Common use of MONTHLY RETURNS Clause in Contracts

MONTHLY RETURNS. This practice covers the return of surplus inven- tory and ordered-in-error material. Good inventory management practices coupled with the Seco dis- count structure which is independent of order size, should help minimize surplus inventory. Neverthe- less, Seco recognizes that surpluses may build from time to time. Ordered-in-error is generally defined to mean any Distributor or end-user error resulting in the purchase of an incorrect product or quantity of product. Seco will accept returns for the above reasons on a monthly basis under the following procedures and conditions: Procedures: • The Distributor must submit a list of mate- rial by using either the on line RMA Request or by sending a request to customer Service. The preferred method is that the request be completed and transmitted on-line. Whether submitting a RMA Request on-line or via email, phone or fax, all return requests must be pre- approved by Customer Service. • Customer Service will provide the Distributor with a return Material (RM) number, label, packing list and return material listing. • The return must have the pre-printed label clearly affixed to the return package, include the completed pre-printed packing list and is subject to inspection prior to issuance of credit. • The Distributor will be advised of any non-con- forming material. • A final credit will be issued by Credit & Claims, within 30 days of receipt of material. Conditions: • The frequency of returns is at the discretion of the distributor. • A handling fee of $25 will be charged for each return that has been submitted electronically through Seco’s website. A handling fee of $75 will be charged for each return request submit- xxx by telephone, fax, or email. • Total value of all returns is limited to 5% of the previous 12 months purchases. Seco will consider specific, unusual returns for exclusion from the 5% cap at the written request of the Distributor. Acceptance of returns excluded from the 5% cap are at the sole discretion of Seco. • Returns must be received at Seco within 30 days of the issuance of the RM number. After 30 days the RM number is no longer valid and a new request must be submitted. • Products must be purchased within the previ- ous 24 months from the date of return. • Material must be current stock standards (“S” or “E” status), new and unused, in original package quantity with the package seal unbro- xxx, and in resalable condition. • Quick response items with a “C” stock status are not returnable (see section 1.4). • A 10% repackaging charge will be applied, on a per item basis, for any item requiring repackag- ing. • Monthly returns are credited at an average price of all invoices and credits issued for the item within the past 24 months. • Material must be sent back freight pre-paid. • Material must be securely packaged for transit. Damage by the carrier is the responsibility of the Distributor. • No over shipments of pre-approved quantities are permitted. Under-shipments from ap- proved quantities are permitted. Any quantity in excess of pre-approved quantities must be held for the next return. • Any non-conforming material or not meeting the return conditions will be returned to the distributor. • No advance deductions are allowed. A credit memo must be issued to the Distributor from Credits & Collections before taking a deduc- tion. • Any unauthorized deduction or unresolved dispute will result in the loss of the 3% Prompt Pay component of the Business Practices dis- count. All outstanding issues must be resolved within 30 days from issuance of credit.

MONTHLY RETURNS. This practice covers the return of surplus inven- tory and ordered-in-error material. Good inventory management practices coupled with the Seco dis- count structure which is independent of order size, should help minimize surplus inventory. Neverthe- less, Seco recognizes that surpluses may build from time to time. Ordered-in-error is generally defined to mean any Distributor or end-user error resulting in the purchase of an incorrect product or quantity of product. Seco will accept returns for the above reasons on a monthly basis under the following procedures and conditions: Procedures: • The Distributor must submit a list of mate- rial by using either the on line RMA Request or by sending a request to customer Service. The preferred method is that the request be completed and transmitted on-line. Whether submitting a RMA Request on-line or via email, phone or fax, all All return requests must be pre- pre-approved by Customer Service. A PO number and / or invoice number must be provided for all items that the Distributor wishes to return. • Customer Service will provide the Distributor with a return Return Material (RM) number, label, packing list and return material listing. • The return must have the pre-printed label clearly affixed to the return package, include the completed pre-printed packing list and is subject to inspection prior to issuance of credit. • The Distributor will be advised of any non-con- forming non- conforming material. • A final credit will be issued by Credit & Claims, within 30 days of receipt of material. Conditions: • The frequency of returns is at the discretion of the distributor. • A handling fee of $25 will be charged for each return that has been submitted electronically through Seco’s website. A handling fee of $75 will be charged for each return request submit- xxx by telephone, fax, or emailreturn. • Total value of all returns is limited to 5% of the previous 12 months purchases. Seco will consider specific, unusual returns for exclusion from the 5% cap at the written request of the Distributor. Acceptance of returns excluded from the 5% cap are at the sole discretion of Seco. • Returns must be received at Seco within 30 days of the issuance of the RM number. After 30 days the RM number is no longer valid and a new request must be submitted. • Products must be purchased within the previ- ous 24 months from the date of return. • Material must be current stock standards (“S” or “E” status), new and unused, in original package quantity with the package seal unbro- xxx, and in resalable condition. • Quick response items with a “C” stock status are not returnable (see section 1.4). • A 10% repackaging charge will be applied, on a per item basis, for any item requiring repackag- ing. • Monthly returns are credited at an average price of all invoices and credits issued for the item within the past 24 months. • Material must be sent back freight pre-paidrepackaging. • Material must be securely packaged for transit. Damage by the carrier is the responsibility of the Distributor. • No over shipments of pre-approved quantities are permitted. Under-shipments from ap- proved quantities are permitted. Any quantity in excess of pre-approved quantities must be held for the next return. • Any non-conforming material or not meeting the return conditions will be returned to the distributor. • No advance deductions are allowed. A credit memo must be issued to the Distributor from Credits & Collections before taking a deduc- tion. • Any unauthorized deduction or unresolved dispute will result in the loss of the 3% Prompt Pay component of the Business Practices dis- count. All outstanding issues must be resolved within 30 days from issuance of credit.

MONTHLY RETURNS. This practice covers the return of surplus inven- tory and ordered-in-error material. Good inventory management practices coupled with the Seco dis- count structure which is independent of order size, should help minimize surplus inventory. Neverthe- less, Seco recognizes that surpluses may build from time to time. Ordered-in-error is generally defined to mean any Distributor or end-user error resulting in the purchase of an incorrect product or quantity of product. Seco will accept returns for the above reasons on a monthly basis under the following procedures and conditions: Procedures: • The Distributor must submit a list of mate- rial by using either the on line RMA Request or by sending a request to customer Service. The preferred method is that the request be completed and transmitted on-line. Whether submitting a RMA Request on-on- line or via email, phone or fax, all return requests must be pre- pre-approved by Customer Service. • Customer Service will provide the Distributor with a return • Return Material (RM) number, label, packing list and return material listing. • The return must have the pre-printed label clearly affixed to the return package, include the completed pre-printed packing list and is subject to inspection prior to issuance of credit. • The Distributor will be advised of any non-con- forming material. • A final credit will be issued by Credit & Claims, within 30 days of receipt of material. Conditions: • The frequency of returns is at the discretion of the distributor. • A handling fee of $25 will be charged for each return that has been submitted electronically through Seco’s website. A handling fee of $75 will be charged for each return request submit- xxx by telephone, fax, or email. • Total value of all returns is limited to 5% of the previous 12 months purchases. Seco will consider specific, unusual returns for exclusion from the 5% cap at the written request of the Distributor. Acceptance of returns excluded from the 5% cap are at the sole discretion of Seco. • Returns must be received at Seco within 30 days of the issuance of the RM number. After 30 days the RM number is no longer valid and a new request must be submitted. • Products must be purchased within the previ- ous 24 months from the date of return. • Material must be current stock standards (“S” or “E” status), new and newand unused, in original package quantity with the package seal unbro- xxx, and in resalable condition. • Quick response items with a “C” stock status are not returnable (see section 1.4). • A 10% repackaging charge will be applied, on a per item basis, for any item requiring repackag- ing. • Monthly returns are credited at an average price of all invoices and credits issued for the item within the past 24 months. • Material must be sent back freight pre-paid. • Material must be securely packaged for transit. Damage by the carrier is the responsibility of the Distributor. • No over shipments of pre-approved quantities are permitted. Under-shipments from ap- proved quantities are permitted. Any quantity in excess of pre-approved quantities must be held for the next return. • Any non-conforming material or not meeting the return conditions will be returned to the distributor. • No advance deductions are allowed. A credit memo must be issued to the Distributor from Credits & Collections before taking a deduc- tion. • Any unauthorized deduction or unresolved dispute will result in the loss of the 3% Prompt Pay component of the Business Practices dis- count. All outstanding issues must be resolved within 30 days from issuance of credit.