Loss/Damage Terms for Distribution Centers in the United States Sample Clauses

Loss/Damage Terms for Distribution Centers in the United States. Losses as determined between KXXXXX + NAGEL’s book inventory and the annual physical inventory in excess of the Shrinkage Allowance shall be limited to: (i) the direct manufacturing cost of the Product (excluding intercompany charges or profit) if manufactured by Customer; or (ii) the replacement cost of the Product if purchased from a third party vendor; in either instance less salvage value. Customer agrees to provide KXXXXX + NXXXX a shrinkage/damage allowance of [ * ] percent ([ * ]%) of the book value of Customer’s annual through-put volume (“Shrinkage Allowance”). If Customer’s inventory system is used in place of KXXXXX + NAGEL’s system, or if KXXXXX + NXXXX otherwise is not given complete care, custody and control of the Products, KXXXXX + NXXXX shall have no liability for inventory shortages. The Shrinkage Allowance is subject to review after the reconciliation of the first annual physical inventory and annually thereafter. KXXXXX + NXXXX shall have no liability for any loss or damage to the Products prior to receipt thereof by KXXXXX + NXXXX at the distribution center or following the delivery thereof to the common carrier for shipment to the Customer’s consignee (or to such other destination as the Customer shall otherwise instruct), nor shall KXXXXX + NXXXX have any liability for any Product shortage or damage which is not visibly apparent at the time of receipt at the distribution center.
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