Common use of Warehouse Operations Clause in Contracts

Warehouse Operations. The Parties agree that, except as specifically modified herein, APLL will be a warehouseman as described in Article 7 of the Uniform Commercial Code ("UCC") as enacted in the state(s) where the Warehouse(s) are located and is entitled to all rights and subject to all obligations described therein with the exception that APLL has waived its right to Warehouseman's Lien in exchange for the Letter of Credit provided for in Section 4.5. APLL's standard of care for the Services performed hereunder shall be the customary and usual warehousing practices as performed in the community in which the Warehouse is located; provided that in no event will the standard of care be less than the industry standard and practices of skill and care customarily observed by similar companies in similar circumstances. 1 <PAGE> The Warehouse space will be utilized by APLL as efficiently as practical without creating inefficiencies in handling operations. All Products shall be segregated by stock keeping unit, date, lot number, or other characteristics or combination of characteristics, as agreed upon (a "stock keeping unit" being the lowest level for which inventory material handling records are maintained for purposes of this Agreement). NETGEAR shall notify APLL of stocking limitations, Products to be accounted for separately, and any other Product peculiarities in writing, prior to delivery of such Products to the Warehouse. In the event of any inconsistencies or conflicts between the terms contained in this Agreement and Article 7 of the UCC (as codified in the State of California), the terms of this Agreement shall be given preferential deference in determining the intent of the parties.

Warehouse Operations. The Parties agree that, except as specifically modified herein, APLL will be a warehouseman as described in Article 7 of the Uniform Commercial Code ("UCC") as enacted in the state(s) where the Warehouse(s) are located and is entitled to all rights and subject to all obligations described therein with the exception that APLL has waived its right to Warehouseman's Lien in exchange for the Letter of Credit provided for in Section 4.5. APLL's standard of care for the Services performed hereunder shall be the customary and usual warehousing practices as performed in the community in which the Warehouse is located; provided that in no event will the standard of care be less than the industry standard and practices of skill and care customarily observed by similar companies in similar circumstances. 1 <PAGE> The Warehouse space will be utilized by APLL as efficiently as practical without creating inefficiencies in handling operations. All Products shall be segregated by stock keeping unit, date, lot number, or other characteristics or combination of characteristics, as agreed upon (a "stock keeping unit" being the lowest level for which inventory material handling records are maintained for purposes of this Agreement). NETGEAR shall notify APLL of stocking limitations, Products to be accounted for separately, and any other Product peculiarities in writing, prior to delivery of such Products to the Warehouse. In the event of any inconsistencies or conflicts between the terms contained in this Agreement and Article 7 of the UCC (as codified in the State of California), the terms of this Agreement shall be given preferential deference in determining the intent of the parties.