Common use of TEST TOOL PROGRAM Clause in Contracts

TEST TOOL PROGRAM. Seco offers a test program as a benefit for distribu- tors who have a Certified Pro3 Product Specialist on staff. Seco aims at helping distributors’ person- nel gain test opportunities with their customers and grow their business. An end user who has seen our tools perform and discussed its capabilities with your sales people will have the highest interest in ordering more. In support of this practice, certified distributors will receive a test budget at the beginning of each calendar year. The budget amount is 0.8% of the previous year’s total purchases, with the minimum budget being $1,000. Steel and carbide items may be purchased against this budget, under the guidelines described below. Order Process • All test orders must be faxed or emailed to cus- tomer service (no e-commerce). • It is important that the order is clearly identi- fied as “test” so it can be processed accordingly. • All orders must reference the end user whom the test is for. • Test inserts may be ordered in less than full package quantities. Minimum partial order quantity will be 2 pieces of any specific insert – no exceptions. Traceability on partial packages will not be guaranteed. • The test budget, which is renewed annually as long as the distributor remains CP3 certified, will be reduced by the list price value of each product ordered under the test program. The test budget will be credited back after the test is proven successful (see billing/credit process). • When the annual budget has been consumed, this test option is no longer available until it is renewed the following year. Billing / Credit Process • Orders will ship at no cost to the distributors. The amount of the test tools ordered will be deducted from the available test budget in list price value. • The distributor will have 90 days to provide Seco with test results. • In case of a successful test, the tools ordered will be invoiced to the distributor. All prod- ucts will be invoiced at regular net pricing. Once the invoice is issued, the list price value of the items ordered will be credited back to the distributor’s test budget. • If the test failed, no invoice will be issued to the distributor and the test tool budget will not be credited back. • Products ordered for tests will automatically be invoiced after 90 days, if no test result is provided by the distributor. The test budget will then be credited back. Return Process • Returns will be accepted only for the items that were not tested. • All products must be new and in resalable condition and cannot have been mounted on a machine. • No inserts purchased in partial quantities qualify for return. • The Distributor will submit the RMA request to customer service, preferably via email. Please indicate that the item was purchased for Test. Also indicate the Purchase Order number or Seco’s reference number within your request. • There is no fee for a Test return and it is not subject to the 5% return limit. • Except as noted above, the conditions detailed in section 2.7 of Seco’s Distributor Practices apply to Test returns.

TEST TOOL PROGRAM. Seco offers a test program as a benefit for distribu- tors who have a Certified Pro3 Product Specialist on staff. Seco aims at helping distributors’ person- nel gain test opportunities with their customers and grow their business. An end user who has seen our tools perform and discussed its capabilities with your sales people will have the highest interest in ordering more. In support of this practice, certified distributors will receive a test budget at the beginning of each calendar year. The budget amount is 0.8% of the previous year’s total purchases, with the minimum budget being $1,000. Steel and carbide items may be purchased against this budget, under the guidelines described below. Order Process • All test orders must be faxed or emailed to cus- tomer service (no e-commerce). • It is important that the order is clearly identi- fied as “test” so it can be processed accordingly. • All orders must reference the end user whom the test is for. • Test inserts may must be ordered in less than full package quantities. Minimum partial order quantity will be 2 pieces of any specific insert – no exceptions. Traceability on partial packages will not be guaranteedonly. • The test budget, which is renewed annually as long as the distributor remains CP3 certified, will be reduced by the list price value of each product ordered under the test program. The test budget will be credited back after the test is proven successful (see billing/credit process). • When the annual budget has been consumed, this test option is no longer available until it is renewed the following year. Billing / Credit Process • Orders will ship at no cost to the distributors. The amount of the test tools ordered will be deducted from the available test budget in list price value. • The distributor will have 90 days to provide Seco with test results. • In case of a successful test, the tools ordered will be invoiced to the distributor. All prod- ucts will be invoiced at regular net pricing. Once the invoice is issued, the list price value of the items ordered will be credited back to the distributor’s test budget. • If the test failed, no invoice will be issued to the distributor and the test tool budget will not be credited back. • Products ordered for tests will automatically be invoiced after 90 days, if no test result is provided by the distributor. The test budget will then be credited back. Return Process • Returns will be accepted only for the items that were not tested. • All products must be new and in resalable condition and cannot have been mounted on a machine. • No inserts purchased in partial quantities broken packs qualify for return. • The Distributor will submit the RMA request to customer service, preferably via email. Please indicate that the item was purchased for Test. Also indicate the Purchase Order number or Seco’s reference number within your request. • There is no fee for a Test return and it is not subject to the 5% return limit. • Except as noted above, the conditions detailed in section 2.7 of Seco’s Distributor Practices apply to Test returns.

TEST TOOL PROGRAM. Seco offers a test program as a benefit for distribu- tors who have a Certified Pro3 Product Specialist on staff. Seco aims at helping distributors’ person- nel gain test opportunities with their customers and grow their business. An end user who has seen our tools perform and discussed its capabilities with your sales people will have the highest interest in ordering more. In support of this practice, certified distributors will receive a test budget at the beginning of each calendar year. The budget amount is 0.8% of the previous year’s total purchases, with the minimum budget being $1,000. Steel and carbide items may be purchased against this budget, under the guidelines described below. Order Process • All test orders must be faxed or emailed to cus- tomer service (no e-commerce). • It is important that the order is clearly identi- fied as “test” so it can be processed accordingly. • All orders must reference the end user whom the test is for. • Test inserts may must be ordered in less than full package quantities. Minimum partial order quantity will be 2 pieces of any specific insert – no exceptions. Traceability on partial packages will not be guaranteedquantity. • The test budget, which is renewed annually as long as the distributor remains CP3 certified, will be reduced by the list price value of each product ordered under the test program. The test budget will be credited back after the test is proven successful (see billing/credit process). • When the annual budget has been consumed, this test option is no longer available until it is renewed the following year. Billing / Credit Process • Orders will ship at no cost to the distributors. The amount of the test tools ordered will be deducted from the available test budget in list price value. • The distributor will have 90 days to provide Seco with test results. • In case of a successful test, the tools ordered will be invoiced to the distributor. All prod- ucts will be invoiced at regular net pricing. Once the invoice is issued, the list price value of the items ordered will be credited back to the distributor’s test budget. • If the test failed, no invoice will be issued to the distributor and the test tool budget will not be credited back. • Products ordered for tests will automatically be invoiced after 90 days, if no test result is provided by the distributor. The test budget will then be credited back. Return Process • Returns will be accepted only for the items that were not tested. • All products must be new and in resalable condition and cannot have been mounted on a machine. • No inserts purchased in partial quantities broken packs qualify for return. • The Distributor will submit the RMA request to customer service, preferably via email. Please indicate that the item was purchased for Test. Also indicate the Purchase Order number or Seco’s reference number within your request. • There is no fee for a Test return and it is not subject to the 5% return limit. • Except as noted above, the conditions detailed in section 2.7 of Seco’s Distributor Practices apply to Test returns.