Common use of Returns Provisions Clause in Contracts

Returns Provisions. (a) No Products will be eligible for return if they are manufactured and/or procured by the Company for purchase by the Service Provider based solely upon Service Provider's marketing and sales data or are part of the <PAGE> DISTRIBUTION SERVICES AGREEMENT Rolls-Royce Corporation Page 13 initial inventory procurement except for those part numbers noted on Exhibit B. (b) Newly issued part numbers and/or parts involved in a reliability campaign will be eligible for return after 24 months of part number or campaign introduction if and only if 1) Company has unilaterally determined Service Provider's stocking level and 2) remaining stock exceeds 24 month's usage. If parts meet these requirements, Service Provider may return all remaining inventory. No restocking charges will apply to such returns. (c) Products rendered obsolete due to Company's redesign with a must conform classification will be eligible for return by the Service Provider. (d) Product defined above as eligible for return must be in "new" condition in the original packaging as supplied by the Company; such packaging may not be damaged, broken or in any way tampered with except for ordinary wear incurred in shipping. The Company shall pay to Service Provider in U.S. Dollars an amount equal to the average inventory cost of the items returned under this section less restocking charges not to exceed ***% of list price. (e) The Company has the right to market and sell any products the Service Provider returns in accordance with the above provisions. 8.

Returns Provisions. (a) No Products will be eligible for return if they are manufactured and/or procured by the Company for purchase by the Service Provider based solely upon Service Provider's marketing and sales data or are part of the <PAGE> DISTRIBUTION SERVICES AGREEMENT Rolls-Royce Corporation Page 13 initial inventory procurement except for those part numbers noted on Exhibit B. (b) Newly issued part numbers and/or parts involved in a reliability campaign will be eligible for return after 24 months of part number or campaign introduction if and only if 1) Company has unilaterally determined Service Provider's stocking level and 2) remaining stock exceeds 24 month's usage. If parts meet these requirements, Service Provider may return all remaining inventory. No restocking charges will apply to such returns. (c) Products rendered obsolete due to Company's redesign with a must conform classification will be eligible for return by the Service Provider. (d) Product defined above as eligible for return must be in "new" condition in the original packaging as supplied by the Company; such packaging may not be damaged, broken or in any way tampered with except for ordinary wear incurred in shipping. The Company shall pay to Service Provider in U.S. Dollars an amount equal to the average inventory cost of the items returned under this section less restocking charges not to exceed ***% of list price. (e) The Company has the right to market and sell any products the Service Provider returns in accordance with the above provisions. 8.