Common use of Product Disposition Clause in Contracts

Product Disposition. Effective for all purchase orders written by Rite Aid during the period May 1, 2000 through December 31, 2000 and in lieu of all other rebates and allowances for damaged, outdated, and discontinued Products and rebates with respect to Third Party Products sold to Rite Aid under this Agreement, Rite Aid shall be entitled to deduct [*]% from each invoice received by it from GNC, excluding Consigned Product invoices. Effective for all purchase orders written by Rite Aid from and after January 1, 2001, and in lieu of all other rebates and allowances for damaged, outdated and discontinued Products, other than GNC Brand Products, and rebates with respect to Third Party Products sold to Rite Aid under this Agreement, Rite Aid shall be entitled to deduct [*]% from each invoice received from it from GNC, excluding Consigned Product invoices, and with respect to GNC Brand Products Rite Aid shall have the right to return all damaged and outdated GNC Brand Products to GNC's distribution centers or elsewhere as GNC directs for full credit at then current invoice cost. In addition, in the event that at any time Rite Aid and GNC jointly determine to discontinue GNC Brand Products from the GNC Plan-O-Gram or Rite Aid determines to discontinue Third Party Products, Rite Aid shall, pursuant to the General Nutrition Sales Corporation Product Return Policy with Rite Aid HDTQRS Corp., a copy of which is attached hereto as Exhibit IV.B.(4)-1., have the right to return to GNC's distribution centers, for full credit at then current invoiced cost, full cases of the discontinued GNC Brand Products and Third Party Products remaining at Rite Aid's distribution centers. All other Product shipment discrepancies shall be handled pursuant to the General Nutrition Products, Inc. Shipment Discrepancy Policy with Rite Aid HDTQRS Corp., a copy of which is attached hereto as Exhibit IV.B.(4)-2." 7. Amendment of Paragraph IV.C.2 "Cooperative Advertising." Paragraph IV.C.2. is hereby amended by adding the following sentence to the end thereof: "Gross Sales resulting from the sale of Consigned Products, as defined in the Consignment Agreement, shall be determined by calculating the number of units withdrawn from Consignment Inventory for the relevant time period." 8. Amendment of Paragraph D of Article IV. A new sentence is added at the end of Paragraph D of Article IV as follows: "All PRODUCTS delivered by GNC pursuant to this Agreement shall be delivered on a carrier designated by GNC. Rite Aid will have 12 hours free time to offload carrier equipment arriving at the agreed upon appointment time. Any time in excess of these 12 hours will be charged back to Rite Aid at a rate of $50 per hour for detention of driver and equipment, not to exceed $500 per 24 hour period per delayed driver and equipment." 9. Amendment of Article XI "Noncompetition." Paragraph A. Paragraph XI.A. is hereby amended and restated in its entirety as follows: