Encoded Music Sample Clauses

Encoded Music. N2K will provide Sound Delivery with Segregated ----------------- Inventory of product owned or distributed by N2K's "Encoded Music" label for Sound Delivery to fulfill orders for such product under this Agreement. VRD will continue to purchase any Encoded Music product required for its one-stop and distribution business from N2K's designated Encoded Music distributor. N2K may audit Encoded Music Segregated Inventory up to two times per calendar year, such audit to be performed at N2K's expense, on reasonable notice and without undue disruption to Sound Delivery's or VRD's business. N2K will be credited for any inventory discrepancy found in such audit to the extent such discrepancy exceeds one percent (1%) of the aggregate Encoded Music Segregated Inventory held by VRD during the twelve (12) month period preceding such audit, such credit to be at a price not to exceed VRD's cost for such product from the designated distributor of Encoded Music products.
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