Common use of Inventory Adjustments Clause in Contracts

Inventory Adjustments. a. Obsolete Product inventory may be returned to Memsic for credit, as stated below. b. A request for authorization to return obsolete product inventory must be submitted to Memsic by Distributor within thirty (30) days after transmittal of notice by Memsic indicating such Product to be obsolete. Product allowance shall be the purchased unit cost for such obsolete Product prior to the aforementioned notice from Memsic indicating such Product to be obsolete. (i) Each return goods request for obsolete Product inventory must be accompanied by an offsetting purchase order for other Product in value at least equal to the total value of obsolete Product inventory to be returned, and replacement Product identified in said purchase order must be scheduled for immediate delivery. (ii) All returned (obsolete) Product must be shipped F.O.B. destination, freight prepaid. c. All Product returned under this agreement is subject to inspection and approval by Memsic before Memsic will issue credit for such Product. All returned Product must be new, in original packing, and of marketable quality and condition upon receipt and inspection by Memsic. Memsic agrees to inspect returned Product within thirty (30) days of receipt. Product must be within Memsic’s standard warranty terms at the time of receipt by Memsic. All Product not meeting all of the above criteria, or rejected for other reasons, will be returned, freight collect, to Distributor and Memsic shall not issue any credit to Distributor for such Product. All Product returned by Distributor pursuant to the provisions of this Section 9 must be received by Memsic no later than thirty (30) days after Distributor has received the appropriate return authorization number.