum of non-metallics, of which no more than 1°k shall be rubber and plastics. To be free of Tooth SEGREGATED NEW ALUMINUM ALLOY CLIPPINGS AND SOLIDS excessively oxidized material, air bag canisters, or any Shall consist of new, clean, uncoated and unpainted sealed or pressurized items. Any variation to be sold by aluminum scrap of one specified aluminum alloy with a special arrangement between buyer and seller. minimum thickness of .015" (.38 mm) and to be free of hair wire, wire screen, dirt and other non-metallic Twire BURNT FRAGMENTIZER ALUMINUM SCRAP (from Automobile items. Oil and grease not to total more than 1%. Also Shredders) free from punchings less than 1/2" (1.27 cm) in size. Incinerated or burned material must be dry and not contain more than X%(%to be agreed upon by buyer Tough MIXED NEW ALUMINUM ALLOY CLIPPINGS AND SOLIDS and seller) ash from incineration, 4% maximum free Shall consist of new, clean, uncoated and unpainted zinc, l%maximum free magnesium, and 1.5% maxi- aluminumscrap of two or more alloys with a minimum mum of analytical iron. Not to contain more than a thickness of .015" (.38 mm) and to be free of hair wire, total 5% maximum of non-metallics, of which no more wire screen, dirt and other non-metallic items.0il and than 1% shall be rubber and plastics. To be tree of grease not to total more than 1%. Also free from excessively oxidized material, air bag canisters, or any punchings less than 1/2" (1.27 cm) in size. sealed pressurized items. Any variation to be sold by Tread SEGREGATED NEW ALUMINUM CASTINGS, FORGINGS AND special arrangement between buyer and seller. EXTRUSIONS Shall consist of new, clean, uncoated aluminum Last- - ings, forgings, and extrusions of one specified alloy only and to be free from sowings, stainless steel, zinc, Saves OLD ZINC DIE CAST SCRAP iron, dirt, oil, grease and other non-metallic items. Shall consist of miscellaneous old zinc base die cas[- ings,with orwithout iron and other foreign attach- Trama Aluminum Auto or Truck Wheels menu. Must be free of borings, turnings, dross pieces, Shall consist of clean, single-piece, unplated aluminum chunks, melted pieces and skimmings. All unmeltables, wheels of a single specified alloy, free of all inserts, dirt, foreign attachments, and volatile substances steel, wheel weights, valve stems, tires, grease and oil (such as rubber, cork, plastic, grease, etc.) are and other non-metallic items. Variations to this specifi- deductible. Material containing in excess of 30%iron cation should be agreed upon prior to shipment will not constitute good delivery. between the buyer and seller. Scabs NEW ZINC DIE CAST SCRAP Trump ALUMINUM AUTO CASTINGS Shall consist of new or unused, clean, zinc base die Shall consist of all clean automobile aluminum castings castings. Castings to be unplated, unpainted, and free of sufficient size to be readily identified and to be free from corrosion. from iron, dirt, brass, bushings, and non-metallic items. Oil and grease not to total more than 2%. Scoot ZINC DIE CAST AUTOMOTIVE GRILLES Shall consist of clean, old or used zinc base die cast Twang INSULATED ALUMINUM WIRE SCRAP automotive grilles, free from soldered material. All far- Shall consist of aluminum wire scrap with various types eign attachments and extraneous materials are of insulation. To be sold on a sample or recovery basis, deductible. subject to arrangement between buyer and seller. Scope NEW PLATED ZINC DIE CAST SCRAP Twist ALUMINUM AIRPLANE CASTINGS Shall consist of new or unused clean, plated zinc base Shall consist of clean aluminum castings from airplanes die castings, free from corrosion. and to be free from iron, dirt, brass, bushings, and non- ' metallic items.0il and grease not to total more than 2% Score OLD SCRAP ZINC Shall consist of clean dry scrap zinc, such as sheets, jar Twitch FLOATED FRAGMENTIZER ALUMINUM SCRAP (from lids, clean unalloyed castings and anti-Corrosion plates. Automobile Shredders) Borings and turnings are not acceptable. Material must Derived from wet or dry media separation device, the not be excessively corroded or oxidized. All foreign material must be dry and not contain more than 1% attachments and extraneous materials are deductible. maximum free zinc, t°h maximum free magnesium, and 1°h maximum of analytical iron. Not to contain more Screen NEW ZINC CLIPPINGS than a total 2%maximum of non metallics, of which no Shall consist of any new pure zinc sheets or stampings more than 1% shall be rubber and plastics. To be free of free from corrosion. To contain no foreign material or ~ 'SCRAP SPECIFICATIONS:C:IRCULAR 2007 Gmdehnes far Nonferrous Scrap ~LLj __ ~ CODE ITEM attachments. Printers zinc, such as engravers zinc, lith- ograph sheets and addressograph plates subject to spe- cial arrangements. Printers zinc to be free of routings. Scribe CRUSHED CLEAN SORTED FRAGMENTIZERS DIE CAST SCRAP, AS PRODUCED FROM AUTOMOBILE FRAGMENTIZERS To be clean, free of dirt, oil, glass, rubber, and trash. To contain a maximum of 5% unmeltables such as free iron, copper, aluminum and other metals. Scroll UNSORTED ZINC DIE CAST SCRAP Produced from automobile fragmentizers. Material to contain about BS%unc-bearing scrap. Other nonfer- rous metals such as aluminum, stainless steel, red met- al, etc., to be about 40°k. Insulated copper wire about 1%. Trash, dirt, glass, rubber, oil, iron, not to exceed 5%. Any variations to be sold by special arrangement between buyer and seller. Scrub HOT DIP GALVANIZERS SLAB ZINC DROSS (Batch Process) Shall consist only of galvanizers unsweated zinc dross in slab form from hot dip galvanizing (Batch Process) with a minimum zinc content of 92% and shall be free of skimmings and tramp iron. Broken pieces under 2" in diameter shall not exceed 10% of the weight of each shipment. Slabs shall not weigh over 100 pounds each. Heavier pieces acceptable upon mutual agreement between buyer and seller. Material from continuous galvanizing operation is not acceptable. Blocks are acceptable upon mutual agreement. Scull ZINC DIE CAST SLABS OR PIGS Shall consist of melted zinc base die cast materials, in smooth clean solid slabs or pigs. Material to be free from drosses and to contain a minimum zinc content of 90%. To contain a maximum of 0.1% nickel and maximum of 1% lead. Blocks are acceptable upon mutual agreement. Seal CONTINUOUS LINE GALVANIZING SLAB ZINC TOP DROSS Shall consist of unsweated zinc dross removed from the top of a continuous line galvanizing bath, in slab form not weighing in excess of 100 pounds each, with a minimum zinc content of 90%. Heavier pieces accept- ableupon mutual agreement between buyer and sell- er. Shall be free of skimmings. Broken pieces under 2" in diameter shall not exceed 10% of the weight of each shipment. Seam CONTINUOUS LINE GALVANIZING SLAB ZINC BOTTOM DROSS Shall consist of unsweated zinc dross removed from the bottom of a continuous line galvanizing bath, in slab form not weighing in excess of 100 pounds each, with a minimum zinc content of 92%. Heavier pieces acceptable upon mutual agreement between buyer and seller. Shall be free of skimmings. Broken pieces under 2" in diameter shall not exceed 10% of the weight of each shipment. CODE ITEM Walnut MAGNESIUM SCRAP Shall consist of magnesium castings, magnesium engine blocks and transmission casings, bomber and car wheels, extrusions, and sheet. Material to be free from brass and copper inserts and all foreign attach- ments. To be free of anodes, hollow castings and explo- sives. Percentages of and penalties for dirt, oil, grease, and iron to be subject to agreement between buyer and seller. Excessively large pieces to be negotiated between buyer and seller. Wine MAGNESIUM ENGRAVER PLATES To be free of copper, aluminum, zinc, and electrotype plates. To be clean and free of all foreign attachments. Magnesium plates shipped loose by agreement between buyer and seller. Wood MAGNESIUM DOCKBOARDS Shall consist of clean magnesium dockboard cut or broken to size agreed upon by buyer and seller. To be free of all foreign attachments. World MAGNESIUM TURNINGS It is recommended that these materials be sold by special arrangement between buyer and seller. Racks SCRAP LEAD-SOFT Shall consist of clean soft scrap lead, free of other materials such as drosses, battery plates, lead covered cable, hard lead, collapsible tubes, foil, type metals, alu- minum,zinc, iron and brass fittings, dirty chemical lead and radioactive materials. Review packaging specifica- tions and regulatory status pertaining to shipping with buyer prior to sale. Radto MIXED HARD/SOFT SCRAP LEAD Shall consist of clean lead solids, free of other materi- als, such as drosses, battery plates, lead covered cable, collapsible tubes, type metals, aluminum, zinc, iron and brass fittings, dirty chemical lead and radioactive mate- rials. Review packaging specifications and regulatory status pertaining to shipping with buyer prior to sale. Ratls Shelf PRIME ZINC DIE CAST DROSS Shall consist of metal skimmed from the top of pot of molten zinc die Last metal. Must be unsweated, unfluxed, shiny, smooth, metallic and free from corro- sion or oxidation. Should be poured in molds or in Rains small mounds weighing not over 75 pounds each. Zinc content shall be minimum of 85%. LEAD BATTERY PLATES Specify whether automotive, industrial or mixed. Also whether they are groups or loose. The only other metallic that might be included could be lead connec- tors. To be free of non-metallics, i.e., plastic or rubber, with the exception that separators may be included. Material to be dry. May be bought on an assay basis or a flat price. Submarine plates subject to negotiation. Review packaging specifications and regulatory status pertaining to shipping with buyer prior to sale. SCRAP DRAINED/DRY WHOLE INTACT LEAD To be free of any liquid. Cases to be either plastic or rubber and be complete including caps. Non-lead CODE Ii EM (nicad, ni-fe, carbonaire, etc.) not acceptable. Industrial, steel cased, aircraft (aluminum cased) and partial, cracked or broken batteries and batteries without caps subject to special agreement. Review packaging speci- ficationsand regulatory status pertaining to shipping with buyer prior to sale. Rakes BATTERY LUGS To be free of scrap lead, wheel weights, battery plates, rubber and/or plastic case material and other foreign material. A minimum of 97% metallic content is required. Review packaging specifications and regulato- ry status pertaining to shipping with buyer prior to sale. Relay LEAD COVERED COPPER CABLE Free of armored covered cable, and foreign material. Rents LEAD DROSS Should be clean and reasonably free of other materials such as iron, dirt, harmful chemicals orother metals. To be free of radioactive materials, aluminum and zinc. May be bought on an assay basis or as agreed to by ~~ buyer and seller. Other metals present such as antimo- ny, tin, etc., to be accounted for as agreed between buyer and seller. Material to be readily dumped from drums. An extra charge may be assessed if material has to be mechanically removed. Review packaging specification and regulatory status pertaining to ship- ping with buyer prior to sale. Rink SCRAP WET WHOLE INTACT LEAD BATTERIES Consisting of SLI (starting, lighting & ignition), automo- tive, truck, 8-D and commercial golf cart and marine- typebatteries. Cases to be either plastic or rubber and to be complete. Non-lead (i.e., ni-cad, ni-fe, carbonaire, etc.) not acceptable. Other types i.e. aircraft (alu- minum) gel-cel, lawnmower, etc., and partial, cracked or broken batteries or batteries without caps and the amount of liquid content and any variations to the specification subject to special agreement. Review packaging specifications and regulatory status pertain- ing to shipping with buyer prior to sale. Rono SCRAP INDUSTRIAL INTACT LEAD CELLS Consisting of plates enclosed by some form of com- plete plastic case. Partial, cracked or broken cells, cells without caps and the amount of liquid content and any variations to the specification subject to special agree- ment. Review packaging specifications and regulatory status pertaining to shipping with buyer prior to sale. Roper SCRAP WHOLE INTACT INDUSTRIAL LEAD BATTERIES Consisting of bus, diesel, locomotive, telephone and/or steel cased batteries. Submarine batteries subject to negotiation. Partial, cracked, broken batteries or bat- teries without caps and the amount of liquid content and any variations to the specification subject to spe- cialagreement. Review packaging specifications and regulatory status pertaining to shipping with buyer pri- or to sale. CODE ITEM Review packaging specifications and regulatory status pertaining to shipping with buyer prior to sale. Aroma NEW NICKEL SCRAP Shall consist of clean new sheet, plate, bar, tube, and any other wrought nickel scrap solids. Nickel minimum 99%, Cobalt maximum 0.25%; Copper maximum 0.50%. Free of castings, as well as any foreign attach- ments orother contamination. Burly OLD NICKEL SCRAP Shall consist of old and/or new sheet, plate, bar, tube, and any other wrought nickel scrap solids. Material to contain a minimum of 98% nickel; Copper maximum 0.50%. This grade to be free of castings, soldered, brazed, sweated, or painted material, other metallic coating, foreign attach- ments, orany other contamination. Dandy NEW CUPRO NICKEL CLIPS AND SOLIDS Shall consist of clean, new, segregated (normally accepted analysis grades) either 70/30, 80/20, or 90/10 cupro nickel tube, pipe, sheet, plate, or other wrought solid forms. Must be free of foreign attach- ments orany other contamination. Daunt CUPRO NICKEL SOLIDS Shall consist of old, and/or new, segregated (normally accepted analysis grades) either 70/30, 80/20, 90/10 cupro nickel tube, pipe, sheet, plate, or other wrought solid forms. Maximum 2%sediment allowable. Any , other forms of cupro nickel solids such as castings, gates, risers, spills, etc., packaged separately, mayor may not be included, only upon agreement between buyer and seller. Must be free of foreign attachments and all other contamination. Other particulars con- cerning physical description, analysis and packaging to be agreed upon between buyer and seller. DBCOy CURPO NICKEL SPINNINGS, TURNINGS, BORINGS Shall consist of clean, segregated (normally accepted analysis grades) either 70/30, 80/20, 90/10 cupro nick- el spinnings,turnings, or borings. Particulars concern- ing physical description, analysis, and packaging, to be agreed upon between buyer and seller. Delta SOLDERED CUPRO NICKEL SOLIDS Shall consist of segregated (normally accepted analysis grades) either 70/30, 80/20, 90/10 cupro nickel solids, soldered, brazed, or sweated material. Must be free of trimmed seams and edges and all other contamination. Depth MISCELLANEOUS NICKEL-COPPER AND NICKEL•COPPER IRON Shall consist of miscellaneous scrap in which the basic elements, by weight, are nickel and copper, such as copper nickel peelings, plating racks, and hangers, and all nickel and copper in attached or combined form. In all cases, miscellaneous nickel copper scrap should be sold by description and analysis. Ropes WHEEL WEIGHTS Hitch NEW R-MONEL CLIPPINGS AND SOLIDS To consist of lead tire balances with or without iron Shall consist of clean, new, R-Monel sheet, plate, bar, clips. Not to include scrap lead, lugs or plates unless rod, tube, pipe, or any other wrought scrap. Must be .specifically agreed to. To be free of foreign material. free of any foreign attachments or all other contami- nation. =SCRAP SPECIFICATIONS~CIRCULAR 2007 _ Guidelines for X°dferrous Scrap - CODE ITEM House NEW MIXED MONEL SOLIDS AND CLIPPINGS Shall consist of new, clean R and K-Monel solids and clippings. Free of cast material, foreign attachments and all other contamination. Ideal OLD MONEL SHEET AND SOLIDS Shelmo Shall consist of clean R and K-Monel solids such as sheet, plate, pipe, rods, forgings, screen and wire cloth. Must be free of soldered, brazed, welded, or sweated material, cast material, foreign attachments, and all other contamination. Indian K-MONEL SOLIDS Shall consist of clean K-Monet solids. Junto SOLDERED MONEL SHEET AND SOLIDS Shall consist of soldered and/or brazed miscellaneous grades of Monet alloys in either wrought or cast farm. Must be free of trimmed seams and edges, non-metallic filling, foreign attachments, and all other contamination. Particulars concerning physical description, assay, and packaging to be agreed upon between buyer and seller. Lemon MONEL CASTINGS Shall consist of various types of clean Monet castings, assaying minimum 60%nickel. Must be free of foreign attachments or any other contamination. Lemur MONELTURNINGS Shall consist of mixed Monet turnings and borings con- taining aminimum of 60%nickel content, on a dry basis. PeNoe 200 SERIES STAINLESS STEEL SCRAP SOLIDS Shall consist of all types of clean AISI Series Stainless Steel Scrap Solids, which contain a maximum of .5%cop- per,free of foreign attachments and other contamination. Sabot STAINLESS STEEL SCRAP Shall consist of clean 18-8 type stainless steel clips and solids containing a minimum 7%nickel, l6%chrome, and have a maximum of .50% molybdenum, .50% copper, .045% phosphorous, and .03% sulfur, and oth- erwise free of harmful contaminants. Particulars con- cerning physical description, grading, additional analysis, and preparation to be agreed upon between buyer and seller. Ultra STAINLESS STEEL TURNINGS Shall consist of clean 18-8 type stainless steel turnings Containing a minimum 7%nickel and 16%chrome, and to be free of nonferrous metals, nonmetallics, exces- sive iron, oil and other contaminants. Particulars con- cerning physical description, assay, and packaging to be agreed upon between buyer and seller. Vaunt EDISON BATTERIES Nickel iron batteries to be sold free of crates, copper terminal connectors, and excess liquid. Must be free of nickel cadmium batteries. Elmo MIXED ELECTRIC MOTORS Shall consist of whole electric motors and/or disman- tled electric motor parts that are primarily copper- wound. May contain aluminum-wound material, subject CODE ITEM to agreement between buyer and seller. No excessive steel attachments such as gear reducers, iron bases, and pumps, or loose free iron allowed. Specification not to include sealed units or cast iron compressors. SHREDDED ELECTRIC MOTORS (also called "shredder pickings" or "meatballs") Shall consist of mixed copper-bearing material from fer- rous shredding, comprised of motors without cases. May contain aluminum-wound material and insulated copper harness wire, subject to agreement between buyer and seller. Trace percentages of other contaminants and fines may be present. No free iron or sealed units. Zebra (High Density) Shall consist of high density nonferrous metals pro- duced by media separation technology containing brass, copper, zinc, nonmagnetic stainless steel, and copper wire. Material to be dry and free from excess oxidation. The percentage and types of metals other than these, as well as the percentage and types of non- metallic contamination, are to be agreed upon between the buyer and seller. Zeppelin (Light Density) Shall consist oflight-density nonferrous metals pro- duced by media separation technology and contain thin-gauge aluminum and magnesium. Material to be dry and free from excess oxidation. The percentage and types of metals other than aluminum and magne- sium, as well as the percentage and types of nonmetal- lic contamination, are to be agreed upon between the buyer and seller. Zorba FRAGMENTIZER NONFERROUS MIXED METAL SCRAP (from Automobile Shredders) Shall be made up of a combination of the nonferrous metals: aluminum, copper, lead, magnesium, stainless steel, nickel, tin, and zinc, in elemental or alloyed (solid) form. The percentage of each of these metals within the nonferrous concentrate may be subject to agree- ment between buyer and seller, may vary from shred- der to shredder and may, in some cases, be zero for a particular metal. Shall be obtained by eddy current, air separation, flotation, screening, other segregation technique(s) or a combination thereof. Shall have passed one or more magnets to reduce or eliminate free iron and/or large iron attachments. Shall be free of radioactive material, dross or ash. May be screened to permit description by specific size ranges. May con- tain high density non-metallics. Items of exclusion, inclusion or limitation not set out in the above specifi- cations, such as moisture and free iron and/or attach- ments orthe presence or absence of other metals, are subject to agreement between buyer and seller. Mate- rial to be bought/sold under this guideline shall be identified as Zorba with a number to follow indicating the estimated percentage nonferrous metal content of the material (e.g., Zorba 90-means the material con- tainsapproximately 90%nonferrous metal contenU. Ranch BLOCK TIN Block tin must assay minimum of 98% tin, and to be free of liquids, solder, and brass connections, pewter, pumps, Pot pieces, and dirt. Ranks PEWTER Shall consist of tableware and soda fountain boxes but should contain a minimum of 84% tin. Siphon tops to be accounted for separately. Material must be free of brass, zinc, and other foreign metals. Raves HIGH TIN BASE BABBITT Shall contain a minimum of 78% tin and be free of brassy or zincy metals. Roses MIXED COMMON BABBITT Shall consist of lead base bearing metal containing not less than 8%tin, free from Allens metal, ornamental, antimonial and type metal. Must be free from all zinc and excessive copper in the alloy. Identification Checklist for Precious Metals This Identification Check List for Precious Metals sets up a general basis for identifying types and grades of precious met als scrap by the scrap processor who will be familiar both to the precious metals refiner and to the plants generating pre- cious metals scrap. By checking this identification list, the scrap processor gives the refiner a fairly accurate conception of the material the processor has on hand and offers a basis for the refiner to quote an estimated price for the material. Due to the high values and the constantly changing character of precious metal scrap, it is often the practice in the industry to require a sample to be submitted before giving refining schedules. I. Scrap Sources REFINED SILVER METAL - 99.9 MIN. PERCENT Silver-bearing materials: Anodes Assem b I ies-Electrical Batteries Silver/Copper Plated Silver/Cadmium Silver/Zinc Silver/Magnesium Blanking Scrap-Punchings Brazing Alloys Brushes-Electric Motors Bullion Chemical Salts Clad Bi-Metal Parts Coin Silver Contacts Dental Amalgam Films Industrial X-Ray Medical X-Ray Lithographic Photographic Negatives Filters-Plating Flake-From Hypo Solution Recovery Systems Hooks-Plating-NOdu les Jewelry Sweeps Paints-Paste Paper-Reproduction Plated Parts-Electrical-Electronic Plated Serving Pieces Plated Utensils Plated Wire Powders-Granulated Punchouts Relays-Electrical Resins Silver Lined Bearings-Diesel Locomotives and Aircraft Sludges-Plating and Precipitates Solutions-Plating Sterling Silver Tin Lead Alloys-Contaminated Turnings Wave Guides Wiping Rags REFINED GOLD METAL - 99.5 MIN. PERCENT REFINED GOLD SPONGE - 99.5 MIN. PERCENT Gold-bearing materials: Brazing Alloys Clad Metal Parts Contacts Dental Alloys Dental Scrap Dental Sweeps and Grindings Diodes Filled Scrap Filters-Plating Flakes Flashinqs Foil Hooks-Plat ing-Nodules Jewelry Scrap Jewelry Sweeps and Grindings Paints and Paste Peelings Placer Gold Plated Parts-Electrical Plated Wire Powders Printed Circuit Boards - Printed Circuit Boards with Components Punchouts Resins-Plating Salts-Chemical Sludges-Plating Solutions Sponge Tin Lead Alloys-Contaminated Transistors Wiping Rags Wire __ ,._~. .SCRAP~SPECIFICATIONSCIRCULAR 2007 -~ ~_: -- _ _ _. ~. '= ~ ~~ ~ ~ - Gndeliaes'tdr Nonferrous Scrap REFINED PALLADIUM METAL-99.9 MIN. PERCENT REFINED PALLADIUM SPONGE-99.9 MIN. Palladium-bearing materials: Catalysts Chemical Salts Clad Materials Contact Points Dental Alloys Dental Scraps Dental Sweeps Jewelry Scrap (Sweeps) Paste Plated Parts Powders Relays-Electrical Sludges Solutions Wire 11. SCRAP CATEGORIES A. Solution 1. Acid 2. Basic 3. Matrix if known B. Resin C. Sludges D. Burnable MateNal 1. Carbon 2. Filters 3. Film 4. Papers 5. Unprepared Sweeps 6. Others E. Sweeps (Prepared) REFINED PLATINUM METAL-99.9 MIN. PERCENT REFINED PALLADIUM SPONGE-99.9 MIN. PERCENT Platinum bearing materials: Catalysts Chemicals Clad Materials Contacts Dental Alloys Dental Scrap Dental Sweeps, Grindings Jewelry Scrap Jewelry Sweeps Laboratory Ware Magneto Points Powders and Paste Solutions-Plating Spark Plugs-Aircraft Thermocouple Wire Scrap containing combinations of precious metals (gold, silver, platinum and palladium): Assemblies-Components Bullion Carbon Catalysts Chemicals Chips Drillings Electronic Scrap High Temperature Resistant Alloys Paints Paste Powders Relays-Electrical Resins Ribbons Rings Salts Solutions Sweeps Telephone Switching Scrap Thick Film Wire F. Printed Circuit Board 1. Punch Outs ~. 2. Non Assembled 3. Assembled C. Glass to Metal Tubes, ete. 1. Solid Precious Metal Parts 2. Allayed Metal Parts 3. Plated Metal Parts 4. Ceramics 5. Thick film 6. Other... H. Metal Scrap 1. Non-Magnetic 1. Impure Gold 2. Impure Silver 3. Copper Base 4. Aluminum Base 5. Brass Base 6. Bronze Base 7. Molybdenum Base 8. Beryllium Base 9. Lead Base 10. Tin Base 11. Other.... IL Magnetic 1. Kovar Base 2. Stainless Steel Base 3. Iron Base 4. Nickel Base 5. Other.... I. Catalyst 1. Carbon 2. Alumina 3. Rare Earth 4. Silica 5. Other.... ~ ~- -.~ _ "'"` INSTITUTE OFSCRAP RECYCLING INDUSTRIES, INC. " Guidelines for Ferrous Scrap: FS-2007 CODE In EM General Information a. Cleanness. All grades shall be free of dirt, nonferrous met- als, or foreign material of any kind, and excessive rust and cor- rosion. However, the terms "free of dirt, nonferrous metals, or foreign material of any kind" are not intended to preclude the accidental inclusion of negligible amounts where it can be shown that this amount is unavoidable in the customary preparation and handling of the particular grade involved. b. OH-grade material. The inclusion in ashipment of apar- ticulargrade of iron and steel scrap of a negligible amount of metallic material which exceeds to a minor extent the applica- blesize limitations, or which fails to a minor extent to meet the applicable requirements as to quality or kind of material, shall not change the classification of the shipment, provided it can be shown that the inclusion of such off-grade material is unavoidable in the customary preparation and handling of the grade involved. CODE ITEM 204 No. 2 heavy melting steel.' Wrought iron and steel scrap, black and galvanized, maximum size 36 x 18 inches. May include all automo- bile scrap properly prepared. 205 No. 2 heavy melting steel 3 feet x 18 inches. Wrought iron and steel scrap, black and galvanized, maximum size 36 x 18 inches. May include automobile scrap, properly prepared; however, to be free of sheet iron or thin gauged material. 206 No. 2 heavy melting steel 5 feet x t8 inches. Wrought iron and steel scrap, black and galvanized, maximum size 60 z 18 inches. May include automobile scrap, properly prepared; however, to be free of sheet iron or thin gauged material. 207 c. Residual alloys. Wherever the term "free of alloys" is used in the classifications given herein, it shall mean that any alloys contained in the steel are residual and have not been added for the purpose of making an alloy steel. Steel scraps shall be considered free of alloys when the residual alloying elements do not exceed the following percentages: 207A Nickel .45% Molybdenum .10% Chromium .20% Manganese 1.65% The combined residuals other than manganese shall not exceed a total of 0.60 percent. d. Devlatlons. Any deviations from the general classifica- 208 lions of iron and steel scrap may be consummated by mutual agreement between buyer and seller. 200 No.1 heavy melting steel. - Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 24 inches (charging box size) prepared in a manner to insure compact charging. 201 No.1 heavy melting steel 3 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in 209 thickness. Individual pieces not over 36 x 18 inches (charging box size) prepared in a manner to insure compact charging. 202 No.1 heary melting steel 5 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 18 inches (charging box size) prepared in a manner to insure compact charging. 203 No. 2 heavy melting steel.' Wrought iron and steel scrap, black and galvanized, l/8 inch and over in thickness, charging box size to include material not suitable as No. i heavy melting steel. Pre- pared in amanner to insure compact charging. No.1 busheling. Clean steel scrap, not exceeding 12 inches in any dimensions, including new factory busheling (for exam- ple, sheet clippings, stampings, etc.). May not include old auto body and fender stock. Free of metal coated, limed, vitreous enameled, and electrical sheet contain- ing over 0.5 percent silicon. New black sheet clippings. For direct charging, maximum size 8 feet by 18 inches, free of old automobile body and fenderstock, metal coated, lined, vitreous enameled and electrical sheet containing over 0.5 percent silicon. Must lay reason- ablyflat in car. No. t bundles. New black steel sheet scrap, clippings or skeleton scrap, compressed or hand bundled, to charging box size, and weighing not less than 75 pounds per cubic foot. (Hand bundles are tightly secured for handling with a magnet.) May include Stanley balls or mandrel wound bundles or skeleton reels, tightly secured. May include chemically detinned material. May not include old auto body or fender stock. Free of metal coated, limed, vitreous enameled, and electrical sheet contain- ing over 0.5 percent silicon. No. 2 bundles. Old black and galvanized steel sheet scrap, hydraulical- ly compressed to charging box size and weighing not less than 75 pounds per cubic foot. May not include tin or lead-coated material or vitreous enameled material. 210 Shredded scrap. Homogeneous iron and steel scrap, magnetically sepa- rated, originating from automobiles, unprepared No.1 and No. 2 steel, miscellaneous baling and sheet scrap. Average density 50 pounds per cubic foot. 211 Shredded scrap. Homogeneous iron and steel scrap magnetically sepa- rated,originating from automobiles, unprepared No.1 and No. 2 steel, miscellaneous baling and sheet scrap. Average density 70 pounds per cubic foot. - SCRAP SPECIFICATIONS CIRCULAR 2007 , x `,_ ~:- ~..~ - - - ,'.; ~ Guidelines for Ferraris Strap - CODE ITEM 212 Shredded clippings. Shredded 1000 series carbon steel clippings or sheets. Material should have an average tlensity of 60 pounds per cubic foot. 213 Steel can handles. Steel can scrap compressed to charging box size and weighing not less than 75 pounds per cubic foot. Cans may be baled without removal of paper labels, but free of other non-metallics. May include up to 5 gallon tin coated containers. 2i4 No. 3 bundles. Old sheet steel, compressed to charging boz size and weighing not less than 75 pounds per cubic foot. May include all coated ferrous scrap not suitable for inclu- sion in No.2 bundles. 215 Incinerator bundles. Tin can strap, compressed to charging box size and weighing not less than 75 pounds per cubic foot. Processed through a recognized garbageincinerator. 218 Terne plate bundles. New terne plate sheet scrap, clippings or skeleton scrap, compressed or hand bundled, to charging box size, and weighing not less than 75 pounds per cubic foot. (Hand bundles are tightly secured for handling with a magnet.) May include Stanley balls or mandrel wound bundles or skeleton reels, tightly secured. CODE ITEM 223 Iron borings. Clean cast iron or malleable iron borings and drillings, free of steel turnings, scale, lumps or excessive oil. 224 Auto Blahs. Clean automobile slabs, cut 3 feet x 18 inches and under. 22s Auto slabs. Clean automobile slabs, cut 2 feet x 18 inches and under. 226 Briquetted iron borings. Analysis and density to consumer's specifications. 227 Briquetted steel turnings. Analysis and density to consumer's specifications. 228 Mill scale. Dark colored, ranging from blue to black, ferromag- netic iron oxide forming on the surface of steel articles during heating and working. *The identical designations given for these two classifications are in accordance with established industry practices in speci- fyingthe materials desired. Electric Furnace Casting and Foundry Grades 229 217 Bundled No. i steel. Wrought iron and/or steel scrap 1/8 inch or over in thickness, compressed to charging box size and weigh- 230 ing not less than 75 pounds per cubic foot. Free of all metal-coated material. 218 Bundled No. 2 steel. Wrought iron or steel scrap, black or galvanized, l/8 inch and over in thickness, compressed to charging box size and weighing not less than 75 pounds per cubic foot. Auto body and fender stock, burnt or hand stripped, may constitute a maximum of 60 percent by weight. (This percent based on makeup of auto body, chassis, driveshafts, and bumpers.) Free of all coated material, except as found on automobiles. 219 Machine shop turnings. Clean steel or wrought iron turnings, free of iron bor- ings, nonferrous metals in a free state, scale, or exces- sive oil.May not include badly rusted or corroded stock. 220 Machine shop turnings and iron borings. Same as machine shop turnings but including iron bor- ings. 221 Shoveling turnings. Clean short steel or wrought iron turnings, drillings, or screw cuttings. May include any such material whether resulting from crushing, raking, or other processes. Free of springy, bushy, tangled or matted material, lumps, iron borings, nonferrous metals in a free state, grindings, or excessive oil. 222 Shoveling turnings and iron borings. Same as shoveling turnings, but including iron borings. Billet, bloom and forge crops. Billet, bloom, axle, slab, heavy plate and heavy forge crops, containing not over 0.05 percent phosphorus or sulphur and not over 0.5 percent silicon, free from alloys. Dimensions not less than Z inches in thickness, not over 18 inches in width, and not over 36 inches in length. Bar crops and plate scrap. Bar crops, plate scrap, forgings, bits, jars, and tool joints, containing not over 0.05 percent phosphorus or sulphur, not over 0.5 percent silicon, free from alloys. Dimensions not less than'/z inch in thickness, not over 18 inches in width, and not over 36 inches in length. 231 Plate and structural steel, 5 feet and under. Cut structural and plate scrap, 5 feet and under. Clean open hearth steel plates, structural shapes, crop ends, shearings, or broken steel tires. Dimensions not less than'/< inch thickness, not over 5 feet in length and 18 inches in width. Phosphorus or sulphur not over 0.05 percent. 232 Plate and structural steel, 5 feet and under. Cut structural and plate scrap, 5 feet and under. Clean open hearth steel plates, structural shapes, crop ends, shearings, or broken steel tires. Dimensions not less than''/a inch thickness, not over 5 feet in length and 24 inches in width. Phosphorus or sulphur not over 0.05 percent. 233 Cast steel. Steel castings not over 48 inches long or 18 inches wide, and'/cinch and over in thickness, containing not over 0.05 percent phosphorus or sulphur, free from alloys and attachments. May include heads, gates, and risers. 234 Punchings and plate scrap. Punchings or stampings, plate scrap, and bar crops containing not over 0.05 percent phosphorous or sul- phurand not over 0.5 percent silicon, free from alloys. LODE' ITEM All materials cut 12 inches and under, and with the exception of punchings or stampings, at least 1/8 inch in thickness. Punchings or stampings under 6 inches in diameter may be any gauge. 235 Electric furnace bundles. New black steel sheet scrap hydraulically compressed into bundles of size and weight as specified by con- Sumer. 236 Cut structural and plate scrap, 3 feet and under. Clean open hearth steel plates, structural shapes, crop ends, shearings, or broken steel tires. Dimensions not less than 1/4 inch in thickness, not over 3 feet in length and 18 inches in width. Phosphorus or sulphur not over 0.05 percent. 237 Cut structural and plate scrap, 2 feet and under. Same as tut structural and plate scrap, 3 feet and under, except for length. 238 Cut structural and plate scrap,l foot and under. Same as cut structural and plate scrap;'3 feet and under, except for length. 239 Silicon busheling. Clean silicon bearing steel scrap, not exceeding 12 inch- es inany dimension, including new factory busheling (for example, sheet clippings, stampings, etc.), having a silicon content of 0.05 percent to 5.0 percent. 240 Silicon Clippings. Clean steel scrap, including new factory busheling (for example, sheet clippings, stampings, etc.), may not include old auto body and fender stock. Free of metal coated, limed, vitreous enameled, and electrical sheet containing minimum 1 percent silicon. 241 Chargeahleingots andingot butts. Chargeable ingots and ingot butts for material to be suitable and acceptable to the consumer containing not over 0.05 percent phosphorus or sulphur and not over 0.05 percent silicon free of alloys. 242 Foundry steel, 2 feet and under. Steel scrap 7/8 inch and over in thickness, not over 2 feet in length or 18 inches in width. Individual pieces free from attachments. May not include nonferrous metals, cast or malleable iron, cable, vitreous enam- eled, ormetal coated material. 243 Foundry steel, l toot and under. Same specifications as 2-(oot material, except for length. CODE ITEM taining not more than 0.05 percent phosphorus or sul- phur,and free of alloys. 247 Alloy free machine shop turnings. Clean steel turnings, free of iron borings or excessive oil, containing not more than 0.05 percent phosphorus or sulphur, and free of alloys. May not include badly rusted or corroded stock. 248 Hard steel cut 30 inches and under. Automotive steel consisting of rear ends, crankshafts, driveshafts, front axles, springs, and gears prepared 30 inches and under. May not include miscellaneous small shoveling steel or any pieces too bulky for gray iron foundry use. 249 Chargeable slab crops. Chargeable slab crops for material to be suitable and acceptable to the consumer containing not over 0.05 percent phosphorus and 0.05 percent sulphur and not over 0.05 percent silicon and free of alloys. 250 silicon bundles. - Silicon sheet scrap, clippings or skeleton scrap, com- pressed or hand bundled, to charging box size, and weighing not less than 75 pounds per cubic foot, hav- ing asilicon content of 0.50 percent to 5.0 percent. 251 Heavy turnings. Short, heavy steel turnings, containing not over 0.05 percent phosphorus or sulphur and free of alloys. May include rail chips. May not include machine shop or other light turnings and must weigh not less than 75 pounds per cubic foot in the original state of produc- tion. Specially Processed Grades to Meet Consumer Requirements Grades of scrap prepared especially to meet with steel mill or foundry requirements, individual specifications to be agreed on between consumer and supplier. Cast Iron Grades 252 Cupola cast. Clean cast iron scrap such as columns, pipes, plates, and castings of a miscellaneous nature, including auto- mobile blocks and cast iron parts of agricultural and other machinery. Free from stove plate, burnt iron, brake shoes or foreign material. Cupola size, not over 24 inches x 30 inches, and no piece over 750 pounds in weight. 244 Springs and crankshafts. 253 Clean automotive springs and crankshafts, either new or used. 245 Alloy free turnings. Clean shoveling steel turnings free from lumps, tan- gled or matted material, iron borings, or excessive oil 254 containing not more than 0.05 percent phosphorus or sulphur, and free of alloys. 246 Alloy free short shoveling steel turnings. Clean shoveling steel turnings, free of lumps, tangled or matted material, iron borings, or excessive oil, con- Charging box cast. Clean cast iron scrap in sizes not over 60 inches in length or 30 inches in width, suitable for charging into an open hearth furnace without further preparation. Free from burnt iron, brake shoes, or stove plate. Heavy breakable cast. Cast iron scrap over charging box size or weighing more than 500 pounds. May include cylinders and driving wheel centers. May include steel which does not exceed 10 percent of the casting by weight. 255 Hammer block or bases. Cast iron hammer blocks or bases. LODE ITEM 256 Burnt iron. Burnt cast iron scrap, such as stove parts, grate bars, and miscellaneous burnt iron. May include sash weights or window weights. 25T Mixed cast. May include all grades of cast iron except burnt iron. Dimensions not over 24 inches x 30 inches and no piece over 150 pounds in weight. 256 Stove Dlate, clean cast iron stove. Free from malleable and steel parts, window weights, plow points, or burnt cast iron. 259 Clean auto cast. Clean auto blocks; free of all steel parts except camshafts, valves, valve springs, and studs. Free of nonferrous and non-metallic parts. 260 Unstrapped motor blocks. Automobile or truck motors from which steel and non- ferrous fittings may or may not have been removed. Free from driveshafts and all parts of frames. 261 Drop broken machinery cast. Clean heavy cast iron machinery scrap that has been broken under a drop. All pieces must be of cupola size, not over 24 inches x 30 inches, and no piece over 150 pounds in weight. 262 Clean auto cast, broken, not degreased. Clean auto blocks, free of all steel parts except camshafts, valves, valve springs and studs. Free of nonferrous and non-metallic parts, and must be bro- ken to cupola size, 150 pounds or less. 263 Clean auto cast, degreased. Free of all steel parts except camshafts, valves, valve springs, and studs. Free of nonferrous and non-metallic parts, and must be broken into cupola size, 150 pounds or less. 264 Malleable. Malleable parts of automobiles, railroad cars, locomo- tives, or miscellaneous malleable iron castings. Free from cast iron and steel parts and other foreign mate- rial. 265 Broken ingot molds and stools. Broken ingot molds and stools, cast iron, maximum size 2 feet x 3 feet x 5 feet. 266 Unbroken ingot molds and stools. Unbroken ingot molds and stools, cast iron. Special Boring Grades 267 No.l chemical borings. New clean cast or malleable iron borings and drillings containing not more than 1 percent oil, free from steel turnings, or chips, lumps, scale, corroded or rusty material. 268 Briquetted cast Iron borings, hot process. Cast iron borings, heated, briquetted, to a density of approximately 85 percent, oil and water content under 1 percent. CODE ITEM 269 Briquetted cast Iron borings, cold process. Cast iron boring briquettes, free of steel and nonfer- rous material, hydraulically compressed into a cohe- sive solid, reasonably free of oil, and having a density of not less than 60 percent. 270 Malleable borings. Clean malleable iron borings and drillings, free of steel turnings, scale, lumps and excessive oil. 271 No. 2 chemical borings. New clean cast or malleable iron borings and drillings, containing not more than 1.5 percent oil, free from steel turnings, or chips, lumps, scale, corroded or rusty material. Steel From Scrap Tires General Guidelines Items not covered in the specifications, and any variations in the specification, are subject to special arrangement between buyer and seller. Percentages listed below are by weight. Preparation Consumer and supplier to agree upon preparation for trans- port,such as the fallowing: Loose-Whole. Loose-Chopped. If wire is chopped or shredded, parties may wish to specify the means of processing and/or characteristics of the final product (density, length of pieces, etc.). Baled. Bales of wire should maintain their form during loading, shipment, unloading, storage, and handling typical of that done at a consuming facility, unless otherwise specified.. Baled-High Density. Hydraulically compressed, no dimension larger than 24", density of at least 75 pounds per square foot. Baled-HRB/Low Density. Density of less than 75 pounds per square foot. Each bale secured with sufficient number of bale ties drawn tight to insure a satisfactory delivery. Other Means of Preparation. Individual specifications to be agreed upon between consumer and supplier. 272 Pulled bead wire (Truck)-Grade 1. Not chopped; made up of loops of wire. Less than five percent (<5%) rubber/fiber. 273 Pulled bead wire (Truck)-Grade 2. Not chopped; made up of loops of wire. Five to ten per- cent (6-10%) rubber/fiber. 274 Pulled bead wire (Truck)-Grade 3. Not chopped; made up of loops of wire. Greater than ten percent (>10%) rubber/fiber. 275 Pulled bead wire (Passenger)-Grade 1. Not chopped; made up of loops of wire. Less than five percent (<B%) rubber/fiber. 276 Pulled bead wire (Passenger)-Grade 2. Not chopped; made up of loops of wire. Five to ten per- cent (5-10%) rubber/fiber. v.. _ Gmdehne f rFerrouS Scrap ;=-` INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC.,: CDDE ITEM 277 Pulled bead wire (Passenger)-Grade 3. Not chopped; made up of loops of wire. Greater than ten percent (>10%) rubber/fiber. 278 Processed fire wire (Ferrous)-Grade 1. Chopped. Less than two percent (2%) rubber/fiber. 279 Processed fire wire (Ferrous)-Grade 2. Chopped. Less than five percent (<5%) rubber/fiber. 280 Processed fire wire (Ferrous)-Grade 3. Chopped. Five to ten percent (5-10%) rubber/fiber. 281 Processed fire wire (Ferrous)-Grade 4. Chopped. Ten to twenty percent (10-20%) rubber/fiber. 282 Processed fire wire (Ferrous)-Grade 5. Chopped. Greater than twenty percent (>20%) rubber/fiber. Railroad Ferrous Scrap* Specifications of Association of American Railroads promul- gated by i[s Purchases and Materials Management Division (Revised 7973) (2) Axles, Steel. Solid car and/or locomotive friction bearing, 8 inch diameter and under (free of axles with key-way between wheel seats, no axles of shorter lengths than distance between wheel seats to be included). (2A) Axles, Steel. Solid car and/or locomotive friction bearing over 8 inch diameter (free of axles with key-way between wheel seats, no axles of shorter length than distance between wheel seats to be included). (3) Axles, Steel. Roller bearing 8 inch diameter and under (no axles of (24) shorter lengths than distance between wheel seats to be included). (3A) Axles, Steel. Roller bearing over 8 inch diameter (no axles of short- erlength than distance between wheel seats to be included). (27) (4) Spikes, Track Bolts and Nuts, and Lock Washers, may include Rail Anchors. (S) Tie Plates. Steel. (6) Rail Joints, Angle and/or Splice Bars. Steel. (9) Bolsters and/or Truck Sides, Frames: Uncut. Cast steel. (11) Cast Steel, No. 2. Steel castings, over 18 inches wide and/or over 5 feet long. (11A) Last Steel, No. 1. Steel castings, l8 inches and under, not over 5 feet long, including cut truck side frames and bolsters. CODE ITEM (12) Cast Iron, No. 1. Cast iron scrap, such as columns, pipes, plates, and/or castings of miscellaneous nature, but free from stove plates, brake shoes, and burnt scrap. Must be cupola size, not over 24 x 30 inches in dimension and no piece to weigh over 150 pounds. Must be free from foreign material. (13) Cast Iron, No. 2. Pieces weighing over 150 pounds, but not more than 500 pounds. Free from burnt cast. (14) Cast Iron, No. 3. Pieces weighing over 500 pounds; includes cylinders, driving wheel centers and/or all other castings. (free from hammer blocks or bases.) (15I Cast Iron, No. 4. Burnt cast iron scrap, such as grate bars, stove parts and/or miscellaneous burnt scrap. (16) Cast Iron Brake Shoes. Brakes shoes of all types except composition-filled shoes. (17) Couplers and/or Knuckles. Railroad car and/or locomotive steel couplers, knuckles and/or locks stripped clean of all other attachments. (18) Frogs and/or Switches, uncut. Steel frogs and switches that have not been cut apart, exclusive of manganese. (18A) Raflbound Manganese Frogs and Switch Points with manganese inserts that have not keen cut apart. (23) Malleable. Malleable parts of automobiles, railroatl cars, locomo- tiveand/or miscellaneous malleable castings. Melting Steel, Railroad No. i. Clean wrought iron or steel scrap,'/4 inch and over in thickness, not over 18 inches in width, and not over 5 feet in length. May include pipe ends and material 1/8 inch to'/n inch in thickness, not over 15 inches x 15 inches. Individual pieces cut so as to lie reasonably flat in charging box. Rail, Steel No. 1. Standard section tee rails, original weight 50 pounds per yard or heavier, l0 feet long and over. Suitable for rerollinq into bars and shapes. Free from bent and twisted rails, frog, switch, and guard rails, or rails with split heads and broken flanges. Continuous welded rail maY be included provided no weld is over 9 inches from the end of the piece of rail. (28A) Rail, Steel No. 2 Cropped Rail Ends. Standard section, original weight of 50 pounds per yard and over, l8 inches long and under. (28B) Rail, Steel No. 2 Cropped Rail Ends. Standard section, original weightof 50 pounds per yard and over, 2 feet long and under. (28C) Rail, Steel Na. 2 Cropped Rail Ends. Standard section, original weight 50 pounds per yard and over, 3 feet long and under. r ~ SCRAP SPECIFICATIONS~CIRCULAR,2007 -. .~- a -_ -':~. Guidelines far Ferrous SCrap~ COnE ITEM (29) Rail, Steel No. 3. Standard section tee, girder, and/or guard rails, to be free from frog and switch rails not cut apart, and con- tain no manganese, cast, welds, or attachments of any kind except angle bars. Free from concrete, dirt, and foreign material of any kind. COaE ITEM (36) Tires. All locomotive, not cut to specified lengths. (38) (30) Sheet Scrap, No. t. Under'/is inch thick, may include hoops, band iron and/or steel, scoops and/or shovels (free of wood). Must be free from burnt or metal coated material, (38A) cushion, or other similar springs. (31) Sheet Scrap. No. 2. Galvanized or tinned material and/or gas retorts, (40) and/or any other iron or steel material not otherwise classified. (32) Steel, Tool. (Specify kind in offering.) (33) Steel, Manganese. All kinds of manganese, rail, guard rails, frogs and/or switch points, cut or uncut. (34) Steel, Spring. Coil and/or elliptical, minimum thickness'/4 inch, may be assembled or cut apart. (34A) Steel, Spring. Coil only. Turnings. No. 1. Heavy turnings from wrought iron and/or steel railroad axles or heavy forgings and/or rail chips, to weigh not less than 75 pounds per cubic foot. Free from dirt or other foreign material of any kind. Alloy steel scrap may be excluded from these specifications by mutual agreement between buyer and seller. Turnings, Drillings and/or Borings. No. 2. Cast, wrought, steel and/or malleable iron borings, turnings and/or drillings mixed with other metals. Wheels, No. 1. Cast iron car wheels. (42) Wheels, No. 3. Solid cast steel, forged, pressed and/or rolled steel car and/or locomotive wheels, not over 42 inches diame- ter. (Specify kind in offering.) (45) Destroyed Steel Cars. Bodies of steel cars cut apart sufficiently to load. (Specify kind.) (45A) Destroyed Steel Car Sides and Box Car Roofs. Cut to a maximum length of... and a maximum width of... suitable for use in super presses and shears with- out additional preparation. (35) Structural, Wrought Iron and/or Steel Uncut. All steel or steel mixed with iron from bridges, strut- *Specifications in force as of publication tlafe. tures and/or equipment that has not been cut apart, may include uncut bolsters, brakebeams, steel trucks, underframes, channel bars, steel bridge plates, frog and/or crossing plates and/or other steel of similar character. ~ - INSTITUTE OF SCRAP RECYCLING INDUSTRIES`INC. -° _ _ _ __ _ Guidelines for Glass Gullet: GC-2007 Container Glass Cutlet Specifications Preamble These standards and practices apply to container glass cutlet for purchase or sale in the United States and Canada. Transac- tions covering shipments to or from other countries may also be in accordance with these standards and practices and may be modified by mutual agreement between buyer and seller. These specifications are guidelines for buying and selling con- tainerglass cutlet and always subject to the buyer and seller's agreement. 5. Terms Terms shall be "net cash 30 days after date of shipment" unless otherwise agreed upon. Arbitration In the event of a total disagreement between buyer and seller, the dispute should be submitted to ISRI arbitration. In all cases, the cost of arbitration shall be borne by the party found to beat fault, or split in the event of compromise, as determined by the arbitrators. Scrap Glass Definitions Container Glass Gullet: crushed or whole scrap soda-lime-silica container glass. Unprocessed Container Glass Gullet: broken or whole scrap glass containers that comply with the proper ISRI glass specifications. Processed (Furnace Ready) Container Glass Gullet: crushed and whole contaminate-free scrap container glass that com- plies with the proper ISRI glass specifications. Organic Matter: consists of organic materials that are non- containerglass items; for example, paper labels should not exceed 0.2%. Ferrous Materials: are magnetic metals, i.e. steel, iron, etc., and therefore must be removed during scrap glass processing. Non-ferrous Materials: are non-magnetic metals, i.e. alu- minum, lead, copper, etc., and therefore must be removed dur- ingglass processing. The Purchase Agreement Each transaction covering the purchase or sale of container glass cutlet should be confirmed in writing and include agree- ment on the following items: 1. Product Where possible, each container glass cutlet grade shall be specified in accordance with the grade as defined. 2. Quantity Where possible, the quantity shall always be specified in terms of a definite number of tons of 2,000 pounds each. A. If the quantity is specified in tons, the order shall be consid- ered completed when aggregate shipments are 5% under or over the quantity ordered. B. If the quantity is specified in carloads or truckloads, a "load" shall be defined as a truck, trailer,-or railroad car loaded to full visible capacity not to exceed established legal weight limits. 3.Packaginq It should be stated whether shipped units are to be in boxes, or in bulk by railroad car, truck, or trailer. Where possible, approxi- mate weights should be specified. 4. Price Units The price agreed upon shall be clearly stated in US dollars and cents per 2,000 pounds or in US dollars and cents per hundred weight. UNPROCESSED FLINT CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime silica beverage or food container glass. Gullet Colors Seqreqation: Flint Gullet Flint 95-100% Amber 0-5% Green 0-5% Other Colors 0-5% Size: Gullet may be broken but not pulverized. Moisture: Gullet should be free of excess moisture. Contaminant Listings: OutthrowMaterials: Normal container labels; ring and metal closures where processing capabilities permit. Prohibitive Materials: Non acceptable items include non-con- tainerglass (vision ware, light bulbs, crystal, windows, mirrors, drinking glasses, ceramic, milk glass, etc.) metals, ores, miner- als, bricks, clay, grinding and refractory materials, rocks, clay and ceramic closures. General: The quality of the unprocessed flint container glass cutlet must be such that after beneficiation with aconvention- alcontainer glass Gullet processor it will be suitable for the pro- duction of glass containers. UNPROCESSED AMBER CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime silica beverage or food container glass. Gullet Colors Seqreqation: Amber Gullet Amber 90-100% Flint 0-5% Green 0-5% Other Colors 0-5% Size: Gullet may be broken but not pulverized. Moisture: Gullet should be free of excess moisture. Contaminant Listings: Outthrow Materials: Normal container labels; ring and metal closures where processing capabilities permit. Prohibitive Materials: Non-acceptable items include non-con- tainerglass (vision ware, light bulbs, crystal, windows, mirrors, drinking glasses, ceramic, milk glass, etc.) metals, ores, miner- als, bricks, clay, grinding and refractory materials, rocks, clay and ceramic closures. ._ '. SCRAP SPECIFICATIONS{IRCULAR 2007 ~ _ ,:: . - - GUId¢II¢¢s (¢t GI¢55 Gullet ~f General: The quality of the unprocessed amber container glass cullet must be such that after beneficiation with aconvention- alcontainer glass cullet processor it will be suitable for the pro- duction of glass containers. PROCESSED (FURNACE READY) AMBER CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime silica container glass Container Glass Gullet Colors Segregation: Amber Gullet UNPROCESSED GREEN CONTAINER GLASS GULLET SPECIFICATIONS Composition: soda-lime-silica beverage or food container glass. Gullet Colors Segregation: Green Cutlet Green 90-100% Flint 0-10% Amber 0-10% Other Colors 0-5% Size: Gullet may be broken but not pulverized. Moisture: Gullet should be free of excess moisture. Contaminant Listings: Outthrow Materials: Normal container labels; ring and metal closures where processing capabilities permit. Prohibitive Materials: Non-acceptable items include non-con- tainerglass (vision ware, light bulbs, crystal, windows, mirrors, drinking glasses, ceramic, milk glass, etc:) metals, ores, miner- als, bricks, clay, grinding and refractory materials, rocks, clay and ceramic closures. General: The quality of the unprocessed green container glass cullet must be such that after beneficiation with a convention- al container glass cullet processor it will be suitable for the pro- duction ofglass containers. PROCESSED (FURNACE READY) FLINT CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime silica container glass. Container Glass Gullet Colors Segregation: Flint Gullet Flint 95-100% Amber 0-5% Green 0-t% Other Colors 0-.5% Total NON-Flint Gullet = <S% Size: Various sizes from whole glass containers to -100 Mesh. However, the ideal material size is 3/8" to 3/4" with a 10% mini- mum of fine particles. Material size is based upon buyer and seller's agreement. Contaminant Llstings: Oufthrow Materials: Organic Matter, allowable percentage based upon buyer and seller's agreement. Prohibitive Materials: ferrous Metals Nonferrous Metals Ceramics (such as cups, saucers, dinnerware, pottery, etc.) Other Glass (for example, plate window glass, heat-resist- ant glass-such as Pyrex-and lead-based glass-such as crystal ware, television tubes, vision ware, etc.) Other Materials (such as bricks, rocks, etc.) Amber 90-100% Flint 0-10°/a Green 0-10% Other Colors 0-5% Total NON-Amber Gullet= QO% Size: Various sizes from whole glass containers to -100 Mesh. However, the ideal material size is 3/8" to 3/4" with a 10% mini- mum of fine particles. Material size is based upon buyer and seller's agreement. Contaminant Llstings: Outthrow Materials: Organic Matter, allowable percentage based upon buyer and seller's agreement. Prohibitive Materials: Ferrous Metals Nonferrous Metals Ceramics (such as cups, saucers, dinnerware, pottery, etc.) Other Glass (for example, plate window glass, heat-resist- ant glass-such as Pyrex-and lead-based glass-such as crystal ware, television tubes, vision ware, etc.) Other Materials (such as bricks, rocks, etc.) PROCESSED (FURNACE READY) GREEN CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime-silica container glass Container Glass Gullet Colors Segregation: Green Gullet Green 70-100% Flint 0-15% Amber 0-15°h Other Colors 0-10% Total NON-Green Gullet= <30% The color green typically consists of a variety of shades, for example: emerald green or lime green. Size: Various sizes from whole glass containers to -100 Mesh. However, the ideal material size is 3/8" to 3/4" with a 10% mini- mum offine particles. Material size is based upon buyer and seller's agreement. Contaminant Listings: Ou[throw Materials: Organic Matter, allowable percentage based upon buyer and seller's agreement. Prohibitive Materials: Ferrous Metals Nonferrous Metals Ceramics (such as cups, saucers, dinnerware, pottery, etc.) Other Glass (for example, plate window glass, heat-resist- ant glass-such as Pyrex-and lead based glass-such as crystal ware, television tubes, vision ware, etc.) Other Materials (such as bricks, rocks, etc.) ~,..~ INSTITUTE'OF'SCRAI? RECYCLING~INDUSTRIES, INC. " Guidelines for Paper Stock: PS-2007-Domestic Transactions Paper Stock: Domestic Transactions Preamble These standards and practices apply to paper stock for repulp- ing only and are for use in the United States, Canada, and Mex- ico. Transactions maybe modified by mutual agreement between Buyer and Seller. Basle to the Success of any Buyer-Seller Relationship Is an Atmosphere of "Good Fakh." In keeping with this, the following principles have been estab- lished: 1. Seller must use due diligence to ascertain that shipments consist of properly packed paper stock and that shipments are made during the period specified. 2. Arbitrary deductions, cancellations and/or rejections by the Buyer are counter to acceptable good trade practices. 3. Seller shall provide the quality of paper stock agreed upon but shall not be responsible for the use of the paper stork or of the manufactured product. I. The Purchase Agreement Each transaction covering the purchase or sale of paper stock shall be confirmed in writing and include agreement on the fol- lowing items: t. Quantity Where possible, the quantity shall always be specified in terms of a definite number of short tons of 2,000 lbs. each or metric tonnes of 2,204.6 pounds each. a. When the quantity is specified in tons or tonnes, the order shall be considered completed when aggregate shipments are 5% under or over the quantity ordered. b. When the quantity is specified in carloads or truck- loads, a "load" shall be defined as a truck, trailer, or railcar loaded to full visible capacity not.to exceed established legal weight limits. c. The Buyer and Seller may establish minimum carload and/or truckload weights. 2. Grades Where possible, each grade purchased shall be specified in accordance with the grade as defined in SECTION VI herein. 3. Packing Unit type, i.e.: bales, skids, rolls, pallets, boxes, securely tied bundles or loose should be specified. 4. Pricing and Terms The agreed price and payment terms shall be clearly stat- ed. 5. Shlpplnq Terms Shipping terms shall be indicated with the use of phrases such as "f.o.b. shipping point" or "f.o.b. delivered:' 6. Shlpplnq Instructions Shipping instructions should clearly specify shipping schedule, route, carrier and destination. 7. Shlpplnq Period The shipping period shall be understood to be within the same calendar month of the date of the order unless oth- erwisespecified. II. Fulfillment by the Seller The practice of the Seller shall be in accordance with the fol- lowing: 1. Acceptance All orders shall be confirmed in writing. 2. Grading Paper stock sold under the grade names appearing in SECTION VI shall conform to those grading definitions. 3. Baling Each bale must be secured with a sufficient number of bale ties drawn tight to ensure a satisfactory delivery. 4. Tare If agreed to by the Buyer, sides and headers may be used to make a satisfactory delivery of the bales but must not be excessive. The weight of skids, Gaylord boxes and other similar materials shall be deducted from the gross invoice weight. 5. Loading Paper stock shall be loaded as follows: a. Before they are loaded, railcars and trucks shall be free from objectionable materials and odors, and shall have sound floors and doors. b. All loads should consist entirely of one grade of paper stock unless otherwise agreed to. When two or more grades are included in the same load, units of each grade should be kept together in a separate part of the railcar or truck. c. Paper stock must be loaded in a manner that will mini- mize shifting and breakage. Excessive breakage due to improper loading can be cause for rejection. d. Paper stock shall be loaded in accordance with indus- try safety best practices. Please refer to the following guide for valuable safety information: http://www.isri.org/safeshipping 6. Shipping Notice/BIII of Ladlnq Shipping 6 y Truck A bill of lading or shipping notice shall accompany each shipment to the Buyer and should include the following: a. Date of shipment b. Release number (if applicable) Paper Stock Industries A NATIONAL CHAPTER OF THE INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. 15CRAP SPECIFICATIONS kIRCULAR 2007 Paper Stock Ddmeshc Transadians c. Number of bales/rolls d. Grade of paper e. Name of trucking company, trailer number and driver's signature f. Shipper's signature Sbippinq by Rail When shipping by railcar, a bill of lading with shipping instructions shall be provided to the railroad and to the Buyer immediately upon release of the railcar and these documents should include the following: a. Acceptable Loads (i.e. quality of paper stock, weight, bale integrity, moisture, order quantity, etc.) if the shipment appears to be in accordance with the order, the shipping notice and other parame- ters as established between the Buyer and the Seller, the Buyer shall proceed with the unloading and shall provide the Seller with the receiving weights within three business days of unloading. b. Unacceptable Loads (i.e. quality of paper stock, weight, bale integrity, moisture, order quantity, etc.) a. Date of shipment b. Release number (if applicable) c. Number of bales/rolls d. Grade of paper e. Car number f. Weighing instructions g. Routing ,. h. Destination i. Shipper's signature 7. Invoicing Invoices, if required, should conform to instructions an the order and include the following data: a. Date of shipment b. Railcar or truck number c. Customer's order number d. Release Number (if applicable) e. Shipper's invoice number f. FOB point g. Number of units (bales, rolls, skids etc.) h. Weight and grade i. Price and extension j. Payment terms 8. Rejection When notified of a rejection, the Seller must, within two business days, advise the Buyer as to which of the follow- ing procedures the Seller has decided upon: a. Agree with the Buyer to a compromise acceptance and settlement. b. Inspect the quality of the rejected material. The inspection and final disposition by the Seller shall take place within three business days of the notification. By mutual agreement, this time limit may be exceeded. c. Order reshipment of the material. d. Request that the Buyer agree to submit the rejected shipment to arbitration. III. Fulfillment by the Buyer The practice of the Buyer shall be in accordance with the fol- lowing: Upon receipt of the shipment, the Buyer is to make all possible effort to inspect the contents while it is still loaded. if the shipment does not appear to be in accor- dance with the order, the shipping notice or any other parameters as established between the Buy- erand the Seller, the Buyer shall Immediately noti- fythe Seller. the Buyer shall set aside any portion of the ship- mentthat is controversial and take reasonable care to protect that paper stock from any external deterioration or contamination until the final dis- position of that shipment is determined. Buyer has 21 days to downgrade or reject if the Buyer, at any time with 21 calendar days after receipt of a shipment, finds objectionable materials heretofore not visible, the Buyer shall have the right to downgrade or reject the paper stock and shall immediately notify the Seller The Seller will then determine the final disposition of the shipment. in the event of a rejection, the Buyer shall be responsible for any paper stock used by the Buyer, and the attendant freight, other than such quanti- ty as may be considered reasonable for laboratory sampling or testing purposes. IV. Miscellaneous Practices 1. Ownership a. If the shipment is purchased "f.o.b. shipping point" and is in accordance with the agreement covering the transaction, it becomes the property of the Buyer when loaded on the transportation vehicle. b. If the shipment is purchased on a "delivered destina- tion" basis and is in accordance with the agreement covering the transaction, it remains the property of the Seller until it is delivered to the Buyer by carrier. c. If the shipment is purchased on an "f.o.b. shipping point-specified freight allowed" basis and is in accor- dance with the agreement covering the transaction, it becomes the property of the Buyer when loaded on the transportation vehicle. 2. Demurrage Charges a- Any demurrage accrued on a shipment due to the fail- ure of the Seller to ship in accordance with the order, except with respect to quality, is the liability of the Seller. b. In the event that a rejection for quality stands, any demurrage accruing on the shipment prior to notifica- tion to the Seller shall be the Buyer's liability. In the event that negotiation of a substantiated rejec- tionfor quality results in agreement by the Buyer to accept the shipment, then only the demurrage, follow- ing notification of rejection-and including 24 hours. after the agreement-becomes the liability of the Seller. Demurrage accruing prior to and including the day of notification becomes the liability of the Buyer. 3. Carrier Selection a. F0.6. Shipping Point. Selection of the carrier is at the discretion of the Buyer unless otherwise agreed. b. FO.B. Delivered. Selection of the carrier is at the dis- cretion of the Seller unless otherwise agreed. Should the Buyer specify a carrier or routing which results in a freight cost higher than would have occurred had the Seller selected the carrier or routing, the difference shall be charged to the Buyer. c. Any extra switching or excess freight charges accruing on a shipment due to the failure to the Seller to pro- tect the agreed upon minimum rail rate or to ship in accordance with the agreement, is the liability of the Seller. 4. Weight Discrepancies No debits, credits or adjustments shall be issued on any shipment of paper stock when the weight variation is 1% or less. In the event that a discrepancy exceeds those parameters mentioned above as "allowable;'the Buyer and Seller shall exchange copies of unloading and loading records showing individual bale weights. In the event that both parties have such records, and errors cannot be determined, it is rer ommended that the weight closest to the public carrier's scale weigh[ be assumed to be correct. In the absence of such records on the part of one of the parties, the records of the other party shall govern. 5. Moisture content a. All paper must be packed air dry. Where excess moisture is present in the shipment, the Buyer has the right to request an adjustment and if a settlement cannot be reached, the Buyer has the right to reject the shipment. 6. Replacement of Shipment a. In the event that any shipment is rejected due to quality: Whether or not the shipment is to be replaced is to be decided by mutual agreement between Buyer and Seller. 7. Promptness of Shlpment In the event that shipments are postponed: a. On instructions of the BUYER, the Seller shall have the option of extending the time limit of the order by the same number of days of the postponement, or of can- celing that portion of the order on which shipment was postponed. Seller shall promptly notify Buyer of option selected. b. On the instructions of the SELLER, the Buyer shall have the option of extending the time limit of the order by the same number of days of the postponement, or of canceling that portion of the order on which ship- ment was postponed. Buyer shall promptly notify Sell- er of option selected. V. Arbitration 1. In the event of a total disagreement between Buyer and Seller, the dispute should be submitted to ISRI arbitration. 2. In all cases, the cost of arbitration shall be borne by the party found to beat fault, or split in the event of compro- mise, as determined by the arbitrators. VI. Grade Definitions The definitions which follow describe grades as they should be sorted and packed. CONSIDERATION SHOULD BE GIVEN TO THE FACT THAT PAPER STOCK AS SUCH IS A SECONDARY MATERIAL PRODUCED MANUALLY AND MAY NOT BE TECH- NICALLY PERFECT. Definitions may not specifically address all types of processes used in the manufacture or recycling of paper products. Specific requirements should be discussed between Buyer and Seller during negotiations. Outthrows The term "Outthrows" as used throughout this section is defined as "all papers that are so manufactured or treated or are in such a form as to be unsuitable far consumption as the grade specified:' Prohibitive Materials The term "Prohibitive Materials" as used throughout this sec- tion is defined as: a. Any materials which by their presence in a packing of paper stock, in excess of the amount allowed, will make the packaging unusable as the grade specified. b. Any materials that may be damaging to equipment. Note: The maximum quantity of "Outthrows'"indicated in con- nection with the following grade definitions is understood to be the TOTAL of "Outthrows" and "Prohibitive Materials:" A material can be classified as an "Outthrow" in one grade and as a "Prohibitive Material" in another grade. Carbon paper, for instance, is "UNSUITABLE" in Mixed Paper and is, therefore, classified as an "Outthrow," whereas it is "UNUSABLE" in White Ledger and in this case is classified as a "Prohibitive Material." Glossary of Terms A supplemental glossary of paper stock terms is located on page 53. The purpose of this limited list of terms is to help the user better understand specific grade definitions contained within this Circular. (t) Residential Mixed Paper Consists of a mixture of various qualities of paper not limited as to type of fiber content, normally generated from residen- tial, multi material collection programs. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed 5% (2) Soft Mixed Paper Consists of a clean, sorted mixture of various qualities of paper not limited as to type of fiber content. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed B% °°SCRAP SPECIFICATIONS.CIRCULAR.2007 ~~ - -.---Paper Stock Dameshc Transactions (3) Hard Mlxed Paper (HMP) Consists of a clean, sorted mixture of various qualities of paper containing less than 10%grountlwood content. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 3% (41 Boxboard Cuttings Consists of new cuttings of paperboard used in the manufac- ture of folding cartons, set-up boxes and similar boxboard products. Prohibitive Materials may not exceed '/z of i% Total Outthrows may not exceed 2% (5I Mill Wrappers Consists of paper used as outside wrap for rolls, bundles, or skids of finished paper. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 3% (6) News Consists of newspaper as typically generated from news drives and curbside collections. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (7) News, De-ink Quality (tt7 ONP) Consists of sorted, fresh newspapers, not sunburned, contain- ingnot more than the normal percentage of rotogravure and colored sections. May contain magazines. Prohibitive Materials None permitted Total Outthrows may not exceed '/a of 1% (8) Special News, De-ink Quality (ti8 ONP) Consists of sorted, fresh newspapers, not sunburned tree from magazines, white blank, pressroom over-issues, and paper other than news, containing not more than the normal percentage of rotogravure and colored sections. This grademust be tare-free. Prohibitive Materials None permitted Total Outthrows may not exceed '/a of 1% (9) Over-Issue News (01 or OIN) Consists of unused, overrun newspapers printed on newsprint, containing not more than the normal percentage of rotogravure and colored sections. Prohibitive Materials None permitted Total Outthrows None permitted (10) Magazines (OMG) Consists of coated magazines, catalogues, and similar printed materials. May contain a small percentage of uncoated news- type paper. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 3% Prohibitive Materials may not exceetl '/z of 1% Total Outthrows may not exceed 2% (13) New Double-Lined Kraft Corrugated Cuttings (DLK) Consists of new corrugated cuttings having liners of either test liner,jute, or kraft. Treated medium or liners, insoluble adhe- sives, butt rolls, slabbed or hogged medium, are not acceptable in this grade. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (14) Fiber Cores Consists of paper cores made from either chipboard and/or liner- board,single or multiple plies. Metal or plastic end caps, wood plugs, and textile residues are not acceptable in this grade. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (15) Used Brown Kraft Consists of brown kraft bags free of objectionable liners and original contents. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (16) Mized Kraft Cuttings Consists of new brown kraft cuttings, sheets and bag scrap tree of stitched paper. Prohibitive Materials None permitted Total Outthrows may not exceed .1% (17) Carrier Stock Consists of printed or unprinted, unbleached new beverage carrier sheets and cuttings. May contain wet strength addi- tives. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (18) New Colored Kraft Consists of new colored kraft cuttings, sheets and bag scrap, tree of stitched papers. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (19) Grocery Baq Scrap (KGB) Consists of new brown kraft bag cuttings, sheets and misprint bags. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (20) Kraft Multi-Wall Baq Scrap Consists of new brown kraft multi-wall bag Cuttings, sheets, and misprint bags, free of stitched papers. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (11) Corrugated Containers (OCC) Consists of corrugated containers having liners of either test liner, jute or kraft. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (12) Double-Sorted Corrugated (DS OCC) Consists of double-sorted corrugated containers, generated from supermarkets and/or industrial or commercial facilities, having liners of test liner, jute, or kraft. Material has been spe- cially sorted to be free of boxboard, off-shore corrugated, plas- tic,and wax. (21) New Brown Kraft Envelope Cuttings Consists of new unprinted brown kraft envelopes, cuttings or sheets. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (22) Mlxed Groundwood Shavings Consists of trim of magazines, catalogs and similar printed matter, not limited with respect to groundwood or coated stock, and may contain the bleetl of cover and insert stock as well as beater-dyed paper and solid color printing. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (23) Telephone Directories Consists of clean telephone directories printed for or by tele- phonedirectory publishers. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of i% (24) White Blank News (WBN) Consists of unprinted cuttings and sheets of white newsprint or other uncoated white groundwood paper of similar quality. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (25) Groundwood Computer Printout (GW CPO) Consists of groundwood papers which are used informs manu- factured for use in data processing machines. This grade may contain colored stripes and impact or nonimpact (e.g., laser) computer printing. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (26) Publication Blanks (CP8) Consists of unprinted cuttings or sheets of white coated or filled groundwood content paper. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (27) Flyleaf Shavings Consists of trim from magazines, catalogs and similar printed matter. May contain the bleed of cover and insert stock to a maximum of 10% dark colors. Beater-dyed paper may not exceed 2%. Shavings of novel news or newsprint grades may not be included in this grade. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (28) Coated Soft White Shavings (SWS) Consists of unprinted, coated, and uncoated shavings and sheets of white groundwood-free printing paper. May contain a small percentage of groundwootl. Prohibitive Materials None permitted Total Outthrows may not exceed )% (29) (Grade not currently in use) (301 Hard White Shavings (HWS) Consists of shavings or sheets of unprinted, untreated white groundwood free paper. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of t% (31) Hard Whke Envelope Cuttings (HWEC) Consists of groundwood-free cuttings, shavings, or sheets of unprinted, untreated, and uncoated white envelope paper. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (32) (Grade not currently in use) (33) New Colored Envelope Cuttings Consists of groundwood-free cuttings, shavings, or sheets of untreated, uncoated bleachable colored envelope paper. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (34) (Grade not currently in use) (35) Seml Bleached Cuttings Consists of sheets and cuttings of unprinted, untreated, groundwood-free paper such as file folder stock, manila tabu- lating card trim, untreated milk carton stock, or manila tag. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (36) (Grade not currently In use) (37) Sorted Office Paper (SOP) Consists of paper, as typically generated by offices, containing primarily white and colored groundwood-free paper, free of unbleached fiber. May include a small percentage of ground- wood computer printout and facsimile paper. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed 5% (38) (Grade not currently in use) (39) Manifold Colored Ledger (MCL) Consists of sheets, shavings, and cuttings of industrially- generated printed or unprinted colored or white groundwood- free paper. All stock must be uncoated and free of nonimpact printing. A percentage of carbonless paper is allowable. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (40) Sorted White Ledger (SWL) Consists of uncoated, printed or unprinted sheets, shavings, guillotined books, and cuttings of white groundwood-free ledger, bond, writing, and other paper which has similar fiber and filler content. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (41) Manifold White Ledger (MWL) Consists of sheets, shavings, and cuttings of industrially- generatedprinted orunprinted white groundwood-free paper. All stock must be uncoated and free of nonimpact printing. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (42) Computer Printout (CPO) Consists of white groundwood-free paper in forms manufac- tured for use in data processing machines. This grade may contain colored stripes and impact or nonimpact (e.g. laser) computer printing, and may contain no more than 5% ground- wood in the pack. All stock must be untreated and uncoated. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (43) Coated Book Stock (CBS) Consists of coated groundwood-free paper, printed or unprinb ed in sheets, shavings, guillotined books and cuttings. A rea- sonable percentage of paper containing fine groundwood may be included. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (44) Coated Groundwood Sections (CGS) Consists of printed, coated groundwood paper in sheets, sec- tions,shavings orguillotined books. This grade may not include news quality groundwood paper. Prohibitive Materials None permitted Total Outthrows may not exceed 2% .~~SCRAP SPECIFICATIONS CIRCULAR2007 .- _ ~ "~ - - _, _. _ ~ ' - - ° - ~ ` ° "Paper Stock Domestic Transadions (45) Printed Bleached Board Cuttings Consists of groundwood-free printed bleached board cuttings, free from misprint sheets, cartons, wax, greaseproof lamina- tion,gilt, and inks, adhesives or coatings that are insoluble. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (46) Misprinted Bleached Board Consists ofgroundwood-free misprint sheets and cartons of bleached board, free from wax, greaseproof lamination, gilt, and inks, adhesives or coatings that are insoluble. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 2% (47) Unprinted Bleached Board Consists of groundwood free unprinted, untreated bleached board cuttings, sheets or rolls, free from wax, greaseproof lam- inationand adhesives or coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (48) #1 Bleached Cup Stock (#1 Cup) Consists of untreated cuttings or sheets of coated or uncoated cup base stock. Cuttings with slight bleed may be included. Must be free of wax, poly, and other coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (49) #2 Printed Bleached Cup Stock (#2 Cup) Consists of printed, untreated formed cups, cup die cuts, and misprint sheets of coated or uncoated cup base stock. Glues must be water soluble. Must be free of wax, poly, and other coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (50) Unprinted Bleached Plate Stock Consists of groundwood free bleached coated or uncoated, untreated and unprinted plate cuttings and sheets. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (51) Printed Bleached Plate Stock Consists of groundwood free bleached coated or uncoated, untreated printed plates and sheets. Must be free of coatings or inks that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% The Paper Stock Industries Chapter of ISRI is not establishing specific specifications, which would refer to such factors as the type of wet strength agent used, the percentage of wax, the amount of polycoating, whether it is on top of or under the printing, etc. The specification for each grade should be deter- mined between Buyer and Seller, and it is recommended that purchase be made based on sample. These specialty grades are as follows 1-S White Waxed Cup Cuttings 2-S Printed Waxed Cup Cuttings 3-S Plastic Coated Cups 4-S Polycoated Bleached Kraft-Unprinted 5-S Polycoated Bleached Kraft-Printed 6-S Polycoated Milk Carton Stock 7-S Polycoated Diaper Stock 8-S Polycoated Boxboard Cuttings 9-S Waxed Boxboard Cuttings 10-5 Prin[ed and/or Unprinted Bleached Sulphate Containing Foil 11-5 Waxed Corrugated Cuttings 12-5 Wet Strength Corrugated Cuttings 13-5 Asphalt Laminated Corrugated Cuttings 14-5 Beer Carton Scrap 15-5 Contaminated Bag Scrap 16-5 Insoluble Glued Free Sheet Paper and/or Board (IGS) 17-5 White Wet Strength Scrap 18-5 Brown Wet Strength Scrap 19-5 Printed and/or Colored Wet Strength Scrap 20-5 File Stock 21-5 New Computer Print Out 22-5 Ruled White 23-5 Flyleaf Shavings Containing Hot Melt Glue 24-5 Carbon Mix 25-5 Books with Covers 26-5 Unsorted Tabulating Cards 27-5 Colored Tabulating Cards 28-5 Carbonless Treated Ledger 29-5 (Not currently in use) 30-5 Plastic Windowed Envelopes 31-5 Textile Boxes 32-5 Printed TMP 33-5 Unprinted TMP 34-5 Manila Tabulating Cards 35-5 Sorted Colored Ledger , Specialty Grades The grades listed below are produced and traded in carload and truckload quantities throughout the United States, and because of certain characteristics (i.e., the presence of wet strength, polycoatings, plastic, foil, carbon paper, hot melt glue), are not included in the regular grades of paper stock. However, it is recognized that many mills have special equip- mentand are able to utilize large quantities of these grades. Since many paper mills around the world do use these special- ty grades, they are being listed with appropriate grade num- bers for easy reference. Glossary of Paper Stock Terms for Both Domestic and Export Transactions The following is a glossary of paper stock terms used within section VI, Grade Definitions, of the Guidelines for Paper Stock: P54005, for both Domestic and Export Trahsactions. These terms are not intended as a dictionary, but as a guide to help the Circular user better understand specific grade definitions as used in the recovered paper industry. ADHESIVES: Bonding substances that are non-water soluble are considered contaminants in pulp subs, groundwood and deinking grades. BEATER•DYED: Paper dyed or colored during the paper man- ufacturing process. BLEACHED: Paper that has been whitened by chemicals. BOARDS: Paperboard 0.006 inch or thicker. BOGUS: Paper of inferior quality to a standard grade. BOxBOARD: Paperboard made from a variety of recovered fibers having sufficient folding properties and thickness to be used to manufacture folding or set-up boxes. CHEMICAL WOOD-FIBER PULP: Generic for cellulose fiber isolated and purified by a chemical digestive process. CHIPBOARD: Uncoated, non folding paperboard made from a variety of recovered papers, having sufficient strength and structural properties to be used to manufacture game boards, book covers, notebook backing and similar products. COATINGS: A layer of adhesives, clays, varnish or any barrier applied to paper. CONTAINERBOARD: Linerboard and corrugated medium used to manufacture shipping containers. CORES: Paper tubes on which rolls of paper may be wound far shipment. CORRUGATED CONTAINERS: Shipping containers made with kraft paper linerboard and corrugated medium. CUTTINGS: Paper stock by-product of paper converting oper- ations. FILLER/FILLED: Denotes papers that have minerals (clays or other pigments) added for improving quality or color. FLYLEAF/SHAVINGS: Trim scrap from printing operations. FREESHEET: Paper that contains less than 10% groundwood fiber (synonym: groundwood-free). GROUNDWOOD: Paper made with fibers produced without chemical pulping. GILT: Metallic (gold or silver) inks used in printing. HOGGED: Paper that has been mechanically torn or ripped to reduce its original size. HOT-MELT: A type of glue or adhesive applied while hot/warm. Considered a contaminant in some grades. IMPACT (PRINTING): A paper printing process that physically applies ink to the paper surface. INSOLVABLE GLUES: Glues that won't dissolve (break down) in water. JUTE: Strong, long-fibered pulp made from hemp. KRAFT: Paper made from sulfate pulp (synonyms: brown and strong). LAMINATED: Paper manufactured by fusing one or more lay- ers of paper together. LINERBOARD: Outside layers of a combination board used to manufacture corrugated shipping containers. MANIFOLD: May denote continuous forms or business forms with several parts (may be interleaved with carbon paper or be carbonless papers). MEDIUM: The inner corrugated fluted material used to manu- facture corrugated shipping containers. NON-IMPACT: Papers having printing images formed without impact. OFFSHORE/ASIAN: Denotes corrugated shipping containers manufactured overseas and containing bogus liners or medi- um. (Color is somewhat lighter/more yellow than North Ameri- can produced materials). PAPERBOARD: Denotes paper products used for packaging (corrugated boxes, tolding cartons, set-up boxes, etc.). ROTOGRAVURE: A paper printing (intaglio) process typically used to create the highest quality of smoothness on coated and uncoated papers. Excess quantities are considered an out- throw in grades #7, #8, and #g. SECTIONS: Unbound, unused printed material with full ink coverage. SHAVINGS: Trim from converting and bindery operations. SIGNATURES: A section of book obtained by folding a single sheet of printing paper. SLABBED: Type of paper stock normally generated by cutting rolls. SULFITE: Papers and boards made from pulps made from an acid process. SULPHATE: Papers and boards made from alkaline processed pulps. TEST LINER: Liners, which are the outer ply of any kind of paperboard, containing 100% recycled material. TMP: Thermomechanical pulp. TREATED: Paper manufactured with additives. TRIM: Cuttings of paper stock generated at converting or bindery operations which normally have little or no printing. ULTRAVIOLET (UV) INKS/COATINGS: Papers having inks -or coatings dried by utilizing an ultraviolet radiation method. Considered a contaminant in deinking grades. WET STRENGTH: Papers that have been treated with a moisture resistant chemical that inhibits pulping. ~ SCRAP SPECIFICATIONS'CIRCULAR 2007 _. ~,_ _.=_ -, __, ~-`_ a ..:. _ .., ~, j Guidelines for Paper Stock: PS-2007-Export Transactions Paper Stock: Export Transactions Preamble These Guidelines apply to paper stock for repulping only and are for use in export transactions from the U.S. and Canada. Basic to the success of any Buyer-Seller relationship is an atmosphere of "good faith;' In keeping with this, the following underlying principles have been accepted as necessary to the maintenance of amicable international dealings: 1. Seller must use due diligence to ascertain that shipments consist of properly packed paper stock and that shipment is made during the period specified. 4. Price The price agreed upon shall be clearly stated in U.S. dollars and cents. 5. Transportation Charges These shall be clearly indicated with the use of the follow- ing phrases such as: "FA.S. harbor," or "C&F; "'C.I.F;' or "container yard" (CY), "ex-ship; "'ex-frontier." 6. Shipping a. Instructions-Should be provided by Buyer at time of order. Information should include: consignee; party to be notified; identification marks; insurance informa- tion; and freight payment information. 2. Arbitrary rejections, deductions and cancellations by the Buyer are counter to acceptable good trade practice. 3. Seller shall deliver the quality of paper stock agreed upon but shall not be responsible for its use or the paper or paperboard manufactured therefrom. 4. Unless otherwise mutually agreed to by both Buyer-Seller, all transactions shall conform to the trade practice out- lined in these Guidelines and the grade descriptions shown in the PSI Standards and Practices Circular. I. The Purchase Agreement Each transaction covering the purchase or sale of paper stock should be confirmed in writing and include agreement on the following items: 1. Quantity Where possible, the quantity shall always be specified in terms of a definite number of metric tons of 2,204.6 pounds each, or short tons of 2,000 pounds each. a. If the quantity is specified in tons, the order shall be considered completed when aggregate shipments are 5% under or over the quantity ordered (unless Letter of Credit restrictions apply). b. If the quantity is specified in truckload and/or contain- er load, this is defined as full visible capacity but not in excess of legal or freight line limits. 2. Grades Where possible, each grade purchased shall be specified in accordance with the grade as defined in the latest Paper Stock Industries Chapter Standards and Practices Circular. Any deviation from the grades listed in the Paper Stock Industries Chapter Standards and Practices Circular should be specified and agreed to by both parties. 3. Packing Whether units are to be bales, skids, rolls, pallets, boxes, or bundles should be stated. Where possible, approximate sizes or weights should be specified. b. Time Frame-Shipment to be completed within 30 days of receipt of order, Letter of Credit and instruction information, unless otherwise specified. 7. Terms Payment shall be made in U.S. dollars by means of an irrevocable letter of Credit confirmed by a U.S. bank. 8. Method of Invoicing Invoicing instructions shall be clearly stated in Letter of Credit. I I. Fulfillment by the Seller Practices of the Seller shall be in accordance with the follow- ing: 1. Acceptance All orders shall be confirmed in writing. 2. Grading Paper stock which is sold under the grade names appear- ing in the PSI Standards and Practices Circular shall be warranted to conform to those grading definitions. 3. Baling Each bale must be secured with a sufficient number of bale ties drawn tight to insure a satisfactory delivery. 4. Tare Sides and headers must be adequate to make a satisfacto- ry delivery of the bale but must not be excessive. The weight of skids or iron cores should be deducted from a gross invoice weight. 5. Loading Paper stock shall be loaded as follows: a. Before they are loaded, cars, trucks, and containers shall be in sound condition and free from odors and objectionable materials. b. Grades should be loaded in straight loads unless other- wiseagreed to. When two or more grades are included in the same shipment, units of each grade should be kept together in a separate part of the container. y(-'Pape-r Stockck Fipod Transactions - - _ - INSTITUTE OF SCRAP RECYCLING INDUSTRIES, ING -~ c. Paper stock must be loaded in a manner that will mini- mize shifting and breakage. Excessive breakage prior to unloading may because for a claim. In the event of any claim, the Buyer shall use due diligence to protect all controversial paper stock from external dete- rioration or contamination. 6. Shipping Notice A shipping notice or an invoice showing the date of ship- menCcontainer number and net weight of contents shall be mailed or telexed to the Buyer within 72 hours of ship- ment. On request, a bill of lading shall be furnished. 7. Invoicing Invoicing should conform to instructions on the order and include the following data: a. Date of Shipment b. Container Number c. Ship Name d. Bill of Lading Number e. Customer's Order Number f. Shipper's Invoice Number g. Number of Bales, Rolls, etc. h. Quantity and Grade i. Price and Extension j. Terms 8. Claims When a Seller has been notified of a claim, within five busi- nessdays he/she must advise the Buyer as to which of the following procedures he/she has decided upon: a. Require the opportunity to inspect the quality of the material in question within five business days and dur- ingsuch period give Buyer final disposition. b. Agree with the Buyer to a compromise acceptance and settlement. c. Request the Buyer agree to submit the claim to arbitration. III. Fulfillment by the Buyer The practice of the Buyer shall be in accordance with the following: 1. Unloading After arrival of the shipment, the Buyer is to inspect the contents so far as possible while it is still loaded. If the shipment appears to be in accordance with the order and shipping notice, the Buyer shall proceed with the unloading. If the shipment does not appear to be in accordance with the order and shipping notices, or if the quality of the stock is not in accordance with specifications agreed to, the Buy- er shall immediately notify the Seller before unloading. If during the process of unloading, any portion of the ship- mentnot visible in the original inspection is not in accor- dance with specifications, shipping notice and order, that portion shall be set aside and the Seller immediately noti- fied. 2. Claims Other Than Quality The Buyer shall within 10 days of unloading notify the Sell- er ofany necessary changes and shall furnish detailed information with regard to these changes. 3. Rejection In the event of a rejection, the Buyer shall be responsible for any paper stock used by the Buyer and the freight thereon, other than such quantity as may be considered reasonable for laboratory sampling or testing purposes. The Buyer must protect the shipment from weather or any other elements until the claim is settled. IV. Miscellaneous Practices 1. Ownership If the shipment is purchased on a "delivered destination" basis, and is in accordance with the agreement covering the transaction, it remains the property bf the Seller until it is delivered to the Buyer by carrier. 2. Demurrage Charges a. Any demurrage accrued on a shipment due to the fail- ure of the Seller to ship in accordance with the order, except with respect to quality, is the liability of the Sell- er. b. In the event that a rejection for quality stands, any demurrage accruing on the shipment prior to notifica- tion to the Seller shall be the Buyer's liability. c. In the event that negotiation of substantiated rejection for quality results in agreement by the Buyer to accept the shipment, then only the demurrage, following noti- fication of the rejection-and including 24 hours after the agreement-becomes the liability of the Seller. Demurrage accruing prior to and including the day of notification becomes the liability of the Buyer. 3. Switching and Freight charges Any extra switching or excess freight charges accruing on a shipment due to the tailure of the Seller to protect the agreed upon minimum rate or to ship in accordance with the agreement is the liability of the Seller. 4. Weight Discrepancies No debits, credits or adjustments shall be issued on any shipment of paper stock when the weight variation is 2% or less. In the event that a discrepancy exceeds those mentioned above as "allowable;" the Buyer and Seller shall exchange copies of certified weight in containers. In the event that both parties have such records, and errors cannot be determined, it is recommended that the weight closest to the public carrier's scale weight shall be assumed to be correct, Buyer and Seller should agree on the location of the public carrier's scale prior to shipment. In the absence of such records on the part of one of the parties, the records of the other party shall govern. If at any time within 21 days after receipt of shipment, the Buyer, upon opening the bales finds objectionable materials heretofore not visible, he shall immediately notify the Seller SCRAP SPECIFICATIONSCIRCULAR2007 ~ - Pdpdr $I0Ck Erpod Trdndd[liOdS z 5. Moisture Content All paper stock must be packed air dry. A moisture content of 12% is deemed to be air dry. Where excess moisture is present in the shipment, the Buyer has the right to request an adjustment. Whenever possible, such adjustment shall be made on an average air dry basis. 6. Replacement of Shipment ' In the event that any shipment is rejected due to quality: Whether or not the shipment is to be replaced is to be decided by mutual agreement between Buyer and Seller. 7. Promptness of Shipment a. In the event that Buyer causes shipment to be postponed: On instructions of the Buyer, the Seller shall have the option of extending the time limit of the order by the same number of days of the postponement, or of can- celing that portion of the order on which shipment was postponed. Seller shall promptly notify Buyer of option selected. b. In the event that Buyer causes shipment to be postponed: On instructions of the Seller, the Buyer shall have the option of extending the time limit of the order by the same number of days of the postponement, or of can- celing that portion of the order on which shipment was postponed. Buyer shall promptly notify Seller of option selected. 8. Outthrows Outthrows shall be understood to be all papers that are so manufactured or treated or are in such form as to be unsuitable for consumption as the grade specified. 9. Prohibitive Materials a. Any materials which, by their presence in a packing of paper stock, in excess of the amount allowed, make the packing unusable as the grade specified. b. Any materials which, by their presence in a package of paper stock, pose a risk of damage to the equipment. Note: In connection with Items 8 and 9, a material can be classified as an "Outthrow" in one grade and as a "Prohibitive Material" in another grade. Carbon paper, for instance, is "UNSUITABLE" in Mixed Paper and is, therefore, classified as an "Outthrow'"; whereas it is "UNUSABLE" in White ledger and in this case classi- fied as a "Prohibitive Material." VI. Grade Definitions The definitions which follow describe grades as they should be sorted and packed. CONSIDERATION SHOULD BE GIVEN TO THE FACT THAT PAPER STOCK AS SUCH IS A SECONDARY MATERIAL PRODUCED MANUALLY AND MAY NOT BE TECH- NICALLY PERFECT. Definitions may not specifically address all types of processes used in the manufacture or recycling of paper products. Specific requirements should be discussed between Buyer and Seller during negotiations. Outthrows The term "Outthrows" as used throughout this section is defined as "all papers that are so manufactured or treated or are in such a form as to be unsuitable for consumption as the grade specified:' Prohibitive Materials The term "Prohibitive Materials" as used throughout this sec- tion is defined as: a. Any materials which by their presence in a packing of paper stock, in excess of the amount allowed, will make the packaging unusable as the grade specified. b. Any materials that maybe damaging to equipment. Note: The maximum quantity of "Outthrows" indicated in connection with the following grade definitions is under- stood to be the TOTAL of "Outthrows" and "Prohibitive Materials." A material can be classified as an "Outthrow" in one grade and as a "Prohibitive Material" in another grade. Carbon paper, for instance, is "UNSUITABLE" in Mixed Paper and is, therefore, classified as an "Outthrow"; whereas it is "UNUSABLE" in White Ledger and in this case is classified as a "Prohibitive Material:' Glossary of Terms A supplemental glossary of paper stock terms is located on page 29. The purpose of this limited list of terms is to help the user better understand specific grade definitions contained within this Circular. (1) Soft Mixed Paper Consists of a mixture of various qualities of paper not limited as to type of baling or fiber content. Prohibitive Materials may not exceed ~ 2% Total Outthrows may not exceed 10% (2I Mixed Paper Consists of a clean, sorted mixture of various qualities of paper containing less than 10%of groundwood content. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 3% V. Arbitration In the event of a total disagreement between Buyer and Seller, the dispute should be submitted to ISRI arbitration. In all cases, the cost of arbitration shall be borne by the party found to beat fault, or split in the event of compromise, as determined by the arbitrators. (3) (Grade not currently In use) {4) Bozboard Cuttings Consists of new cuttings of paperboard used in the manufac- ture of folding cartons, set-up boxes, and similar bozboard products. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% °" `- (,NpBf $teCh FipOrt TrdOStCfiOAS _ INSTITUTE OF.SCRAP RECYCLING INDUSTRIES, INC. (5) Mill Wrappers Consists of paper used as outside wrap for rolls, bundles, or skids of finished paper. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 3% (6) News Consists of newspaper as typically generated from news drives and curbside collections. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (7) News, De-Ink Quality (tk7 ONP) Consists of sorted, fresh newspapers, not sunburned, contain- ing not more than the normal percentage of rotogravure and colored sections. May contain magazines. Prohibitive Materials None permitted Total Outthrows may not exceed 1/4 of 1% p4) Fiber Cores Consists of paper cores made from either chipboard and/or linerboard, single or multiple plies. Metal or plastic end caps, wood plugs, and textile residues are not acceptable in this grade Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (15) Used Brown Kraft Consists of used brown kraft bags free of objectionable liners and original contents. - Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of to/o (16) Mixed Kraft Cuttings Consists of new brown kraft cuttings, sheets and bag scrap free of stitched paper. Prohibitive Materials None permitted Total Outthrows may not exceed W/o (8) Speeial News, De-ink Ouality.(7i8 ONP) Consists of sorted, fresh newspapers, not sunburned, free from magazines, white blank, pressroom over-issues, and paper other than news, containing not more than the normal percentage of rotogravure and colored sections. This grade must be tare-free. Prohibitive Materials None permitted Total Outthrows may not exceed 1/4 0(1% (9) Overissue News (01 or OIN) Consists of unused, overrun newspapers printed on newsprint, or securely tied in bundles, containing not more than the nor- mal percentage of rotogravure and colored sections. Prohibitive Materials None permitted Total Outthrows None permitted (10) Magazines (OMG) Consists of coated magazines, catalogues, and similar printed materials. May contain a small percentage of uncoated news- type paper. Prohibitive Materials may not exceed t% Total Outtrows may not exceed 3% Dt) Corrugated Containers (OCC) Consists of corrugated containers having liners of either test liner, jute, or kraft. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (12) Double Sorted Corrugated (DS OCCI Consists of double sorted corrugated containers, generated from supermarkets and/or industrial or commercial facilities, having liners of test liner, jute, or kraft. Material has been spe- ciallysorted to be free of boxboard, off-shore corrugated, plas- tic,and wax. Prohibitive Materials may not exceed 1/2 of t% Total Outthrows may not exceed 2% p3) New Double-Lined Kraft Corrugated Cuttings (DLK) Consists of new corrugated cuttings having liners of either test liner, jute, or kratt. Treated medium or liners, insoluble adhe- sives, butt rolls, slabbed or hogged medium, are not acceptable in this grade. Prohibitive Materials None permitted Total Outthrows may not exceed 2% p7) Carrier Stock Consists of printed or unprinted, unbleached new beverage car- riersheets and cuttings. May contain wet strength additives. Prohibitive Materials None permitted Total Outthrows may not exceed 1% p8) New Colored Krak Consists of new colored kratt cuttings, sheets and bag scrap, free of stitched papers. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (19) Grocery Baq Serap (KGB) Consists of new brown kraft bag cuttings, sheets and misprint bags. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (20) Kraft Multi-Wall Baq Scrap Consists of new brown kraft multi wall bag cuttings, sheets, and misprint bags, free of stitched papers. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (21) New Brown Kraft Envelope Cuttings Consists of new unprinted brown kraft envelopes, cuttings or sheets. Prohibitive Materials None permitted Total Outthrows may not exceed t% (22) Mlzed Groundwood Shavings Consists of trim of magazines, catalogs and similar printed matter, not limited with respect to groundwood or coated stock, and may contain the bleed of cover and insert stock as well as beater-dyed paper and solid color printing. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (23) Telephone Directories Consists of clean telephone directories printed for or by tele- phonedirectory publishers. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of W/o " SCRAP SPECIFICATIONS'CIRCULAR 2007 - - paper Stock Espod Transactions - 1 ...__d.....-..____. .....,...~._...-.,._.._. - 1 (24) White Blank News (WBN) Consists of unprinted cuttings and sheets of white newsprint or other uncoated white groundwood paper of similar quality. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (25) Groundwood Computer Printout (GW CPO) Consists of groundwood papers which are used in forms manu- factured for use in data processing machines. This grade may contain colored stripes and impact or nonimpact (e.g., laser) computer printing. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (26) Publication Blanks (CPB) Consists of unprinted cuttings or sheets of white coated or filled groundwood content paper. Prohibitive Materials None permitted Total Outthrows may not exceed W/o (27> Flyleaf Shavings Consists of trim from magazines, catalogs and similar printed matter. May contain the bleed of cover and insert stock to a maximum of 10%dark colors. Beater-dyed paper may not exceed 2%. Shavings of novel news or newsprint grades may not be included in this grade. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (28) Coated Soft White Shavings (SWS) Consists of unprinted, coated, and uncoated, shavings and sheets of white groundwood-free printing paper. May contain a small percentage of groundwood. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (29) (Grade not currently In use) (30) Hard White Shavings (HWS) Consists of shavings or sheets of unprinted, untreated white groundwood-free paper. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (31) Hard Whtte Envelope Cuttings (HWEC) Consists of groundwood-free cuttings, shavings or sheets of unprinted, untreated and uncoated white envelope paper. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (37) Sorted Office Paper (SOP) Consists of paper, as typically generated by offices, containing primarily white and colored groundwood-free paper, free of unbleached fiber. May include a small percentage of ground- wood computer printout and facsimile paper. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed 5% (38) Grade not currently in use) (39) Manifold Colored Ledger (MCL) Consists of sheets, shavings, and cuttings of industrially-gener- ated printed or unprinted colored or white groundwood free paper. All stock must be uncoated and free of nonimpact print- ing. Apercentage of carbonless paper is allowable. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 2% (40) Sorted White Ledger (SWL) Consists of uncoated, printed or unprinted sheets, shavings, guillotined books, and cuttings of white groundwood-free ledger, bond, writing, and other paper which has similar fiber and filler content. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 2% (4ll Manifold White Ledger (MWL) Consists of sheets, shavings, and cuttings of industrially-gener- ated printed or unprinted white groundwood-free paper. All stork must be uncoated and free of nonimpact printing. Prohibitive Materials may not exceed 1/2 of 7% Total Outthrows may not exceed 2% (42) Computer Printout (CPO) Consists of white groundwood-free paper in forms manufac- tured for use in data processing machines. This grade may contain colored stripes and impact or non-impact (e.g. laser) computer printing, and may contain no more than 5%ground- wood in the pack. All stock must be untreated and uncoated. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (43) Coated Book Stock (CBS) Consists of coated groundwood-free paper, printed or unprint- ed in sheets, shavings, guillotined books and cuttings. A rea- sonable percentage of paper containing fine groundwood may be included. Prohibitive Materials None permitted Total Outthrows may notexceed 2% (32) (Grade not currently in use) (33) New Colored Envelope Cuttings Consists of groundwood-free cuttings, shavings, or sheets of untreated, uncoated bleachable colored envelope paper. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (34) (Grade not currently in use) (35) Seml Bleached Cuttings Consists of sheets and cuttings of unprinted, untreated, groundwood free paper such as file foltler stock, manila tabu- lating card trim, untreated milk carton stock, or manila tag. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (44) Coated Groundwood Sections (CGS) Consists of printed, coated groundwood paper in sheets, sec bons, shavings or guillotined books. This grade may not include news quality groundwood paper. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (45) Printed Bleached Board Cuttings Consists of groundwood-free printed bleached board cuttings, free from misprint sheets, cartons, wax, greaseproof lamina- tion,gilt, and inks, adhesives or coatings that are insoluble. Prohibitive Materials may not exceed i/2 of i% Total Outthrows may not exceed 2% (36) Grade not currently in use) ~~ "- tPaper Stack fapod Transactions =r., ~ ,;.? -_ {INSTITUTE OF SCRAP RECYCIING~INDUSTRIES, INC.%" (46) Misprinted Bleached Board Consists of groundwood-free misprint sheets and cartons of bleached board, free from wax, greaseproof lamination, gilt, and inks, adhesives or coatings that are insoluble. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 2% (47) Unprinted Bleached Board Consists of groundwood-free unprinted, untreated bleached board cuttings, sheets or rolls, free from wax, greaseproof lam- inationand adhesives or coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed i% (48) #1 Bleached Cup Stock (#1 Cup) Consists of untreated cuttings or sheets of coated or uncoated cup base stock. Cuttings with slight bleed may be included. Must be free of wax, poly, and other coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows maY not exceed 1/2 of 1% Specialty Grades The grades listed below are produced and traded in carload and truckload quantities throughout the United States, and because of certain characteristics (i.e., the presence of wet strength, polycpatings, plastic, foil, carbon paper, hot melt glue), are not included in the regular grades of paper stock. However, it is recognized that many mills have special equip- mentand are able to utilize large quantities of these grades. Since many paper mills around the world do use these special- tygrades, they are being listed with appropriate grade num- bersfor easy reference. The Paper Stock Industries Chapter of ISRI is not establishing specific specifications, which would refer to such factors as the type of wet strength agent used, the percentage of wax, the amount of polycoating, whether it is on top of or under the printing, etc. The specification for each grade should be deter- mined between Buyer and Seller, and it is recommended that purchase be made based on sample. -(49) #2 Printed Bleached Cup Stock (#2 Cup) Consists of printed, untreated formed cups, cup die cuts, and misprint sheets of coated or uncoated cup base stock. Glues must be water soluble. Must be free of wax, poly, and other coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (50) Unprinted Bleached Plate Stock Consists ofgroundwood-free bleached coated or uncoated, untreated and unprinted plate cuttings and sheets. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (51) Printed Bleached Plate Stoek Consists of groundwood-free bleached coated or uncoated, untreated printed plates and sheets. Must be free of coatings or inks that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% These specialty grades are as follows 1-S White Waxed Cup Cuttings 2-S Printed Waxed Cup Cuttings 3-S Plastic Coated Cups 4-S Polycoated Bleached Kraft-Unprinted 5-S Polycoated Bleached Kraft-Printed 6-S Polycoated Milk Carton Stock 7-5 Polycoated Diaper Stock 8-5 Polycoated Boxboard Cuttings 9-S Waxed Boxboard Cuttings 10-5 Printed and/or Unprinted Bleached Sulphate Containing Foil 11-5 Waxed Corrugated Cuttings 12-5 Wet Strength Corrugated Cuttings 13-5 Asphalt Laminated Corrugatetl Cuttings 14-5 Beer Carton Scrap 15-5 Contaminated Bag Scrap 16-5 Insoluble Glued Free Sheet Paper and/or Board (IGS) 17-5 White Wet Strength Scrap 18-5 Brown Wet Strength Scrap 19-5 Printed and/or Colored Wet Strength Scrap 20-5 File Stock 21-5 New Computer Print Out 22-5 Ruled White 23-5 Flyleaf Shavings Containing Hot Melt Glue 24-5 Carbon Mix 25-5 Books with Covers 26-5 Unsorted Tabulating Cards 27-5 Colored Tabulating Cards 28-5 Carbonless Treated Ledger 29-5 (Not currently in use) 30-5 Plastic Windowed Envelopes 31-5 Textile Boxes 32-5 Printed TMP 33-5 Unprinted TMP 34-5 Manila Tabulating Cards 35-5 Sorted Colored Ledger -era-~--m---~--P- ------ - SCRAP SPECIFICATIONS CIRCULAR.2007 Se - ~._.~ Guidelines for Plastic Scrap: P-2007 Baled Recycled Plastic Scrap Commercial Guidelines General Information Commercial Guidelines for Baled Recycled Plastic Scrap were developed to provide industrywide quality standards. These standards will facilitate commodity trading of these materials. They will also focus suppliers of such material on the quality requirements of their customers. Product These guidelines are designed with the potential for dealing with all recycled plastic in bale form. Initial specifications refer only to bottles. The code framework allows for generation of guidelines for all types of plastic packaging materials (includ- ing rigids and flexibles) with room for expansion to other plas- tic products and resins including those which are used to produce durable goods. Guidelines for those products may be added at a later date. ' Codes Codes for baled recycled plastics consist of a prefix letter, three digits and two suffix letters. The prefix letter "P" precedes all codes and designates "plastic" material. The first digit corre- sponds to the SPI resin identification code system and desig- natesthe primary plastic material. The second digit describes the plastic product category. The third digit defines the color/appearance of the product. The first suffix letter indicates the type of recycled plastic. The second suffix letter indicates the source of the recycled plastic product. (See Table 1.) Bale Density Bales shall be compressed to a minimum density of 10 pounds per cubic foot and a maximum density to be determined by individual contract between Buyer and Seller. Increased densi- ty may improve transportation efficiency, but over-compres- sion may adversely affect the ability of a Buyer to separate, sort, and reprocess the material. Bale lying Material Bale wires, ties, or straps shall be made of non-rusting or cor- roding material. Bale Integrity Bale integrity must be maintained through loading, shipping, handling, and storage. Distorted or broken bales are difficult to handle. They are unacceptable and may result in downgrading, rejection, or charge back. Prohibited Material Certain materials are understood to be specified as "prohibit- ed:'Such materials will render the bale "non specification" and may cause some customers to reject the entire shipment. These may include plastic materials which have a deleterious effect on each other when reprocessed, and materials such as agricultural chemicals, hazardous materials, flammable liquids and/or their containers, and medical waste. Liquids Plastic containers/materials should be empty and dry when baled. The bale should be free of any free flowing liquid of any type. General Shipments should be essentially free of dirt, mud, stones, grease, glass, and paper. The plastic must not have been dam- aged by ultraviolet exposure. Every effort should be made to store the material above ground and under cover. A good faith effort on the part of the supplier will be made to include only rinsed bottles which have closures removed. Definitions for Plastic Materials Rigid Plastic Container A package (formed or molded container) which maintains its shape when empty and unsupported. Plastic Bottle A rigid container which is designed with a neck that is smaller than the hotly. Normally used to hold liquids and emptied by pouring. Plastic Film A thin flexible sheet which does not hold a particular shape when unsupported. Recycled Plastic Plastics composed of either post-consumer or recovered mate- rial or both. Recovered Plastic Plastic materials which have been recovered or diverted from the solid waste stream. Does not include materials generated from and commonly reused within an original manufacturing process. Allowable Contamination Unspecified materials must not exceed 2% of total bale weight. Bales which contain over 2% will be subjected to reduction in the contracted price of the material as well as charges for disposal of the contaminants. The reduced per- centage will vary depending upon the amount and type of con- tamination. Oualiy of the baled plastic is the primary factor which determines the value. Post-Consumer Products generated by a business or consumer that have served their intended end use and have been separated or diverted from the solid waste stream for the purpose of recycling. 4' ;" ~ -Guidelines far Plast¢Scrap ;~. - INSTITUTE OF SCRAP RECYCLING INDUSTRIES INC.; Baled Recycled Plastic Commercial Guidelines Coding System POOOXX The coding system for baled recycled plastic consists of a three- The second digit describes the plastic/product category. digit number with a prefix letter "P"and atwo-letter suffix. The third digit defines the color/appearance of the product. The prefix "P"designates the category of Plastics and differenti- ates the code from similar codes for metals and other materials. The first digit corresponds to the SPI resin identification code system and designates the primary plastic material. The first suffix letter indicates the type of recycled plastic. The second suffix letter indicates the source of the recycled plastic product. Coding Key: P O 0 0 X X Plastic Resin Code Product Color Type Source 0 Mixed Resins (1-7) 1 PET 0-Bottles 0-Mixture P-Post Consumer M-Municipal 2 HDPE 1-Rigids 1-Natural 3 PVC - R-Recovered I-Industrial 4 LDPE 2-Films 2-Pigment/Dyed 5 PP C-Commercial 6 PS 3-9 To be assigned 3-9 Designated within each category S-Institutional 7 Other 8 To be assigned 9 To be assigned Baled Plastic Material Identification Codes Series Code Resin Categorles P-1005eries-PET P-100 PET Mixed Bottles P-101 PET Clear Soda Bottles P-102 PET Green Soda Bottles P-103 PET Mixed Clear & Green Soda Bottles P-104 PET Custom Bottles P-110 PET Mixed Rigid Containers P-200 Series-HDPE P-200 HDPE Mixed Bottles P-201 HDPE Natural Bottles P-202 HDPE Pigmented Bottles P-3005eries-PVC P-300 PVC Mixed Bottles P-301 PVC Natural Bottles P-302 PVC Pigmented Bottles P-400 Series-LDPE P-400 LDPE Mixed Bottles P-401 LDPE Natural Bottles P-402 LDPE Pigmented Bottles Series ~ Code Resin Categorles P-500 Series-PP P-500 PP Mixed Bottles P-501 PP Natural Bottles P-502 PP Pigmented Bottles P-600 Series-PS P-600 PS Mixed Bottles P-601 PS Natural Bottles P-602 PS Pigmented Bottles P-700 Series Other/Code 7 P-700 OTHER Mixed Bottles P-701 OTHER Natural Bottles P-702 OTHER Pigmented Bottles P-000 Series-Mixed resins (Codes 1-7) P-000 MIXED Mixed Bottles P-001 MIXED Natural Bottles P-002 MIXED Pigmented Bottles NOTE: The existence of a code category does not imply the existence of a~market for the material. These are representative code categories. Other categories may be developed as the need arises. ._ . r 'SCRAP SPECIFICATIONS CIRCULAR.2007 - ~ _ .Guidelines for Plastic Step _ Commercial Guideline Baled Recycled Plastic Standard P-100 Resin: PET MIXED Product: Bottles Only Category: Mixed soft drink, liquor, edible oil, etc. bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density:101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading b storage Contamination: Total allowable:2~o Type: Non specified plastic or non-plastic material Dirt: Essentially free of dirt, mud S stones Haz. Mat.: No hazardous or medical waste No free flowing liquid Storage: Outdoor: <6 months unless covered with UV protective materials General: Good faith effort to rinse hottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-101 Resin: PET CLEAR Product: Bottles Only Category: Beverage containers only U, 2, 3liter, l6 oz. soft drink bottles) Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: 101bs/cu ft. minimum Strapping: Nan-rusting material Integrity: Must be maintained through shipping, unloading S storage Contamination: Total allowable: 2% Type: Non-specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud S stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <b months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-102 Resin: PET GREEN Product: Bottles Only Category: Beverage containers only U, 2.31iter, l6 oz. soft drink bottles) Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: 101bslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Totalallowable:2% Type: Non specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud 5 stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <6 months unless covered with UV protective materials General: Good faith effort to rinse bottles Commercial Guideline Baled Recycled Plastic Standard P-103 Resin: PET CLEAR and GREEN Product: Bottles Only Category: Beverage containers only (1.2,31iter, l6 oz. soft drink bottles) Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density:101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable:2% Type: Non-specified plastic or non plastic material Dirt: Essentially free of dirt, mud & stones Haz. Mat : No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <b months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-104 Resin: PET CUSTOM Product: Bottles and Jars Only Category: Mixed liquor, edible oil, peanut butter, etc. bottles/jars Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: 1016s/cu ft. minimum Strapping: Non rusting material Integrity: Must be maintained through shipping, unloading b storage Contamination: Total allowable:2% Type: Non-specified plastic or non-plastic material Dirt: Essentially free of dirt, mud S stones Naz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-110 Resin: ,PET MIXED Product: Rigid Containers Category: Mixed bottles, jars, tubs. trays, etc. Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density:l0lbs/cu ft. minimum Strapping: Nan-rusting material Integrity: Must be maintained through shipping, unloading S storage Contamination: Total allowable: 2"h Type: Non specified plastic or non-plastic material Dirt: Essentially free of dirt, mud S stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <b months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures GmdelinesfarPlasticScrap ', ' _ INSTITUTE OF'SCRAP RECVCLING,INDUSTRIES, INC..;' Commercial Guideline Baled Recycled Plastic Standard P-200 Resin: HDPE MIXED Product: Bottles Only Category: Mixed household HDPE bottles (detergent, shampoo. household products, milk, etc.) Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density:101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must 6e maintained through shipping, unloading S storage Contamination: Total allowable:2% TYDe: Non specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud S stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-201 Resin: HDPE NATURAL Product: Battles Only Category: Milk, water, and juice (quart,+gallon, and 1 gallon bottles) Type: Source: Bale Properties : Dimension: 72" maximum Bulk Density: 1O lbs/cu ft. Minimum Strapping: Non rusting material Integrity: Must be maintained through shipping, unloading d storage Contamination: Total allowable:2Wo Type: Non-specified plastic or non-plastic material Dirt: Essentially free of dirt, mud 6 stones Naz. Mat : No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic StandaM P-202 Resin: HDPE PIGMENTED Product: Bottles Only Category: Mixed pigmented household HDPE bottles (detergent, shampoo. household products, etc.) Type: Source: Bale Properties: Dimension: l2' maximum Bulk Density:1O lbs/cuff, minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping. unloading S storage Contamination: Total allowable:2% Type: Nan-specified plastic or non-plastic material Dirt: Essentially free of dirt, mud 5 stones Haz. Mat.: No hazardous or medical waste Moisture: No tree flawing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-300 Resin: PVC MIXED Product: Bottles Only Category: Mixed clear and pigmented bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: IO lbs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable:2% Type: Non-specified plastic ornon-plastic material Dirt: Essentially free of dirt. mud S stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P301 Resin: PVC NATURAL Product: Battles Only Category: Clear Bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density:101bs/cu ft. minimum Strapping: Nan-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable:2% Type: Non-specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud & stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P302 Resin: PVC PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: 101bs/cu (l. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud S stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures . _ _- ~~ SCRAP SPECIFICATIONS.CIRCULAR 2007 LY _ 6uidelinesfor Plastic Soap ~~~s Commercial Guideline Baled Recycled Plastic Standard P-400 Resin: LDPE MIXED Product: Bottles Only Category: Mined natural and pigmented bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: t01bs/cu ft. minimum Strapping: Non rusting material Integrity: Must be maintained through shipping, unloading bstorage Contamination: Total allowable: 2% Type: Non specified plastic or non-plastic material Dirt: Essentially free of dirt, mud & stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-401 Resin: LDPE MIXED Product: Bottles Only Category: Natural Bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: l0lbs/cu ft. minimum Strapping: Non rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plastic or non-plastic material Dirt: Essentially free of dirt, mud b stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor. <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-402 Resin: LDPE PIGMENTED Product: Bottles Only Category: Pigmented Battles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: lO lbs/cu tt. minimum Strapping: Non rusting material Integrity: Must be maintained through shipping, unloading b storage Contamination: Total allowable:2% Type: Non-specified plastic or non plastic material Dirt: Essentially free of dirt, mud b stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-500 Resin: PP MIXED Product: Bottles Only Category: Mixed natural and pigmented bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density:l0lbs/cu ft. minimum Strapping: Non rusting material Integrity: Must he maintained through shipping. unloading S storage Contamination: Total allowable: 2% Type: Non specified plastic or non plastic material Dirt: Essentially free of dirt, mud & stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor:<1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Gu ideline Baled Recycled Plastic Standard P-501 Resin: PP NATURAL Product: Battles Only Category: Natural Bottles Type: Source: Bale Properties : Dimension: 72" maximum Bulk Density: 101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading S storage Contamination: Total allowable: 2°h Type: Non-specified plastic or non plastic material Dirt: Essentially free of dirt, mud b stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Gui deline Baled Recycled Plastic Standard P-502 Resin: PP PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properties : Dimension: 72" maximum Bulk Density:l0lbs/cu fl. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading 5 storage Contamination: Total allowable: 2% TYDe: Non specified plastic or non-plastic material Dirt: Essentially free of dirt, mud & stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <i month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures I_ y ._- Gmdelines for Plastic Scraps _ = INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Commercial Guideline Baled Recycled Plastic Standard P-6OO Resin: PS MIXED Product: Bottles Only Category: Mixed clear and pigmented bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: 101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading b storage Contamination: Total allowable:2% Type: Non specified plastic or non plastic material Dirt: Essentially free of dirt, mud & stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <b months unless covered with UV protective materials , General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-6O1 Resin: PS NATURAL Product: Bottles Only Category: Clear Bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: 101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading b storage Contamination: Total allowable:2% Type: Non-specified plastic or non-plastic material Dirt: Essentially free of dirt, mud b stones Haz. Mat.: No hazardous or medical waste Moisture: ~ No free flowing liquid Storage: Outdoor: <6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Gui deline Baled Recycled Plastic Standard P-6O2 Resin: PS PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density:101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading b storage Contamination: Total allowable:2% Type: Nan-specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud & stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-7OO Resin: CODE g7-OTHER MIXED Product: Bottles Only Category: Mizell natural and pigmented bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: 101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading 5 storage Contamination: Total allowable: 2% Type: Non specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud 6 stones Haz. Mat.: No hazardous or medical waste Moisture: Na free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Goad faith effort to rinse battles and remove closures Commercial Guideline Baled Recycled PWstic Standard P-7O1 Resin: CODE p7-OTHER NATURAL Product: Bottles Only Category: Natural bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: 101bs/cu ft. minimum Strapping: Non rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable:2% Type: Non specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud 6 stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-7O2 Resin: CODE R7-OTHER PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properties : Dimension: 72" mazimum Bulk Density:101bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading 6 storage Contamination: Total allowable:2% Type: Non specified plastic ornon-plastic material Dirt: Essentially free of dirt, mud S stones Haz. Mat : No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor:<1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures _SCRAP SPECIFICATIONS {IRCULAR 2007 ~ 6ndelines for Plastic Scrap ~ ~` Commercial Guideline Baled Recycled Plastic Standard P-000 Resin: MIXED RESINS (Codedlthrough 7)-MIXED COLOR Product: Bottles Only Category: Natural and pigmented bottles - rype: Source: Bale Properties: Dimension: 72" maximum Bulk Density: IO lbs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading S storage Contamination: Total allowable: 2No Type: Non-specified plastic or non plastic material Dirt: Essentially free of dirt, mud S stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse battles and remove closures Commercial Guideline Baled Recycled Plastic StandaM P-001 Resin: MIXED RESINS (Codedlthrough 7)-NATURAL Product: Bottles Only Category: Natural bottles Type: Source: Bale Properti es: Dimension: 72" maximum Bulk Density: 101bs/cu. ft. minimum Strapping: Non rusting material Integrity: Must be maintained through shipping, unloading S storage Contamination: Total allowable:2% Type: Non specified plastic or non plastic material Dirt: Essentially free of dirt, mud & stones Haz. Mat : No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-002 Resin: MIXED RESINS (Codedlthrough 7)-PIGMENTED Product: Bottles Only Category: Pigmented bottles Type: Source: Bale Properties: Dimension: 72" maximum Bulk Density: t01bs/cu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading S storage Contamination: Total allowable: 2Wo Type: Non specified Dlastic or non-Dlastic material Dirt: Essentially free of dirt, mud b stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: <7 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures y° "' °` - °~° ° °- INSTITUTE OF SCRAP RECYCLING INDUSTRIES INC Guidelines for Electronics Scrap: ES-2007 Electronics Scrap Commercial Guidelines for Electronics Scrap were developed to provide industrywide quality standards. These standards will facilitate commodity transactions domestically and inter- nationally Transactions covering shipments to or from other countries may be in accordance with these standards and may be modified by mutual agreement between Buyer and Seller. Electronic Scrap Definitions The following E-Recycling definitions will facilitate a more con- sistent language for both domestic as well as international transactions. Consumer electronic equipment including: Ratlio sets Television sets Video cameras Video recorders Eli-h recorders Audio amplifiers Musical instruments and other products or equipment for the purpose of recording or reproducing sound or images, including signals or other technologies for the distribution of sound and image by telecommunica- tions "END-OF-LIFE ELECTRONIC PRODUCTS" EOL Electronic Products are either obsolete for their intended purpose or no longer useful by the current user and lack any significant market value as an operational unit. These products are represented by any of the following categories of electron- ic products: IT and telecommunications electronic equipment Including: Centralized data processing: Mainframes Minicomputers Printer units Personal computing: Personal computers (CPU. mouse, screen and keyboard included) Laptop computers (CPU, mouse, screen and keyboard included) Notebook computers Notepad computers Printers Copying equipment Electrical and electronic typewriters Pocke[ and desk calculators Other products and equipment for the collection, storage, processing, presentation or communication of informa- tion by electronic means User terminals and systems Facsimile Telex Telephones Pay telephones Cordless telephones Cellular telephones Answering systems Other products or equipment for transmitting sound, images or other information by telecommunications Toys, leisure and sports electronic equipment including: Electric trains or car racing sets Hand-held video game consoles Video games Computers for biking, diving, running, rowing, etc. Sports equipment with electric or electronic components Coin slot machines Medical devices (except all Implanted and Infected products and radioactive components) including: Radiotherapy equipment Cardiology Dialysis Pulmonary ventilators Nuclear medicine Laboratory equipment or in-vitro diagnostics Analyzers Freezers Fertilization tests Other appliances for detecting, preventing, monitoring, treating, or alleviating illness, injury or disability Monitoring and control Instruments including: Smoke detectors Heating regulators Thermostats Measuring, weighing or adjusting appliances for household or as laboratory equipment Other monitoring and control instruments used in industri- al installations (e.g. Ira control panels) "E-Recyclinq" E-Recycling is any process by which End-of-Life (EOL) electron- icproducts which would otherwise become solid waste are col- lected,separated,reused or processed and returned to use in the form of raw materials or products. "E-Demanufacturing" Demanufacturing is the process of separating EOL electronic products (electronic materials) into metallic and non-metallic parts that can be reused or recycled. "E-Dismantler" Dismantler is a person who engages in the manual demanufac- turing of EOL electronic products (electronic materials) to reuse or recycle components and commodities contained within. - ~ .SCRAP SPECIFICATIONS CIRCULAR 2007 -_ - ,° .' : -. ~~ -- Guidelines for Electronics Scrap :--- "E-Dismantlinq" Dismantling is the manual demanufacturing of EOL electronic products (electronic materials) to reuse or recycle components and commodities contained within. "E-Proeessor" Processor is a person who engages in the mechanical demanu- facturing of EOL electronic products (electronic materials) to reuse or recycle various commodities contained within. "E-Proeessinq" Processing is the mechanical demanufacturing of EOL elec- tronicproducts (electronic materials) to recover various com- moditiescontained within. "E-Broker" Broker is a person who engages in the buying, selling, and trading of electronic products (electronic materials) without demanufacturing. "E-Brokering" Brokering is the buying, selling, and trading of electronic prod- ucts (electronic materials) without demanufacturing. ELECTRONICS SCRAP METALS-ESM ESM t-Trlple-Mixed Aluminum Breakage Shall consist of old sheet, cast, clips, punchings, bare wire and cable, painted sheet or cast of two or more alloys, free from excessive corrosion, oil, dirt and oxidation. Free of all fluids, gases, drosses, sweepings and hazardous materials such as mercury switches. All foreign attachments, non-metallics, iron, and extraneous materials are deductible. Should be sold on a recovery basis or by special arrangements with purchaser. Heavy Breakage: 20%-45%Aluminum content Medium Breakage: 46%-60%Aluminum content Light Breakage: 61%-80%Aluminum content ESM 2-Depot-Mixed Copper/Precious Metals May include any whole or partially demanufactured EOL elec- tronicproducts that are destined for a recycling processing operation. Material may contain printed circuit boards, ribbon cable, monitor yokes and other copper and/or precious metal bearing components. Final acceptance subject to agreement between Buyer and Seller. ESM 3-Dallas-Shredded Copper/Precious Metals Shredded copper/precious metal bearing from an end of life electronic products (EOLEP) shredding operation, with the majority of iron and aluminum removed. Material may contain plastic. The size will be less than one inch and the material will be tree of mercury, toner, and batteries. Typically sold on a recovery basis, subject to terms between the Buyer and Seller. ESM 4-Dallas 5-Shredded Copper/Precious Metals Shredded copper/precious metal bearing from an end of life electronic products (EOLEP) demanufacturing operation. Material may contain large quantities of steel, aluminum and plastic. Pieces will be greater than one inch but less than 5 inches. Material will be free of mercury, toner, and batteries. Typically sold on a recovery basis, subject to terms between the Buyer and Seller. ESM 6-Brant-Fragmentizer Aluminum Scrap (from EOL Electronic Products Shredders) The material, as received, must be dry and not contain more than 3%maximum free zinc, 1%maximum free magnesium, and 1.5%maximum free iron and stainless. Not to contain more than a total 5% maximum of non metallics, of which no more than )% shall be rubber and plastics. To be free of exces- sivelyoxidized material, airbag canisters, or any sealed or pres- surized items. Any variation to be sold by special arrangement between Buyer and Seller. ESM 7-Marco-Recyclable Concentrates Of Shredded Mixed Nonferrous Scrap Metal in Pieces-Derived From Fragmen- tizers For Further Separation of Contained Materials Shall be made up of a combination of the nonferrous metals: aluminum, copper, lead, magnesium, stainless steel, nickel, tin, and zinc, in elemental or alloyed (solid) form. The percentage of each of these metals within the nonferrous concentrate shall be subject to agreement between Buyer and Seller, may vary from shredder to shredder and may, in some cases, be zero for a particular metal. Shall be obtained by air separation, flotation, screening, eddy current, other segregation tech- nique(s) or a combination of the same. Shall have passed one or more magnets to reduce or eliminate free iron and/or iron attachments. Shall be free of radioactive material, dross or ash. May be screened to permit description by specific size ranges. May contain high density non-metallics such as rock, glass, rubber, plastic and wood.ltems of exclusion, inclusion or limitation not set out in the above specifications, such as mois- tureand free iron and/or attachments or the presence or absence of other metals, are subject to agreement between Buyer and Seller. Material to be traded under this guideline shall be identified as Marco with a number to follow indicating the estimated percentage nonferrous metal content of the material (e.g. Marco 63-means the material contains approxi- mately 63% nonferrous metal content). ELECTRONICS SCRAP GLASS-ESG ESG 1-Jimbo-Intact CRT's Intact CRT's with or without the steel implosion band, Copper yoke must be removed. Material must be free of projection lenses with oil or aluminum frame. ESG 2-Jamers-Furnace Grade CRT Glass Furnace Grade CRT Glass-Plastic-0.50% by weight and 1/8" maximum size, Aluminum-0.25% by weight and 1/8" maximum size, Iron-5.0% by weight and 6" maximum size, Copper-2.0% by weight and 3" maximum size. Glass shall be the balance and 6" maximum in size. Any variation to be sold by special arrangement between Buyer and Seller. ESG 3-Jacamo-Sinter Grade CRT Glass Sinter Grade CRT Glass-Plastic-0.50% by weight and 1/8" max- imum size, Aluminum-0.50% by weight and''/e" in size, Iron-2.0% by weight and'/e" in size, Copper-1.0% by weight and'/e" in size. Glass to be the balance by weight and shall have a maximum size of 1/4". At least BO% of the Glass Com- ponent must be less than 1/8" in size. ESM 5-Druid-Insulated Copper Wire Scrap Shall consist of copper wire scrap with various types of insula- tion. To be sold on a sample or recovery basis, subject to agreement between Buyer and Seller. =6uidelines far Electronics Scrap _ -~ - INSTITUTE OF SCRAP RECYCLING INDUSTRIES INC w ESG-CRT GLA55 GULLET CRT Glass Gullet Speclfieatlons-This specification includes CRT's that are cutlet size of approximately 3 to 5 inches and prepared for glass to glass recycling. ESG 4-CRT t Dirty Mixed Cutlet-when the cutlet contains both panel and funnel glass. ESG 5-CRT 2 Dirty Mixed Cutlet wkh Metals-when the Gul- let contains both panel and funnel glass with mixed metals. ESG 7-CRT 4 Dirty Panel Cutlet-when the cutlet is only pan- elglass. ESG 8-CRT 5 Clean Mixed Gullet-when the panel and funnel cutlet have been cleaned of all coatings, frit and metals. ESG 9-CRT 6 Clean Funnel Gullet-when the funnel cutlet has been cleaned of all coatings, frit and metals. ESG tO-CRT 7 Clean Panel Gullet-when the panel cutlet has been cleaned of all coatings, frit and metals. ESG 6-CRT 3 Dirty Funnel Gullet-when the cutlet is only funnel glass. Electronics Scrap Plastics-ESP Loose Plastics-POSttonsumer Sources ESP-1 ESP-2 ESP-3 ESP-4 Loose Mixed Plastics Loose N Plastics Loose Computer Plastics Loase Single•Resin Plastics Material Plastic parts from electrical Plastic parts from electrical Plastic parts from electrical Plastic parts from electrical - and electronic products and electronic products and electronic products and electronic products Source Residential or commercial Residential or commercial Residential or commercial Residential or commercial Material origin All >90%by weight from >90%by weight from >90%by weight single target disassembled N sets disassembled PC monitors, resin type CPUs, printers, fi keyboards Plastic resin type All All All ABS, PC, PC/ABS, HIPS, PPE, PVC Bulk density Varies Varies Varies Varies Size N/a N/a N/a N/a Shipping Gaylords/or larger bulk Gaylords/or larger bulk Gaylords/or larger bulk Gaylords/orlarger bulk Guallty Color All All Light or mixed Light or mixed Haz mat No haz mat or med waste No haz mat or med waste No haz mat or med waste No haz mat or med waste Moisture No free-flowing liquid Nofree-flowingliquid Nofree-flowingliquitl No free-flowing liquid Flame retardant Fr or non-fr Fr or non-fr Fr ornon-fr Fr ornon-fr Cordamination: Painted/coated <2%of mat'Is by weight <2%of mat'Is by weight <2%of mat'Is by weight <2%of mat'Is by weight Laminated <2%of mat'IS by weight <2%of mat'IS by weight q%of mat'Is by weight <2%of mat'IS by weight Metals <10%of mat'Is by weight <10%of mat'Is by weight <t0%of mat'IS by weight <10%of mat'Is by weight Oirt <2%of mat'Is by weight <2%of mat'Is by weight <2%of mat'Is by weight ~ 2%of mat'IS by weight Total non-plastics X10%cumulative by weight <10°Po cumulative by weight <70%cumulative by weight <10%cumulative by weight -SCRAP SPECIFICATIONS CIRCULAR 2007 ~'_ ~ ~ r -. Culd¢lne3forEectmnlts$cap - ! Loose Plastlcs-Postlndustrlal Sources ESP-5 ESP-6 ESP-7 ESP-8 Loose Mixed Plastics Loose TV Plastics Loose Computer Plastics Loose Single-Resin Plastics Material Plastic parts tram electrical Plastic Darts from electrical Plastic pails from electrical Plastic parts from electrical and electronic products and electronic products and electronic products and electronic products Source Manufacturers, suppliers Manufacturers, suppliers Manufacturers, suppliers Manufacturers, suppliers and/or molders and/or molders serving and/or molders serving PC b and/or molders TV manufacturers peripherals manufacturers Material origin Rejected parts, excess Rejected parts, excess Rejected parts, excess Rejected parts, excess inventory, or other inventory, ar other inventory, or other inventory, or other plastic scrap plastic scrap plastic scrap plastic scrap Plastic resin type All All All Minimum95%byweightoneof the following target resins: ABS, PC, PC/ABS, HIPS, PPE, or PVC Bulk density Varies Varies Varies Varies Size N/a N/a N/a N/a Shipping Gaylords/or larger bulk Gaylords/ or larger bulk Gaylords/ or larger bulk Gaylords/or larger bulk Quality Color All ~ All Light or mixed Light or mined Haz mat No haz mat or med waste No haz mat or med waste No haz mat or med waste No haz mat or med waste Moisture Nofree-flowing liquid No free-Flowing liquid Nofree-flowing liquid No free-flowing liquid flame retardant k or non~fr Fr or non-fr Fr or non-fr Fr or non-fr Contamination: Painted/coated 0°h of mat'Is 6y weight 0°h of mat'IS by weight 0%of mat'Is by weight 0%of mat'Is by weight Laminated 0°~ of mat'Is by weight 0%of mat'IS by weight 0%of mat'Is by weight 0%of mat'Is by weight Metals <2%of mat'Is by weight <2%of mat'Is 6y weight <2°h of maPls by weight <2%of mat'IS by weight Dirt r 2%of mat'Is 6y weight <2%of mat'IS by weight ~ 2W° of mat'Is by weight <2%of mat'IS by weight Total non-plastics <2%cumulative by weight <2%cumulative by weight <2°h cumulative by weight <2°h cumulative by weight Baled Plastlcs-Postconsumer Sources ESP-9 ESP-10 ESP-11 ESP-12 Baled Mixed Plastics Baled TV Plastics Baled Computer Plastics Baled Single•Resin Plastics Material Plastic parts from electrical Plastic parts from electrical Plastic parts from electrical Plastic parts from electrical and electronic products and electronic products and electronic products and electronic products Source Residential or commercial Residential or commercial Residential or commercial Residential or commercial Material origin All >90%by weight from >90%by weight from >90%by weight single target dissembled TV sets dissembled PC monitors, resin type CPUs, printers. & keyboards Plastic resin type All All All ABS. PC, PC/ABS. HIPS. PPE, PVC Bulk density Minimum201bs/cuff Minimum201bs/cuft Minimum201bs/cu ft Minimum201bs/cuft Size Maximum dimension 72" Maximum dimension 72" Maximum dimension 72" Maximum dimension 72" Shipping Strapped Strapped Strapped Strapped Ouallty Color Light or mixed light or mined Light or mined Light or mixed Haz mat No haz mat or med waste No haz mat or med waste No haz mat or med waste No haz mat or med waste Moisture No free-flawing liquid Nofree-flowing liquid No free-flowing liquid Nofree-flowing liquid Flame retadant Fr or non-fr Fr or non-fr Fr or non-fr Fr or non-fr Contamination: Painted/coated ~2%of mat'IS by weight <2%of mat'Is by weight <2°k of mat'Is by weight ~2No of mat'IS by weight Laminated <2%ofmat'Isbyweight <2°h ofmat'Isbyweight <2%ofmat'Isbyweight <2%ofmat'ISbyweight Metals <10%of mat'IS by weight <10%of mat'Is by weight <10%of mat'Is by weight <10%of mat'IS by weight Dirt <2%of mat'Is by weight <2%of mat'Is by weight <2%of mat'Is by weight <2%of mat'Is by weight Total nan-plastics <10°h cumulative by weight <70%cumulative by weight <10%cumulative by weight <10%cumulative by weight °. Gndehnea fdr Petals Tranaadions ~-:_ _,.° ''-m - = ~ INSTITUTE OFSCRAP RECYCLING INDUSTRIES INC e. Place seals on all container doors and indicate seal num- bers ondocumentation. t. Material and packages should be properly stowed and braced to prevent movement during shipment. g. Be aware that someone at the delivery point will have to unload the shipment. Pay particular attention to door areas to assure that material is loaded safely. Proper care should betaken to insure that the material can be unloaded in a safe and expedient manner. Buyer's Responsibility: a. Container and chassis should be drop-weighed, if possible, both empty and loaded. d. Dimensions of car (40 ft., 50 ft., 60 ft., etc.) e. Determine if rail car capacity meets minimum weight specified on contract. C. Export Shipments 1. Container: a. Type of container, i.e. closed, open-top, flat rack, Hi-cube, etc. b. Size of container 20 ft., 35 ft., 40 ft., 45 ft., etc.) c. Determine if container capacity meets minimum weight specified on contract. 2. Breakbulk b. Carefully check shipment advices and compare package count, seal numbers, weights. c. Prior to unloadfnq, if a significant* weight difference is apparent, the Seller should be notified promptly and, if requested, another weight should be taken to determine if spillage or theft might have occurred. Seller should be giv- en opportunity to appoint surveyor or representative to verify weights. d. Aker unloading, promptly advise Seller of any significant* differences between advised and actual weights, segrega- tion, classification or quality. (Note: Refer to Part IV of the circular for recommended procedures in handling quality problems) e. Container should be completely unloaded including any spilled material which should be picked up, weighed and identified as spilled from original containers. Buyer should cooperate in every way to help minimize losses. *Fef purposes of this section, the meaning of the word "signifi- cant" shall be determined by agreement between Buyer and Seller, depending on the commodities and their values. Part 111: Transportation Guide The mode and type of conveyance should be specified in the contract. If it has not been, then it is important that Buyer and Seller agree upon the mode and type to be used. These guide- lineswill assist in determining the appropriate means of trans- portation to employ. A. Mode-Ttuck/Trailer 1. Type: a. Dump b. Removable sides c. Van-open or closed d. Dimensions of unit (20 ft., 40 ft., etc.) e. Determine if truck/trailer rapacity meets minimum weight specified on contract. B. Mode-Rail Car 1. Type: a. Box tar or gondola b. Size of door opening, i.e. single or double door Part IV: Rejections-Downgrades-Claims A brief explanation of these items will help one understand and implement the procedures recommended in this section. ReJectfons: Rejections can occur when a Buyer refuses to accept a shipment of material that does not conform to the description specified in the contract. Usually in such cases, the Buyer cannot utilize the material and the Seller is asked to remove the material from the Buyer's place of delivery. A rejection tan occur prior to unloading, but often the cause of the problem cannot be determined until the material has been off loaded and graded. Any part, or all, of the shipment may be subject to rejection. Downgrades: Downgrades can occur when all, or part, of the material in a shipment is not in conformity with the description specified in the contract. Often, in such cases, the Buyer can utilize the material and is willing to accept delivery of the material, subject to a price commensurate with its value. Claims: This term is used mostly in export-import movements, and is used generically to encompass both rejections and downgrades, as well as weight shortages. Strict adherence to contract terms can minimize the common causes of these difficulties. However, if a problem arises, it should be given prompt attention and settlement should be attempted as quickly as is practical. It is essential that both parties cooper- ateand keep communications open to minimize expenses and to preserve the relationship. Negotiations should not be conflicting but mutually beneficial and fair. Listed below are some recom- mended steps to be taken when a problem arises. Domestic Shipments Buyer's Responsibilities: a. In the event of a rejection Buyer must notify Seller imme- diately by telephone or telex. If Seller fails to respond with- intwo business days, Buyer may return material in most prudent manner. Subject to contract provisions, Buyer should promptly advise Seller concerning replacement of rejected material. b. In the event of a downgrade Buyer must notify Seller immediately by telephone or telex and afford Seller an opportunity to inspect the material prior to its use. If mate- rial is to be inspected by Seller orhis/her representative, Buyer should agree to a mutually convenient time to do so. c. Special type D.F., Hi-Cube, etc. =SCRAP SPECIFICATIONSCIRCULARJ2007 "` Gndelines for Nelals Transactions ~~-~ c. Buyer must give Seller option of removing material if he/she does not agree to downgrade. (All costs of unload- ingand reloading are for Seller's account.) Seller's Responsibilities: a. In the event of a rejection Seller should respond promptly and advise Buyer of his/her intentions. Seller must reply within two business days. Subject to contract provisions, he/she must advise Buyer promptly concerning replace- ment of rejected material. b. In the event of an unacceptable downgrade Seller must advise Buyer within two business days if he/she wishes to inspect material and agree upon a mutually convenient time to do so. Export-Import Shipments Buyer's Responsibility: a. In the event of a claim, time is of the essence and notifica- tion should be given to Seller within a reasonable period of time after arrival of vessel in receiving port. b. In the event of a claim, the material should be held intact until agreement has been reached. The acceptable portion of the material may be consumed and/or arrangements may be made to sample a portion of material, i.e.,10-25% with balance held intact pending resolution of claim. Seller's Responsibility: a. In the event of a claim, Seller should respond to Buyer's notification promptly by telephone, telex, wire, or cable. c. If Seller wishes to remove downgraded material from Buy- er's delivery point, he/she must advise Buyer promptly. (All costs of unloading and reloading are for Seller's account.) b. When a claim settlement has been agreed upon, terms of settlement must be followed promptly. ISRI Arbitration Service ISRI established an arbitration service as a means to enable members to use arbitration to resolve disputes. ISRI arbitration is a voluntary procedure and must be agreed upon by both parties in the dispute. It is not required that both parties to the dispute be ISRI members. The complete procedure for arbitration is set forth in ISRI's "Rules for Arbitration;' which are available from Association headquarters in Washington, D.C. The rules contain the neces- saryform that must be completed to initiate arbitration. ISRI treats all filings, awards, and proceedings as confidential. 4. The arbitration procedure usually includes a hearing, at which time the parties involved are required to appear, present their respective cases, and be available for ques- tioning by the arbitrator(s). All physical evidence (con- tracts,correspondence, relevant comments, etc.) maybe required to be submitted in advance to the arbitrators. A party in the arbitration may be accompanied by counsel but must inform the other party in advance and receive permission from the arbitrators. Witnesses may also be called to an arbitration hearing. There is also an optional procedure for conducting the arbitration without an oral hearing. The rules are highlighted below: 1. Anyone may propose arbitration in a dispute, though at least one party must be a member of the association. Both parties must agree to the arbitration by signing a "Submis- sion to Arbitrate" form and agreeing to abide by the appli- cable Arbitration Rules. 2. A panel of arbitrators has been established by the associa- tion.The arbitrators serve without compensation, except for reasonable expenses. The arbitration parties must draw their arbitrators from the panel. A maximum of three arbi- trators can be issued in any proceeding; the parties are encouraged to use a single arbitrator. 3. There is a specific schedule of fees listed in the "Rules for Arbitration." Each party must deposit with the association in advance $500 plus $500 for each arbitrator. The total deposit for each party thus is either $1,000 or $2,000, depending on whether one arbitrator is to be used or three. A portion of the fee is refundable if not required to defray arbitrators' costs. The arbitrators may require the losing party to reimburse the prevailing party far its share of these costs. 5. An award by the arbitrator(s) will be made promptly, within 20 days after hearings have been completed or final briefs submitted. The award is made in writing. 6. The rules state that the parties to the dispute shall be deemed to have consented that a judgment upon the award be entered in any court having jurisdiction over an action to enforce the award. Members who wish to provide an automatic basis for the set- tlement of any disputes arising from a transaction are encour- aged to provide in their contracts that the ISRI Arbitration Procedure shall prevail in the event of any ensuing controversy and that each party will take all necessary steps to initiate such arbitration. Members are urged to obtain and carefully read the "Rules for Arbitration" before proceeding. For more information, contact Steve Hirsch, 202/662-8516 or email stevehirsch~isri.org. EXHIBIT C EXAMPLES UNDER REGIONAL RECYCLABLE PROCESSING AGREEMENT EXAMPLE A' Denton Curbside: 500 Tons Denton Commercial OCC: 300 Tons Denton Collection Sites: 100 Tons Total Tons: 900 Tons The City would receive $5.00/per ton for the City Curbside Collected Material ($2,500) because the Total Tons Delivered to the MRF for that calendaz month aze between 0 and 1000; see chart in 1.09(a). Additionally, the City would receive either 75% or 60% (depending on whether the tons are clean or unprocessed) of the OBM value for that month depending on the type of material (i.e., mixed paper, steel cans, etc.) for each of the Denton Commercial OCC and Denton Collection Site tons; see chart in 1.09(6). EXAMPLE B' Denton Curbside: 500 Tons Denton Commercial OCC: 300 Tons Denton Collection Sites: 200 Tons Other cities'Curbside Collected Material: 400 Tons Other Commercial Recyclables collected by Pratt Recycling: 200 Tons Total Tons: 1,600 Tons The City would receive $12.50/per ton for the City Curbside Collected Material ($6,250) because the "Total Tons" Delivered to the MRF for that month aze more than 1,500 and less than 2,000 tons; see chart in 1.09(a). The City would also receive $5/per ton for the other cities' Curbside Collected Material($2,000). Additionally, the City would receive either 75% or 60% (depending on whether the ton is clean or unprocessed) of the OBM value for that month depending on the type of material (i.e., mixed paper, steel cans, etc.) for each of the Denton Commercial and Denton Collection site tons; see chart in 1.09(6). The City would not be paid a rebate on the "other" cities' commercial recyclables collected by Pratt Recycling, but the Other Commercial Recyclables collected by Pratt Recycling would be used to determine the amount of Total Tons Delivered to the MRF. -20- STATE OF TEXAS COUNTY OF DENTON LEASE AGREEMENT This Lease Agreement (the "Lease Agreement") is made and entered into effective as of the Effective Date, as set forth below, by and between THE CITY OF DENTON, TEXAS (hereinafter sometimes referred to as "LESSOR" and/or "the City"), and VISY RECYCLING, INC. d/b/a PRATT RECYCLING ("LESSEE" and/or "Pratt Recycling"). WHEREAS, LESSOR owns the City's Solid Waste Services Site (the "Site"), located in the vicinity of 1100 Mayhill Road, Denton, Texas and operates a landfill on the Site (the "Landfill"); and WHEREAS, the City desires to lease to Pratt Recycling a six (6) acre tract of property located at the Site, which property is more specifically outlined on Exhibit 1 (hereinafter the "Lease Premises"); and WHEREAS, Pratt Recycling desires to lease the Lease Premises from the City for purposes of construction and operation of a materials recovery facility (the "MRF"); and NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and for good and valuable consideration, receipt and sufficiency of which aze acknowledged, LESSOR/the City and LESSEE/Pratt Recycling, intending to be legally bound, agree as follows: ARTICLE 1 PREMISES 1.1 Lease Premises. LESSOR hereby leases and lets unto LESSEE, and LESSEE hereby leases and lets from LESSOR the Lease Premises, which is that certain tract or parcel of land containing six (6) acres, more or less, located at the Site, outlined in red on Exhibit 1 attached hereto and made a part hereof and being more fully described on Exhibit 2 attached hereto and made a part hereof. ATLANTA:4941459.6 1.2 Use of Premises. The Lease Premises are to be occupied and used by LESSEE for the handling, processing, storage of "Recyclable Materials," as defined in that certain Regional Recyclables Processing Agreement, between the City and Pratt Recycling, dated October 2, 2007 (the "RRP Agreement"). In the event LESSEE for any reason desires hereafter to substantially modify and/or substantially change its use of any of the Lease Premises, the nature and terms of such modification and change must be approved in writing by LESSOR and this Lease Agreement must be amended in writing to authorize the same. 1.3 Lessee Construction on Lease Premises. LESSEE shall have the right to construct improvements on the Lease Premises and this right shall continue in effect throughout the teen of this Lease Agreement. LESSEE will, as a consideration for LESSOR'S obligations set forth herein and this Lease Agreement, construct, at LESSEE'S cost, a building of approximately 40,000 square feet to be used as a Materials Recovery Facility for processing "Recyclable Material" (as defined in the RRP Agreement). Throughout the term of this Lease Agreement, LESSEE shall have the right to alter, modify, remodel and demolish any improvements LESSEE has constructed and owns on the Lease Premises; provided, however, if LESSEE exercises its option to demolish the building, then LESSOR is fully excused from the obligation to purchase the building pursuant to Section 5.6 of this Lease Agreement. LESSEE agrees to provide to LESSOR a complete set of plans and specifications detailing each improvement which LESSEE proposes to construct on the Lease Premises prior to commencing any construction. The plans and specifications will be reviewed by LESSOR only for compliance with the municipal code of Denton, Texas. LESSOR must approve, within fifteen (15) days of the submittal in writing, the proposed improvements which LESSEE plans to construct on the Lease Premises which approval will not be unreasonably withheld or delayed. It is understood that this approval will be only the review of the Solid Waste Department, and will not be any other City required approval that may apply. Said approval shall be deemed granted by the Solid Waste Department only unless specific objections are provided to LESSEE within said fifteen (1 S) day period. No approval of LESSOR shall be required with respect to any modifications or alterations or remodeling of the interior of any of the improvements. All improvements constructed or placed on the Lease Premises by LESSEE -2- ATLANTA:4941459.6 shall remain the property of LESSEE during the term of this Lease Agreement and any renewal or extension hereof. All real property fixtures shall remain the property of LESSEE, and upon the termination of this Lease, any real property fixtures shall be removed by LESSEE with no damage to the Lease Premises. Upon termination of this Lease, the Lease Premises shall be free and clear of recyclable or recycled materials and shall be broom-clean. l.4 Easements. LESSOR shall provide to LESSEE, when reasonably required by LESSEE in the conduct of its business on the Lease Premises, but in no event later than completion of construction, at no additional consideration, nonexclusive rights of way or easements it has the right to grant over, across and through the Site, including ingress and egress onto the Lease Premises available from one or more points on the west side of the Lease Premises, to the City's perimeter private road leading to the intersection of Spencer Road and Mayhill Road in Denton, Denton County, Texas, which are necessary for the operation of LESSEE'S facilities on the Lease Premises as follows: (a) For connection of water and sanitary sewer facilities to the boundary of the Lease Premises; (b) For connection of telephone, electric and gas lines, as approved by the appropriate utility companies, to those installed at or upon the Lease Premises; and (c) For connection of streets and/or roads for vehiculaz traffic to roads immediately adjacent to or neaz the Lease Premises. In addition, LESSOR shall furnish to LESSEE, at no additional cost, additional reasonable, necessary, nonexclusive rights of way or easements over, across and through LESSOR'S unleased property at the Site which LESSOR has the right to grant and which aze reasonably necessary for the operation of the MRF. All rights of way or easements granted or to be granted shall be located in such a way as to not unreasonably interfere with the orderly utilization of the Landfill. 1.5 Signs. LESSEE shall be entitled to erect, install, and maintain on the Lease Premises identification and advertising signs appropriate to its business, provided, however, that all such -3- ATLANTA:4941459.6 signs at all times shall be subject to the prior written approval of LESSOR as to location, size, shape, color and content. Said approval shall not be unreasonably withheld. 1.6 Lien Claims. LESSEE hereby covenants to unconditionally indemnify LESSOR from and against and hold LESSOR harmless from any and all lien claims of any nature whatsoever arising out of or in any manner connected with the construction, installation, erection, maintenance, repair, occupancy, use and/or operation of any improvements, facilities and/or equipment of LESSEE or any third person on or about the Lease Premises by or at the direction of or with the permission of LESSEE, and LESSEE further agrees that it shall, in the event any such liens are filed, forthwith effect their removal and/or satisfaction, provided, however, LESSEE shall have the right, at its sole cost and expense and after having given LESSOR prior written notice of its intent to do so, to contest by appropriate legal proceedings diligently conducted in good faith, the amount, validity or application, in whole or in part, of any such lien or liens, provided (i) such proceedings shall suspend the collection of such lien(s); (ii) neither the Lease Premises nor any rent therefor, nor any portion of same, would be in danger of attachment, forfeiture, loss or similaz consequence; and (iii) that LESSEE shall first famish security to bond said lien off of the Lease Premises. 1.7 Inspection and/or Repair of Lease Premises. LESSEE shall at all times maintain the Lease Premises including all improvements thereon in good condition, and LESSEE shall be responsible for all maintenance, repair and replacement of the Lease Premises and all improvements thereon except for repairs or replacements caused by the acts or negligence of LESSOR, its agents or employees. 1.8 Warranty. LESSOR represents and warrants that it owns the Lease Premises and that LESSOR is fully authorized to enter into this Lease Agreement with LESSEE. In addition, LESSOR represents and warrants that it has not granted any mortgages or pledges of the property leased hereunder. It is understood and agreed that any mortgage, pledge, or other encumbrance of the property leased hereunder shall be subordinate to this Lease Agreement and that any such mortgage, pledge, or other encumbrance shall contain specific provisions providing that all of -4- ATLANTA:4941459.6 LESSEE'S improvements or appurtenances on the property leased hereunder, as well as any products or other contents in or on said improvements or appurtenances, aze excluded from such mortgage, pledge or encumbrance, and that LESSEE hereunder retains the right to remove any and all such improvements or appurtenances, as well as any products or other contents in or on said improvements or appurtenances, in accordance with the terms of this Lease Agreement, and that in the event of a foreclosure, LESSEE shall have the right to continue to occupy the Lease Premises pursuant to the terms of this Lease Agreement so long as LESSEE is not in default hereunder. ARTICLE 2 LEASE TERM 2.1 Primary Term. The Primary Term of this Lease Agreement shall be for a term of twenty (20) yeazs from and after the Effective Date of this Lease Agreement, unless sooner terminated as provided herein. As provided in Section 5.1, the term of this Lease Agreement shall end concurrently with the RRP Agreement. The "Effective Date" of this Lease Agreement shall be latter of the date on which LESSEE executes this Lease Agreement and the date on which LESSOR executes this Lease Agreement. 2.2 Renewal Terms. Provided LESSEE is not in default and this Lease Agreement is otherwise in full force and effect, this Lease Agreement may be extended for two (2) additional terms often (10) years each. The decision to extend the Lease Agreement must be a mutual decision made by both LESSOR and LESSEE. Negotiations to extend this Lease Agreement aze to begin approximately one (1) yeaz before the end of the Primary Term or the First Renewal Term (as the case may be) of this Lease Agreement. 2.3 Assignment of Lease Agreement LESSEE shall not assign, sublet, mortgage or pledge this Lease Agreement or any interest herein or in the Leased Premises or any part thereof, nor shall any assignment, sublease or transfer of whatever kind of any interest of LESSEE herein by operation of law or by reason of LESSEE'S bankruptcy become effective, without the prior written consent of LESSOR, which -5- A'I'LANTA:494I459.6 consent shall not be unreasonably withheld; provided that the City's refusal to give the City's consent to a potential assignee who is not as creditworthy as Pratt Recycling shall be deemed to be reasonable. Notwithstanding the foregoing, LESSEE shall have the right to assign this Lease Agreement or sublet the Lease Premises to an entity that is controlled by, or under common control with LESSEE, or to a third-party entity that will construct and/or own the MRF and lease it to Pratt Recycling so long as Pratt Recycling remains fully and primarily liable for all of its obligations under this Lease Agreement and the RRP Agreement. ARTICLE 3 RENTALS 3.1 Rentals. The rental for the Lease Premises shall be TWELVE CENTS ($.12) per squaze foot per year for the first five years of the Lease Term. The first monthly rental payment will be due on or before the first day of the first month following the date on which Pratt Recycling receives all of the authorization and permits from the City of Denton and County of Denton to construct the building (the "Permit Date") with equal payments to be made on the same day of each month thereafter throughout the term of the Lease; subject to the terms of rental adjustment (indexing) reserved in this pazagraph. From the Permit Date until the eazlier of the "Commencement Date" (as defined in the RRP Agreement) or September 1, 2008, the rent for the Lease Premises will be reduced by 50%. The rental rate set forth in the First sentence of this Section 3.1 is for purposes of the Lease and shall be defined as the "Initial Base Rental Payment." Such Initial Base Rental Payment will be the rental due under the Lease for yeazs one (1) through five (5) of the initial twenty (20) year term of the Lease (the "Primary Term"). Prior to the commencement of the first (1st) day of the sixth (6th) year of the Primary Term, and prior to the commencement of each additional five (5) year period thereafter throughout the entire term of the Lease, including any renewal terms (a "Renewal Term"), the rental to be paid by LESSEE to LESSOR under the Lease shall be subject to adjustment based upon adjustments in the consumer price index, as hereinafrer defined. The initial base rental payment shall be adjusted upward, downwazd, or unchanged prior to the commencement of the sixth (6th) yeaz of the Lease to conform to the "Consumer Price Index" now known as U.S. Depaztment of Labor, Bureau of Labor Statistics Consumer Price Index, U.S. Cities Average, all items (1967 equal 100). The adjustment at the -6- ATLANTh49414i9.6 beginning of yeaz six (6) of the Lease will be accomplished by multiplying the initial base rental payment by a fraction, the numerator of which shall be such index as of the most recent date published prior to the date of adjustment and the denominator of which shall be the most recently published index as of the Commencement Date. The adjustment for each subsequent five (5) year period will be calculated in a similaz manner except that rather than using the initial base rental payment as the base rentals from which adjustments will be made, the rental figure for the then current year will be substituted for such initial base rental payment. In no five (5) year period may the rental be increased or decreased more than twenty-five percent (25%) of the rental applicable during the five (5) year period immediately preceding the five (5) year period for which adjustment is to be made. If the index above referred to shall be discontinued, the parties hereto shall attempt to agree upon a substitute index or formula. In the event of dispute between the parties as to the amount of any adjustment, the rates shall be established through the dispute resolution procedures as described in Article VI of this Agreement. 3.2 Taxes. LESSEE agrees to pay all sales and/or use taxes and/or ad valorem assessments and/or taxes which may be legally made upon and/or levied and/or assessed against LESSEE'S property on the Lease Premises, before the same shall become delinquent; provided, however, LESSEE shall have the right, at its sole cost and expense and after having given LESSOR prior written notice of its intention to do so, to contest by appropriate legal proceedings diligently conducted in good faith, the validity, amount or application, in whole or in part, of such taxes, levies and/or assessments provided (i) such proceedings will suspend the collection of the tax, levy, or assessment; and (ii) the Lease Premises, nor any rent therefrom, nor any portion of it is in danger of seizure, forfeiture, sale, loss or similar consequences. 3.3 Late Charges on Rentals. If any installment of rental due from LESSEE is not received by LESSOR within thirty (30) days of the date upon which it is due, without any notice or demand for payment to LESSEE being necessary; LESSEE will pay to LESSOR an additional sum of five percent (5%) of the overdue rental as a late charge. Acceptance of any late chazge shall not constitute a waiver of -7- ATLANTA:4941459.6 LESSEE's default with respect to the overdue amount, nor prevent LESSOR from exercising any other rights and remedies available to LESSOR. 3.4 No Additional Fees There shall be no additional fees or assessments made by LESSOR for LESSEE'S use or occupancy of the Lease Premises; provided that LESSOR shall remain responsible for any impact, connection or building fees associated with the construction of the building. ARTICLE 4 OPERATIONS 4.l Pollution Control. LESSEE agrees that it shall use its commercially reasonable best efforts to comply with all applicable federal, state and local laws, regulations and common law as they may exist currently or as they may be amended in the future, pertaining to protection of the environment or human health and safety at the MRF and/or in the vicinity of any of its operations or activities that may be permitted hereunder. 4.2 Compliance with Environmental Laws and Indemnification. During the term of this Lease Agreement, LESSEE shall comply with all applicable federal, state and local laws, regulations and common law, as they may exist currently or as they may be amended in the future, pertaining to protection of the environment or human health and safety at the MRF. LESSOR warrants and represents that at the commencement of this Lease Agreement, that to its knowledge there is no Hazardous Substance (as defined herein below) including any petroleum, petroleum product, or other types of hydrocarbons in or on the Lease Premises in contravention of any federal, state or local laws, regulations or common law pertaining to protection of the environment or human health and safety. Notwithstanding any provision in this Lease Agreement to the contrary, it is expressly understood and agreed that the LESSEE does not assume or agree to be responsible for, and LESSOR hereby agrees, only to the extent permitted by applicable law, to indemnify, defend and hold LESSEE, its officers, employees, contractors, agents, customers, licensees, invitees and/or -8- ATLANTA:4941459.6 visitors and any other person for or on whose behalf LESSEE is liable, harmless from and against any and all claims, obligations, liabilities, costs, expenses (including attorneys fees), losses, suits, fines, penalties or demands, made or sought by or on behalf of any person, firms, corporation or government authority whomsoever, based upon or azising out of any obligation, liability, loss, damage or expense, of whatever nature or kind, contingent or otherwise, known or unknown, incurred under or imposed by any provision of federal, state or local law or regulation, or common law, pertaining to protection of the environment or human health and safety in or on the Lease Premises prior to the Effective Date. Notwithstanding any provision in this Lease Agreement to the contrary, it is expressly understood and agreed that, except as provided in the RRP Agreement, the LESSOR does not assume or agree to be responsible for, and LESSEE hereby agrees to indemnify, defend and hold LESSOR, its officers, employees, contractors, agents, customers, licensees, invitees and/or visitors and any other person for or on whose behalf LESSOR is liable, harmless from and against any and all claims, obligations, liabilities, costs, expenses (including attorneys' fees), losses, suits, fines, penalties, or demands, made or sought by or on behalf of any person, firm, corporation or government authority whomsoever, based upon or arising out of the handling, storage or disposal of Hazazdous Substances by LESSEE, LESSEE'S agent or anyone on or about the Leased Premises by or at the direction of LESSEE or with the permission of LESSEE during the term of this Lease Agreement. _ For purposes of this Lease Agreement, the term "Hazazdous Substance" or "Hazardous Substances" means that term as defined in Section 9601(14) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), but it also includes the term "Regulated Substance" as defined in Section 6991(2), and the term "Hazazdous Waste" as defined in Section 6903(5), of the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901, et seq. ("RCRA"), including all regulations issued pursuant to any of the above statutes, as well as any other contaminant, oil, petroleum, petroleum product or byproduct, radioactive material or byproduct and any unsafe, noxious, toxic or hazardous substance or similar material regulated as a hazazdous substance under any applicable state, federal or local law, and any other applicable -9- ATLANTA:4941459.6 environmental, land use or similaz act, statute or regulation existing as of the date of this Lease Agreement or thereafter. The indemnifications provided by this article shall specifically and reciprocally cover, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by any federal, state or local governmental agency or political subdivision or other third party. The foregoing environmental indemnity provisions shall survive for a period of five (5) yeazs afrer the expiration or termination of this Lease Agreement and any renewals hereof. 4.3 Compliance with Laws and Regulations. LESSEE's exercise of such rights and/or privileges as may be extended it hereunder shall at all times be in full compliance with all applicable laws, rules, and regulations, including safety regulations, of the City of Denton, Texas, the State of Texas, the United States, and other governmental authorities now or hereafter having jurisdiction thereof and/or any of their duly empowered agencies and/or instrumentalities. A copy of all building permits, licenses, and similar authorizing documents will be provided promptly to the LESSOR. 4.4 Lessee Iusurauce. For the term of this Lease Agreement and any renewal thereof, LESSEE will maintain, at its own expense, the following insurance coverage: (a) Worker's Compensation Insurance in accordance with statutory requirements, and Employer's Liability Insurance with limits of not less than $1,000,000 for each accident; (b) Comprehensive General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence, and not less than $2,000,000 in the aggregate; and with property damage limits of not less than $500,000 for each occurrence, and not less than $1,000,000 in the aggregate; (c) Automobile Liability Insurance with bodily injury limits of not less than $1,000,000 for each person and not less than $2,000,000 for each accident; and with property damage limits of not less than $500,000 for each accident; and -10- ATLANTA:4941459.6 (d) Casualty property insurance on the MRF in an appropriate amount reasonably determined by LESSEE, which amount shall take into account the construction costs of the MRF and other relevant factors. LESSEE shall provide LESSOR with a certificate evidencing the insurance required hereunder together with evidence of premium payment. All such policies of insurance shall require that LESSOR and LESSEE be given at least thirty (30) days prior notice of any modification, termination and/or cancellation of coverages. The insurance policies described in (b) and (c) above shall name LESSOR as an additional insured party. All insurance policies belonging to LESSEE shall be issued through companies licensed to do business in the State of Texas by the State Insurance Commission or any successor agency, which companies have a rating with A.M. Best Rate Carvers of at least an "A--" or higher. The insurance requirements set forth in this Section 4.4 aze defined as the "Initial Insurance Requirements." Such Initial Insurance Requirements will be the requirements under the Lease for the "Primary Term" (as defined in Section 3.1 of this Agreement). Prior to the commencement of the first (1st) day of the sixth (6th) yeaz of the Primazy Term, and prior to the commencement of each additional five (5) yeaz period thereafter throughout the entire term of the Lease, including any "Renewal Term", the insurance requirements for that period shall be subject to adjustment based upon adjustments in the consumer price index, as hereinafter defined. The Initial Insurance Requirements shall be adjusted prior to the commencement of the sixth (6th) year of the Lease to conform to the "Consumer Price Index" now known as U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index, U.S. Cities Average, all items (1967 equal 100). The adjustments at the beginning of year six (6) of the Lease will be accomplished by multiplying the Initial Insurance Requirements by a fraction, the numerator of which shall be such index as of the most recent date published prior to the date of adjustment and the denominator of which shall be the most recently published index as of the Commencement Date. The adjustments for each subsequent five (5) year period will be calculated in a similaz manner except that rather than using the Initial Insurance Requirements as the base insurance requirements from which adjustments will be made, the insurance requirements for the then current yeaz will be substituted for such Initial Insurance Requirements. In no five (5) yeaz period may the insurance requirements be increased or decreased more than twenty-five percent (25%) of the insurance requirements applicable during the five (5) year period immediately -11- ATLANTA:4941459.6 preceding the five (5) year period for which adjustments are to be made. If the index above referred to shall be discontinued, the parties hereto shall attempt to agree upon a substitute index or formula. In the event of dispute between the parties as to the amount of any adjustment, the rates shall be established through the dispute resolution procedures as described in Article VI of this Agreement. ARTICLE 5 TERMINATION S.l Termination. This Lease Agreement shall terminate pursuant to Article V of the RRP Agreement. Upon termination, LESSEE shall be entitled to remove all personal property from the building and any equipment that LESSEE has installed in the building, shall remove all recyclables and recycling materials from the Lease Premises and shall thereafter quit and surrender the Lease Premises to LESSOR in broom-clean condition and LESSOR shall accept the Lease Premises "as is". 5.2 Events of Default. The following shall be "Events of Default" under this Lease Agreement and the terms "Event of Default" or "Default" shall mean whenever they are used in this Lease Agreement, any one or more of the following events: (a) The insolvency, assignment for the benefit of creditors, adjudication as a bankruptcy of LESSEE or the appointment of a receiver for substantially all of the LESSEE'S property and/or LESSEE'S interest in this Lease Agreement; (b) The issuance of execution against LESSEE'S interest in this Lease Agreement or any legal process which by operation of law would cause LESSEE'S interest in this Lease Agreement to pass to any person other than LESSEE or its successor assignee or sublessee pursuant to Article 2.3; (c) The failure or refusal of LESSEE to pay or cause to be paid any lease rental, charge and/or assessment hereunder or any installment thereof when due and the continuance of such failure for a period of sixty (60) days after written notice thereof; _12_ ATLANTA:4941459.6 (d) The failure or refusal of LESSEE to perform any agreement, covenant, condition, obligation and/or undertaking herein contained or required by operation of law and/or to observe or comply with any of the terms provisions or conditions of this Lease Agreement, and the continuance of such for a period of sixty (60) days after written notice thereof; (e) The failure of LESSOR in the observance or performance of any material term, obligation or covenant required to be performed by LESSOR under this Lease Agreement or by operation of law, shall constitute a default by LESSOR of the Lease Agreement; (f) The LESSOR or any mortgagee under any mortgage covering the Lease Premises shall have given prior written notice to LESSEE that such mortgagee is the mortgagee under such a mortgage and such notice includes the address at which notice to such mortgage and such notice includes the address at which notice to such mortgagee may be sent, then LESSEE agrees to give such mortgagee notice simultaneously with any notice given to LESSOR to correct any default of LESSOR as hereinabove provided. Further, LESSEE agrees that the mortgagee shall have the right, within sixty (60) days after receipt of said notice, to correct or remedy such default before LESSEE may take any action under this Lease Agreement by reason of such default. 5.3 Cancellation. If any Default shall occur and continue unremedied or uncorrected for a period of sixty (60) days after LESSOR shall have given LESSEE notice in writing specifying such Default, then at the written option of LESSOR this Lease Agreement and all LESSEE's interests and rights hereunder shall immediately cease and terminate; provided, however, in the case of a Default occumng under Article 5.2 which does not endanger or impair or threaten to endanger or impair LESSOR and which is remediable but will reasonably require in excess of sixty (60) days to remedy, LESSEE shall, upon receipt of notice of Default from LESSOR, have notified LESSOR of the probability of such delay and undertake to remedy such Default with due diligence, then termination shall be stayed only for so long as LESSEE in good faith continues its best efforts to remedy such Default without unnecessary delay and with due diligence. If any Default shall occur and continue unremedied or uncorrected for a period of sixty (60) days after LESSEE shall have given LESSOR notice in writing specifying such Default, then at the written option of LESSEE this Lease Agreement and all LESSOR'S interests and rights hereunder shall immediately cease and terminate; provided, however, in the case of a Default occumng under Article 5.2 which does not endanger or impair or threaten to endanger or -13- ATLANTA:4941459.6 impair LESSEE and which is remediable but will reasonably require in excess of sixty (60) days to remedy, LESSOR shall, upon receipt of notice of Default from LESSEE, have notified LESSEE of the probability of such delay and undertake to remedy such Default with due diligence, then termination shall be stayed only for so long as LESSOR in good faith continues its best efforts to remedy such Default without unnecessary delay and with due diligence. 5.4 Holding Over. If LESSEE shall, with the consent of LESSOR, hold over after the expiration or sooner termination of the term of this Lease Agreement, the resulting tenancy shall, unless otherwise mutually agreed, be for an indefinite period of time on a month-to-month basis. During such month-to-month tenancy, LESSEE shall pay to LESSOR the same rentals, plus an additional payment of holdover rent of twenty-five (25%) percent, per month, payable monthly along with its other rental payment, as set forth herein, unless a different rate(s) shall be agreed upon, and shall be bound by all of the provisions of this Lease Agreement insofaz as they may be pertinent. 5.5 Waiver of Breach of Default --Cumulative Remedies. Waiver by any party of any breach or Default of this Lease Agreement shall not be deemed a waiver of similar or other breaches or Defaults, nor shall the failure of any party to take action by reason of any such breach or Default deprive such party of the right to take action at any time while such breach or Default continues. The rights and remedies created by this Lease Agreement shall be cumulative and nonexclusive of those to which the parties may be entitled pursuant to law. Right of exercise of all such rights and remedies is hereby reserved. The use and availability of one remedy shall not be taken to exclude or waive the right to use of another. In order to entitle any party to exercise any remedy reserved to it in this Lease Agreement, it shall not be necessary to give any notice, other than such notice as is herein expressly required. 5.6 Continuation of Recycling. Pursuant to Section 6.08 of the RRP Agreement, Pratt Recycling may elect to require the City to buy the building containing the MRF (not including the equipment), and if Pratt Recycling so elects to require the City to buy the building, the City shall pay to Pratt Recycling as consideration for the building a sum equal to the "Building Purchase Fee." The Building -14- ATLANTA:4941459.6 Purchase Fee shall be equal to (a) the lesser of (y) Pratt Recycling's actual cost of constructing the building or (z) $2,000,000 multiplied by (b) a fraction, the numerator of which will be twenty (20) minus the number of years (or fraction thereof) the MRF was operated by Pratt Recycling, and the denominator of which will be twenty (20); provided, however, that if Pratt Recycling elects to demolish the building containing the MRF, then the obligation of the LESSOR to pay LESSEE for such building as provided in this Article 5.6, shall terminate and be of no further force and effect. ARTICLE 6 MISCELLANEOUS 6.l Quiet Enjoyment. LESSOR covenants that during the entire term of this Lease Agreement and for so long as LESSEE shall make timely payment of rentals due hereunder and shall perform all covenants on its part to be performed, LESSEE shall and may peaceably and quietly have, hold and enjoy the Lease Premises. In the event of bankruptcy, insolvency, assignment for benefit of creditors, or foreclosure of any mortgage or other encumbrances, by entry or by sale, LESSEE, if it is not then in default, shall peaceably hold and enjoy the Lease Premises for the remainder of the unexpired term of the Lease Agreement upon the same terms, covenants, and conditions as in this Lease Agreement. 6.2 Notices. All notices and other communications required or permitted to be given by any provision of this Agreement shall be in writing and mailed (certified or registered mail, postage prepaid, return receipt requested) or sent by hand or overnight courier, and such notices shall also be sent by facsimile transmission (with acknowledgment received), charges prepaid and addressed to the intended recipient as follows, or to such other address or number as may be specified from time to time by like notice to the Parties. A courtesy copy of such notice or other communication shall also be sent electronically via email to the email addresses provided in the contact information below; provided, however, that such email copies will not constitute Notice as defined in this Section 6.2: -15- ATLANTA:4941459.6 (a) If to the City: City of Denton 215 East McKinney Street Denton, TX 76201 Attention: City Manager Facsimile: 940-349-8596 With a copy to: City of Denton 1527 South Mayhill Road Denton, TX 76208 Attention: Director of Solid Waste Services Facsimile: 940-349-8057 Email: Vance.Kemler@cityofdenton.com If to Pratt Recycling: Pratt Recycling [To be provided] Denton, TX 76208 Attention: Manager Facsimile: [To be provided] Email: [Plant Manager] With a copy to: Pratt Recycling 1169 Oakleigh Street East Point, GA 30234 Attention: VP of Recycling Facsimile: Email: Lhenao@prattindustries.com and Pratt Industries (U.S.A.), lnc. 1800-C Sarasota Pazkway Conyers, GA 30013 Attention: Genera] Counsel Facsimile: 770-3 88-5260 Email: jsevy@prattindustries.com -16- ATLANTA:4941459.6 Any Party may from time to time specify a different address for notices by like notice to the other Party. All notices and other communications given in accordance with the provisions of this Lease Agreement shall be effective upon receipt of the same. 6.3 Substitution of Performance. If LESSEE shall fail to do anything required to be done by it under the terms of this Lease Agreement, except to pay rent and other charges, LESSOR may, after sixty (60) days written notice to LESSEE, at LESSOR'S sole option, do such act or thing on behalf of LESSEE, and upon notification of the reasonable cost thereof to LESSOR, LESSEE shall promptly pay to LESSOR the amount of that cost. In case of emergency, LESSOR may perform any act or do anything reasonably necessary on behalf of LESSEE and upon notification of the cost thereof to LESSEE, LESSEE shall pay said cost to LESSOR within thirty (30) days from the date the LESSEE receives written notice of LESSOR'S claim. If LESSOR shall fail to do anything required to be done by it under the terms of this Lease Agreement, LESSEE may, after sixty (60) days written notice to LESSOR, at LESSEE'S sole option, do such act or thing on behalf of LESSOR, and upon notification of the reasonable cost thereof to LESSOR, LESSOR shall promptly pay to LESSEE the amount of that cost. In case of emergency, LESSEE may perform any act or do anything reasonably necessary on behalf of LESSOR and upon notification of the cost thereof to LESSOR, LESSOR shall pay said cost to LESSEE within thirty (30) days from the date LESSOR receives written notice of LESSEE'S claim. LESSEE may elect to deduct such amounts from any amounts otherwise due LESSOR, which election shall be communicated to the LESSOR with the notification of the cost of the remedy. 6.4 Eminent Domain. If all or a portion of the Lease Premises or all or any portion of LESSOR'S other property comprising the Site shall be taken or sold in any proceeding by public authorities, by means of condemnation, expropriation, appropriation or otherwise be acquired for public or quasi-public purposes, there shall be equitable refund of the rental paid by LESSEE under Article 3.1 above from any award to LESSOR proportionate to the amount taken. Nothing herein shall affect or -17- ATLAN'1'A:4941459.6 diminish LESSEE'S right to seek compensation from the condemning entity (either directly or through the LESSOR) for any portion of the Lease Premises taken and LESSEE shall be entitled to all such compensation for its loss or damage. In the event the taking of the Lease Premises or all or a part of LESSOR'S other property comprising the Site is total, this Lease Agreement shall terminate, and LESSEE shall be released from all obligations hereunder, except for any amounts incurred by LESSEE prior to the date of termination which amounts shall be paid to LESSOR within thirty (30) days of the date of termination. In the event the taking of the Lease Premises or LESSOR'S other property comprising the Landfill is less than total, then LESSEE shall have the option to terminate this Lease Agreement if continuation of its operations on the Lease Premises is substantially impaired and economically impractical. 6.5 Studies. LESSOR shall provide to LESSEE within fifteen (15) days after LESSOR'S date of receipt of same, all environmental and all other studies concerning the Lease Premises as they are performed during the course of this Lease Agreement. LESSEE shall provide to LESSOR within fifteen (15) days after LESSEE'S date of receipt of same, all environmental and other studies concerning the Lease Premises during the course of this Lease Agreement. 6.6 Recordation. Neither LESSOR nor LESSEE shall record this Lease Agreement without the prior written consent of the other party. LESSOR and LESSEE may execute and acknowledge a "short form" memorandum of this Lease Agreement for recording purposes, substantially in the same form as set forth in EXHIBIT 3 attached hereto. 6.7 Entire Agreement. This Lease Agreement embodies the entire agreement between the parties with respect to the leasing and use of the Lease Premises. There are no representations, terms, conditions, covenants or agreements between the parties which are not mentioned or contained herein. This Lease Agreement shall completely and fully supersede all other prior agreements, other than the _]g_ ATLANTA:4941459.6 RRP Agreement, both written and oral, between the parties pertaining to the Lease Premises. No party to any such prior agreement hereafter will have any rights thereunder but shall look solely to this Lease Agreement for definition and determination of its rights, liabilities, or responsibilities relating to the aforesaid matters set forth herein. 6.8 Captions. The article and subsection headings and captions contained herein are included for convenience only and shall not be considered a part hereof or affect in any manner the construction or interpretation of this Lease Agreement. 6.9 Severability. The parties agree that if it should ever be held by a court of competent jurisdiction that any one or more articles, subsections, clauses or provisions of this Lease Agreement are invalid or ineffective for any reason, any such article, subsection, clause or provision shall be deemed sepazate from the remainder of this Lease Agreement and shall not affect the validity and enforceability of such remainder. 6.10 Successors and Assigns. The covenants, terms, conditions and obligations set forth and contained in this Lease Agreement shall be binding upon and inure to the benefit of LESSOR and LESSEE and their respective successors and assigns. 6.11 Disputes and Governing Law. Any disputes arising under this Lease Agreement shall be settled pursuant to Section 6.01 of the RRP Agreement. This Lease Agreement shall be construed solely in accordance with the laws of the State of Texas. Exclusive venue for any claim or cause of action under this Agreement shall be, as the case may be, either in the District Courts of Denton County, Texas, or the federal district courts of the Northern District of Texas, Dallas Division. IN WITNESS WHEREOF, this Lease Agreement has been executed by the duly legally authorized representative of LESSOR, in multiple copies, each of which, for all purposes, shall be deemed an original and all of which shall evidence but one agreement between. -19- ATLAN'fA:494I459.6 EXECUTED this ~ day of , 2007. THE CITY OF DENTON, TEXAS A Texas Municipal Corporate By: i ~~ GEORGE C. CAMPBELL, City Manager ATTEST JENNIFER WALTER, CITY SECRETARY By: o..v \J1 APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: -zo- ATLANTA:4941459.6 IN WITNESS WHEREOF, this Lease Agreement has been executed by LESSEE in the presence of the undersigned witnesses, in multiple copies, each of which, for all purposes, shall be deemed an original and all of which shall evidence but one agreement. WITNESSES: ~~~.~ ~ ~~e:~~n '~' OtARY °~ =~•~ ~: _~. _PUBLIC VISY RECYCLING, INC. A Delaware Corporation By: l.. _ 11 ~.--~c LUIS HENAO, Executive Vice President, Recycling Division Date: 9 ~ 20 ! ~7 CO. -21- ATLANTA:4941459.6 Proposed MRF Site September 17, 2007 Exhibit 1 ~ ~ ~ ~. ~r `; '~, `/~ .. `` {J' , •} •A l' .. 1~ . . t: • ~ .,' . ~i .-, X41 s E~~l in _. ~> h y ~ ,'' w.~ ~ "~Q~J.sS ~. +?. .S 1. 1 R'N> ~~~~. ,rd .I~ ~ LIIY _ ~'. ."~:~r - . r~ so - T _ _.. ~ s ~ > ~v, h r 1 ,~ y i . - ~~ ~ ~ t . i sV ~ ~ ~ 1~' j t + r ~. r -~ Lx.. 'w i ~ a G ~ 1 I. r ~, -w ~ _ ~ ~.~, , j µ.. 3 ~` '~. ~ '- '. ~ i '~( ~ n - ° ^~i~ +~ r ~ ~ ~ I -: Y '~` T b -°' ' ~ ~ ~ tw c t t ~ ' , s ~~+ % ~ ~ r ~ . { 5 ! r .. a". ~Ia~~ ~ ~ r ( i _ 2 E .w1 '4i ` ~ 528' l A ~ ~ l.i ~ t . ~ i X : 4- ~ .. u E~+ . 3 1 ={ . ~ ,: ' ~ ~Ir lJ ~ J't ~~ ,~ ~'' ~~ L ~~p5003S ~ t >, !~ i'.i14 ~hy~r'v~!t~~.~Y t~11+t Svi~ I Ida rn 1 771 ~ f~`J~g ~~ ~ ~7~i! ~ t A~si, -y~ A. Tit ~ .iFJ3?~4~ ~ 1 ~<E~ a ('~~"~ ~~ 5 ~p1 t i s _,,l ~ ~1~, ~~+J~~f e'}Atda,[,~",~/4 '~~•~s ~ ~. ~' ~I~ ~ ))' 'r irf "m~t~ + +~~, ~i~,, S f A q f t .1. :rr W €! ^Nc k7f11~! ` f !!_ °ia .ey f k 1r ,1 t ~ 7r ~. ~>.i'c p( .'~'... '°~+.^•~ F_ .. J~c..tl tl~l.lfl ll. 1 , atU 1 ' `~ _ t c* , .P-_. y. ,,- ~ -y --~~~,(r Imo--.-_,~(~ +'f ~ I i7. ~ 31 ~.wu' \; `i iI.'~.-[fit"' g ~. "•!-'-°w.~{-~€:.v+i f ' ~,Y 'i ~,~~ ~17 ~ -_ _t~ C a >'~i i ~ ~ ,_ 1 . /~ '~ ~~~ '. `. .. -, '` ~ `.~~ ^e`-y~J1 4 ~~ `.~/~r pJ{.~ hV ~1* ~ 's ~ . h.~ f ~ r o ~~ ~C 6 ^' ~w% _ __-. `~I nl 1 l5~tt lSt: 4 .i ~ ,~ d}I 4 n' r - r ., ~.~ Exhibit 2 Coleman LZ. Assoc. Land Sun/eying k'.O. llox (i8ti Ucnton. l'csas 7(i`l02 1'honc (!)40)5Gi•SLI:i F:u (9=10):itiS9800 6.0 Acre Tract FIELD NOTES to all of that certain [Tact of land situated in the G. Walker Survey Abstract Number 1330, Ciq~ of Denton, Denton County Texas and being a part of the called 29.612 acre tract described in the deed from Harold C. Coe to City of Denton, Texas recorded under Clerks File Number 95-R0072063 of the Real Property Records of Denton County, Texas and a part of the called 6.173 acre tract described in the deed from Clifford Harper and Vinson Harper to Ciry of Denton recorded under Clerk's File Number 99- 80088932 of the said Real Property Records; the subject tract being more particularly described as follows (Bearings basis is Texas Coordinate System of 1983, North Central Zone-4202): BEGINNING in the South line of the tract being described herein at a 1/2 inch iron rod found at a cross tie fence comer post at the Northerly Northwest comer of Lot A, Solid Waste I as shown by the plat thereof recorded in Cabinet W, Page 943 of [he Plat Records of Denton County, Texas and a reentrant corner of the said 29.612 acre tract and also being the Northeast comer of a called 3.6469 acre tract described in the deed from Ronald Brown et al to City of Denton, Texas recorded under Clerk's File Number 2004-106837 of the said Real Property Records; THENCE North 8S Degrees 28 Minutes 48 Seconds West with the North line of the said 3.6469 acre vact and the South line of the 29.612 acre tract passing a salient comer thereof and the Southeast comer of the said 6.173 acre tract and continuing along the same cottrse, in all, a total distance of 364.45 feet to a 112 inch iron rod with a yellow plastic cap stamped "Coleman RPLS 4001" set (herein after referred to as I/2"IRS) in a chain link fence from which a cross tie fence comer post at [he Southwest comer [hereof on the East side of Mayhill Road bears North 88 Degrees 28 Minutes 48 Seconds West a distance of 348.1 feet; THENCE North 04 Degrees OI Minutes 34 Seconds East along the said chain link fence across the 6.173 acre Hatt a distance of 101.94 feet to a 112"IRS at a chain link fence comer post for a reentrant comer of the herein described tract; THENCE North 86 Degrees 04 Minutes 39 Seconds West along the chain link fence across the 6:173 acre tract passing at a distance of 172.67 feet a chain link fence corner post and continuing along the same course, in all, a total distance of 180.36 feet to a 1/2"IRS for the Southwest comer of the herein described tract and being 20 feet Southeast of the East edge of an asphalt road; THENCE Noah 21 Degrees 15 Minutes IS Seconds East across the 6.173 acre tract, 20 feet Southeast of the said asphalt road, a distance of 264.19 feet to a 1/2"Ills; THENCE North O6 Degrees 36 Minutes 24 Seconds East continuing across the 6.173 acre tract passing the North line thereof and the South line of the said 29.612 acre tract and continuing 20 feet Southeast of the said asphalt road, in all, a total distance of 101.76 feet to a 1/2"IRS; THENCE North SI Degrees 48 Minutes 37 Seconds East continuing across the 29.612 acre tract, 20 feet Southeast of another asphalt road, a distance of 64.16_-feet to a 1/2"[RS for the Northwest corner of the herein described tract; THENCE South 83 Degrees 49 Minutes 47 Seconds East continuing across the 29.612 acre tract, 10 feet South of a dirt haul road, a distance oC 483.85 feet to a 1/2"IRS for the Northeast comer of the herein described tract; THENCE South 01 Degrees 28 Minutes 23 Seconds West continuing across [he 29.612 acre tract a distance of 461.23 feet to a I /2"IRS in the North line of the said Lot A; THENCE North 88 Degrees 28 Minutes 01 Seconds West with the North line of Lot A, a distance of 90.03 feet to the PLACE OF BEGINNING.and enclosing 6.0 acres of land, more or less. EXHIBIT " 3" MEMORANDUM OF LEASE THIS MEMORANDUM OF LEASE ("Memorandum") is executed as of the day of , 2007, by and between THE CITY OF DENTON, TEXAS, and VISY RECYCLING, INC.: WITNESSETH: 1. LESSOR is the owner of a tract of land (the "Property") located in Denton, Texas, and shown outlined in on Exhibit "1"attached hereto. 2. LESSOR and LESSEE have entered into a certain Lease Agreement (the "Lease") this day of , 2007, wherein LESSOR has leased to LESSEE the Property for the term of twenty (20) yeazs commencing on the day of 2007. 3. The parties wish to record a reference to the Lease to declaze that the Property is subject to all of the provisions contained in the Lease. 4. This Memorandum is not intended to alter any of the terms and provisions of the Lease, but is to serve as notice of the existence of the Lease. ATLANTA:4941459.6 IN WITNESS WHEREOF, LESSOR and LESSEE have caused this Memorandum of Lease to be duly executed on the day and year first written above. WITNESSES: THE CITY OF DENTON, TEXAS By: VISY RECYCLING, INC. By: -2- ATLANTA:4941459.6 CITY ACKNOWLEDGEMENT THE STATE OF TEXAS COUNTY OF DENTON BEFORE ME, the undersigned authority came George C. Campbell, the City Manager of the City of Denton, Texas, who has executed this document as the duly-authorized officer of the City of Denton, Texas, on this the day of , 2007. [SEAL] Notary Public in and for the State of Texas THE STATE OF GEORGIA COUNTY OF ROCKDALE ~1 v 15 TI E-t`I.~g6 BEFORE ME, the undersigned notary came (name] ,the Vice President of Visy Recycling, Inc., who has execu~t+ed this document as the duly-authorized officer of Visy Recycling, Inc., on this the ZOday of ) ~~BHF_ , 2007. [SEAL] ~ 111 ~.~.~ (~_+/~~[ Q.~ Notary Public .NOtARY''~t9: ~.e~~ _PUBLI~r~P -1- ATLANTA:4941459.6