Common use of Permitted Variances Clause in Contracts

Permitted Variances. All Workable Orders will be subject to variance by Supplier from the purchase order quantity per the following schedule: Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity; quantity ordered may be rounded up to the next price break point if it makes economic sense. • Buyer sets reorder point at [*****]% of finished goods quantity. Reorders • Reorders that will reduce on hand inventory below our reorder point will create a demand for print. The buyer will do a net asset computation to determine the quantity to be ordered? Reorder quantity = Reorder Point Quantity + FG Reorder Quantity - Printed Material On Hand. • The Reorder Point Quantity is recalculated, and changed if applicable, each time the printed material is reordered. Various factors including sales, finished goods inventory, and market intelligence are considered when assessing Reorder Point Quantities. Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity; quantity ordered may be rounded up to the next price break point if it makes economic sense. • Buyer keeps the Reorder Point Quantity at [*****]; printed material is only ordered on demand. Reorders • Printed material is only ordered when finished goods orders are received. • Buyers order print in the quantity of [*****]% of the finished goods quantity. Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity; quantity ordered may be rounded up to the next price break point if it makes economic sense. • Buyer sets reorder point at [*****]% of finished goods quantity. • Reorders • Reorder strategy is the same as New Release — Commercial/Deluxe. Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity; quantity ordered may be rounded up to the next price break point if it makes economic sense. • Buyer keeps the Reorder Point Quantity at [*****]; printed material is only ordered on demand. Reorders • Printed material is only ordered when finished goods orders are received. • Buyers order print in the quantity of [*****]% of the finished goods quantity. Initial Order Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity. • Buyer sets reorder point at [*****]% of finished goods quantity. Reorders • Reorder strategy is the same as New Release — Commercial/Deluxe. Selections less than three months past release date • Use current Reorder Point Selections greater than three months past release date • Determine average monthly sales; not to exceed [*****]. This calculation will determine the Reorder Point Quantity to be used in the net asset calculation. • The buyer will do a net asset computation to determine the quantity to be ordered? Reorder quantity = (Difference between Printed Material On Hand FG Reorder) + Reorder Point Quantity.

Permitted Variances. All Workable Orders will be subject to variance by Supplier from the purchase order quantity per the following schedule: Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity; quantity ordered may be rounded up to the next price break point if it makes economic sense. • Buyer sets reorder point at [*****]% of finished goods quantity. Reorders • Reorders that will reduce on hand inventory below our reorder point will create a demand for print. The buyer will do a net asset computation to determine the quantity to be ordered? Reorder quantity = Reorder Point Quantity + FG Reorder Quantity - Printed Material On Hand. • The Reorder Point Quantity is recalculated, and changed if applicable, each time the printed material is reordered. Various factors including sales, finished goods inventory, and market intelligence are considered when assessing Reorder Point Quantities. Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity; quantity ordered may be rounded up to the next price break point if it makes economic sense. • Buyer keeps the Reorder Point Quantity at [*****]; printed material is only ordered on demand. Reorders • Printed material is only ordered when finished goods orders are received. • Buyers order print in the quantity of [*****]% of the finished goods quantity. Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity; quantity ordered may be rounded up to the next price break point if it makes economic sense. • Buyer sets reorder point at [*****]% of finished goods quantity. • Reorders • Reorder strategy is the same as New Release — Commercial/Deluxe. Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity; quantity ordered may be rounded up to the next price break point if it makes economic sense. • Buyer keeps the Reorder Point Quantity at [*****]; printed material is only ordered on demand. Reorders • Printed material is only ordered when finished goods orders are received. • Buyers order print in the quantity of [*****]% of the finished goods quantity. Initial Order • Print requisition is received from the production office indicating finished goods quantity. • Buyer orders print in the quantity of [*****]% of the finished goods quantity. • Buyer sets reorder point at [*****]% of finished goods quantity. Reorders • Reorder strategy is the same as New Release — Commercial/Deluxe. Selections less than three months past release date • Use current Reorder Point Selections greater than three months past release date • Determine average monthly sales; not to exceed [*****]. This calculation will determine the Reorder Point Quantity to be used in the net asset calculation. • The buyer will do a net asset computation to determine the quantity to be ordered? Reorder quantity = (Difference between Printed Material On Hand FG Reorder) + Reorder Point Quantity.