Common use of Inventory Adjustments Clause in Contracts

Inventory Adjustments. (a) NetWolves agrees to provide Anicom with the opportunity to adjust its levels of NetWolves inventory of Products under the following conditions. NetWolves shall repurchase or exchange, at NetWolves' option (an "Inventory Adjustment"): (i) any newly introduced Products, defined as Products which are in the first six (6) months of the Product introduction period and were not previously stocked by Anicom (for purposes herein, the product introduction period begins upon first receipt of the Products by Anicom), and (ii) any slow move return items, defined as new, unused products in original cartons which (1) have been in Anicom's inventory for at least three months and (2) have not been reordered from NetWolves during such three month period. (b) NetWolves agrees to exchange or credit to Anicom's account all Products in Anicom's inventory which have been replaced by updated, modified, enhanced, newly released and/or enhanced Products, New Versions and/or Competitive Products ("Improved Product Adjustment"). (c) NetWolves agrees that it will allow Anicom to exchange for Products of equal value up to fifteen percent (15%) of the prior purchases made during each of NetWolves' fiscal quarters subject to the following: (i) Products returned must be unused, undamaged, sealed in their original packages and in merchantable condition; (ii) all freight charges for said returns shall be paid by Anicom; (iii) sales of special configurations of Products shall not be subject to exchange; and (iv) Products returned to NetWolves as an Improved Product Adjustment shall not be included in determining the fifteen percent (15%) rotation amount.