Inline Plastics Playbook v2 JUL-21

13.2 Pricing

Inline Plastics utilizes three types of pricing and two types of price adjustment mechanisms • Into Stock – adjusted with a periodic price increase • POD Rebate (Proof of Delivery) – adjusted by CDI or periodic price increase • Direct – adjusted by CDI or periodic price increase Most of our sales go through distribution channels. Each of our products has an "Into Stock" price. "Into Stock" is the price that we invoice to our distributors at the time of shipment. The "Into Stock" price is set up and monitored by the marketing team. We have rebate pricing agreements with distributors, which help adjust the pricing for specific end users. These agreements are called "POD"s (Proof of Delivery). "POD"s allow for prices specific to individual end-users for a set of agreed-upon items that are below the "Into Stock" price. Every month, the distributor provides documentation to Inline's rebate team detailing items and quantities have been shipped to each of the end-users for which a "POD" is in place. Upon reviewing the submitted documentation, Inline issues a credit to the distributor for the difference between the "Into Stock" and "POD" pricing. • The primary price adjustment mechanism adjusts pricing based on Market Based changes in raw material costs tied to an index called CDI (Chem Data Index). Most of our "POD"s are linked to changes in this index and are adjusted quarterly (up or down), using a change in the three-month average CDI resin price. Details of CDI price adjustment are spelled out on every program under Key Definitions. The pricing team makes adjustments to our customer contracts on the agreed-upon schedule. The pricing team then sends this updated pricing to the list of email addresses provided by the salesperson responsible for each program. This communication informs the customer to make adjustments to their pricing. Both distributors (for their end-user contracts) and any direct business that we may have can use this type of price adjustment mechanism (CDI). • A secondary price adjustment mechanism is a specific adjustment (increase or decrease) announced periodically across all items. This adjustment applies to "Into Stock" pricing, as well as any "POD" end-user pricing, which is not tied to the "CDI" adjustment schedule. At present, we have over 200 PODs in place. Furthermore, we have two price adjustment mechanisms:

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