Turn Rate definition
Turn Rate means the quotient of (i) the aggregate of the last eight weeks of Buyer’s cost of the individual Product sold resulting from retail sales of the individual Product in Buyer-owned stores divided by (ii) the average cost of the aggregate individual Product in inventory at Buyer-owned stores and 70% of distribution centers inventory during the same eight week period. The calculated value of 70% of distribution centers inventory accounts for Product inventory allocated to Buyer-owned stores. For clarity purposes, the term “individual Product” in the preceding sentence refers to one specific Product listed on Exhibit 1 to the Purchasing Agreement and not all of the Products collectively listed on Exhibit 1 to the Purchasing Agreement. Seller agrees that any of the Products previously delivered to Buyer and that are in Buyer’s inventory prior to execution of this Agreement are subject to the terms of this Agreement. Seller agrees to provide Buyer with a letter of credit to satisfy any amounts Seller owes Buyer under this Agreement. Buyer’s objectives under this Agreement are: · Fairness to all parties · Total accountability · Supplier designated disposition of products · Thorough, accurate, and timely communication with Buyer’s suppliers Buyer shall receive a credit (or at Buyer’s option, a cash payment) for each unit of any Product returned based on Buyer Standard Cost (as defined below) per unit, plus the accepted factors from the Joint Industry Report (JIR) for handling returns. These accepted factors include: · Direct Product Cost (“DPC”): $0.085 · Post Damage Handling (“PDH”): $0.190 · Operations Through Scan (“OTS”): $0.101 · Disposition Cost (as selected below) Please indicate the method of disposition and corresponding Disposition Cost for the Products by placing an “X” on the appropriate choice below (if no method of disposition is chosen by Seller within seven days following the notification to return Product, the COPT code will apply):