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Client acknowledges Bandwear is an E-Commerce and fulfillment services provider. Bandwear is not in the business of long-term storage of inventory. Bandwear provides for the short-term storage of inventory to facilitate the process of fulfilling and shipping Client’s store orders. Excess inventory sitting in excess of ninety (90) days will be assessed an excess inventory fee if total excess inventory is greater than Client’s E-Commerce Administration Fee for the month.

No Excess Inventory fee will be charged for the first ninety (90) days Client’s product inventory is in Bandwear’s possession. The inventory shipped during the first ninety (90) days will be used to create the par level for each inventory item in the monthly Excess Inventory fee calculation and will adjust each month moving forward based on the preceding ninety (90) day period. Additionally, no Excess Inventory fee will be charged for the first ninety (90) days after a new product is received into Bandwear’s systems so that it may establish its par level. This assures Client has time to sell through new inventory prior to having any potential Excess Inventory fees assessed. Bandwear’s algorithm for Excess Inventory fees identifies any inventory Client is holding at Bandwear’s warehouse which most likely will not be able to ship within the next ninety (90) days and deems it Excess Inventory.

Any inventory calculated at more than a ninety (90) day supply is subject to a monthly Excess Inventory fee (vs. E-Commerce Administration Fee) based on the fees in our Excess Inventory Fee Grid. There is a minimum fifty cent ($0.50) “BIN” charge for each individual inventoried product variant until that product variant is has reached zero (0) inventory in Bandwear’s system. The BIN fee is part of the Excess Inventory algorithm.

Excess Inventory fees are charged versus Client’s E-Commerce Administration Fee, whichever is higher. If Client’s E-Commerce Administration Fee for a given month is greater than the Excess Inventory fee calculation there will be no Excess Inventory fee assessed. If Client’s E-Commerce Administration Fee for a given month is lower than the Excess Inventory fee calculation the Excess Inventory fee will be assessed instead of the E-Commerce Administration Fee. The E-Commerce Administration Fee versus Excess Inventory calculation does not apply to any other fees documented on the Fees Addendum. Client will not be charged both an E-Commerce Administration Fee and Excess Inventory Fee; only that which is greater. It is advisable that Client manage its inventory such as to not incur Excess Inventory fees.