Common use of INVENTORY EVALUATION Clause in Contracts

INVENTORY EVALUATION. A physical inventory of the Drug Store Assets shall be performed on the Closing Date by an independent third party inventory service. Each party shall pay one-half of the fee charged by the service company, with Seller's pro rata share of such costs to be deducted from the purchase price payable by Buyer at Closing. For purposes of calculating that portion of the purchase price attributed to inventory under Section 2, above, the marketable inventory shall be valued as follows, except as otherwise provided herein: MARKETABLE INVENTORY METHOD OF VALUATION -------------------- ------------------- Prescription inventory Actual acquisition cost (except if acquisition cost is not available then AWP less 16%) Non-Prescription inventory Acquisition cost In the event Seller is unable to establish the acquisition cost of any non-prescription inventory, the following formula shall be applied in valuing such inventory. CATEGORY OF MERCHANDISE METHOD OF VALUATION ----------------------- ------------------- HBA Retail price less 25% OTC Retail price less 25% Gifts Retail price less 50% Cards Retail price less 50% Cosmetics Retail price less 40% Watches/Cameras Retail price less 50% Fragrances Retail price less 25% Candy (box) Retail price less 40% Candy (loose) Retail price less 30% Jewelry Retail price less 50% Miscellaneous Retail price less 50% Seasonal Merchandise Retail price less 50% Books Retail price less 40% Audiotapes Retail price less 45%

INVENTORY EVALUATION. A physical inventory of the Drug Store Assets shall be performed on the Closing Date by an independent third party inventory service. Each party shall pay one-half of the fee charged by the service company, with Seller's pro rata share of such costs to be deducted from the purchase price payable by Buyer at ClosingClosing (to be deducted from each note in equal amount). For purposes of calculating that portion of the purchase price attributed to inventory under Section 2, above, the marketable inventory shall be valued as follows, except as otherwise provided herein: MARKETABLE INVENTORY METHOD OF VALUATION Marketable Inventory Method of Valuation -------------------- ------------------- Prescription inventory Actual Acquisition cost of AWP less 14% except for special deal prescription items or generic items which shall be valued at acquisition cost (except if acquisition cost is not available then AWP less 16%) Non-Prescription inventory Acquisition cost In the event Seller is unable to establish the acquisition cost of any non-prescription inventory, the following formula shall be applied in valuing such inventory. CATEGORY OF MERCHANDISE METHOD OF VALUATION Category of Merchandise Method of Valuation ----------------------- ------------------- HBA Retail price less 25% OTC Retail price less 25% Gifts Retail price less 5040% Cards Retail price less 50% Cosmetics Retail price less 4033 1/3% Watches/Cameras Retail price less 5025% Fragrances Retail price less 25% Candy (box) Retail price less 40% Candy (loose) Retail price less 30% Jewelry Retail price less 5040% Miscellaneous Retail price less 5040% Seasonal Merchandise Retail price less 50% Books Retail price less 40% Audiotapes Retail price less 45%

INVENTORY EVALUATION. A physical inventory of the Drug Store Assets shall be performed on the Closing Date by an independent third party inventory service. Each party shall pay one-half of the fee charged by the service company, with Seller's pro rata share of such costs to be deducted from the purchase price payable by Buyer at Closing. For purposes of calculating that portion of the purchase price attributed to inventory under Section 2, above, the marketable inventory shall be valued as follows, except as otherwise provided herein: MARKETABLE INVENTORY METHOD OF VALUATION -------------------- ------------------- Prescription inventory Actual acquisition Acquisition cost (except if acquisition cost is not available then or AWP less 16%) % except for special deal prescription items or generic items which shall be valued at acquisition cost Non-Prescription inventory Acquisition cost In the event Seller is unable to establish the acquisition cost of any non-prescription inventory, the following formula shall be applied in valuing such inventory. CATEGORY OF MERCHANDISE METHOD OF VALUATION ----------------------- ------------------- --------------------- HBA Retail price less 25% OTC Retail price less 25% Gifts Retail price less 50% Cards Retail price less 50% Cosmetics Retail price less 40% Watches/Cameras Retail price less 50% Fragrances Retail price less 25% Candy (box) Retail price less 40% Candy (loose) Retail price less 30% Jewelry Retail price less 50% Miscellaneous Retail price less 50% Seasonal Merchandise Retail price less 50% Books Retail price less 40% Audiotapes Retail price less 45%

INVENTORY EVALUATION. A physical inventory of the Drug Store Assets shall be performed on the Closing Date by an independent Independent third party inventory service. Each party shall pay one-half of the fee charged by the service company, with Seller's pro rata share of such costs to be deducted from the purchase price payable by Buyer at Closing. For purposes of calculating that portion of the purchase price attributed to inventory under Section 2, above, the marketable inventory shall be valued as follows, except as otherwise provided herein: MARKETABLE INVENTORY METHOD OF VALUATION Marketable Inventory Method of Valuation -------------------- ------------------- Prescription inventory Actual acquisition Acquisition cost (except if acquisition cost is not available then or AWP less 16%) % except for special deal prescription items or generic items which shall be valued at acquisition cost Non-Prescription inventory Acquisition cost In the event Seller is unable to establish the acquisition cost of any non-prescription inventory, the following formula shall be applied in valuing such inventory. CATEGORY OF MERCHANDISE METHOD OF VALUATION Category of Merchandise Method of Valuation ----------------------- ------------------- HBA Retail price less 25% OTC Retail price less 25% Gifts Retail price less 50% Cards Retail price less 50% Cosmetics Retail price less 40% Watches/Cameras Retail price less 50% Fragrances Retail price less 25% Candy (box) Retail price less 40% Candy (loose) Retail price less 30% Jewelry Retail price less 50% Miscellaneous Retail price less 50% Seasonal Merchandise Retail price less 50% Books Retail price less 40% Audiotapes Retail price less 45%

INVENTORY EVALUATION. A physical inventory of the Drug Store Assets shall be performed on the Closing Date by an independent third party inventory service. Each party shall pay one-half of the fee charged by the service company, with Seller's pro rata share of such costs to be deducted from the purchase price payable by Buyer at Closing. For purposes of calculating that portion of the purchase price attributed to inventory under Section 2, above, the marketable inventory shall be valued as follows, except as otherwise provided herein: MARKETABLE INVENTORY METHOD OF VALUATION -------------------- ------------------- Prescription inventory Actual acquisition Acquisition cost (except if acquisition cost is not available then or AWP less 16%) % except for special deal prescription items or generic items which shall be valued at acquisition cost Non-Prescription inventory Acquisition cost Cost In the event Seller is unable to establish the acquisition cost of any non-prescription inventory, the following formula shall be applied in valuing such inventory. CATEGORY OF MERCHANDISE METHOD OF VALUATION ----------------------- ------------------- HBA Retail price less 25% OTC Retail price less 25% Gifts Retail price less 50% Cards Retail price less 50% Cosmetics Retail price less 40% Watches/Cameras Retail price less 50% Fragrances Retail price less 25% Candy (box) Retail price less 40% Candy (loose) Retail price less 30% Jewelry Retail price less 50% Miscellaneous Retail price less 50% Seasonal Merchandise Retail price less 50% Books Retail price less 40% Audiotapes Retail price less 45%-------------- -3- ------------- Seller initial Buyer Initial