Common use of Fixed Costs Clause in Contracts

Fixed Costs. The “Fixed Costs” shall equal IP’s total fixed cash costs for operating GT 1&2 less depreciation, which categories of fixed cash costs are set forth on Schedule C hereto, per ton of the Product. The Fixed Costs shall be charged to Sylvamo notwithstanding any lack of orders. Notwithstanding the foregoing, the Fixed Costs shall be offset proportionately (as measured by machine hours) for any IP Production Run on GT 1&2 during the invoiced period.