Common use of 1B BUSINESS PRACTICES Clause in Contracts

1B BUSINESS PRACTICES. The Business Practices functional discounts are intended to encompass various transactional aspects of the Seco/Distributor relationship. The two components of the Business Practices discount are the prompt payment of invoices and the utilization of electronic commerce. SIX MONTH PURCHASES $0-$149,000 VOLUME ($M) $150,000 & UP Base Discount Group A 27% 33% Base Discount Group B 25% 31% Base Discount Group C 23% 29% Functional Discounts Business Practices Prompt Pay 3% 3% Electronic Commerce 2% 2% Market Data 4% 4% GoldStar Distributor 3% 3% Subtotal Functional Discount 12% 12% Total Discount Group A 39% 45% Total Discount Group B 37% 42% Total Discount Group C 35% 41% Qualification for prompt payment of invoices is as follows: • Payment of all invoices must be in good U.S. funds and received in our lockbox within 30 days after the invoice date. The frequency of payment within these parameters is at the Dis- tributor’s discretion. • A suggested payment schedule to maintain payment within terms is located in the xxxxx- xxx. • Any condition which results in less than full payment must be brought to the attention of the Credit Department within this same 30 day period and fully resolved within 60 days after the invoice date. Payments in dispute under the Monthly Return Practice, which may result in the loss of the Business Practices functional discount, are subject to resolution in accor- dance with the Monthly Return Practice (Sec- tion 2.7). • Orders for meeting competitive situations (see 1.6) and orders for contract accounts (see 1.7) are also subject to the prompt payment requirements. A 1% discount reduction will be applied to all contract and meet comp order discounts for distributors who fail to qualify for the prompt pay discount. Remitting by check: Seco Tools, LLC Dept CH 19622 Palatine, IL 60055-9622 Remitting by overnight courier service: Seco Tools, LLC Lockbox 19622 0000 X. Xxxxxxxxxx Xxx, Xxx 000 At the end of each calendar quarter, the amount of Seco inventory that you have on hand must be reported to the Distribution Development Department using the Quarterly Inventory Reporting Form (# QCF-92) to: xxx.xx@xxxxxxxxx.xxx.

1B BUSINESS PRACTICES. The Business Practices functional discounts are intended to encompass various transactional aspects of the Seco/Distributor relationship. The two components of the Business Practices discount are the prompt payment of invoices and the utilization of electronic commerce. SIX MONTH PURCHASES $0-$149,000 VOLUME ($M) $150,000 & UP Base Discount Group A 27% 33% Base Discount Group B 25% 31% Base Discount Group C 23% 29% Functional Discounts Business Practices Prompt Pay 3% 3% Electronic Commerce 2% 2% Market Data 4% 4% GoldStar Distributor 3% 3% Subtotal Functional Discount 12% 12% Total Discount Group A 39% 45% Total Discount Group B 37% 42% Total Discount Group C 35% 41% Qualification for prompt payment of invoices is as follows: • Payment of all invoices must be in good U.S. funds and received in our lockbox within 30 days after the invoice date. The frequency of payment within these parameters is at the Dis- tributor’s discretion. • A suggested payment schedule to maintain payment within terms is located in the xxxxx- xxx. • Any condition which results in less than full payment must be brought to the attention of the Credit Department within this same 30 day period and fully resolved within 60 days after the invoice date. Payments in dispute under the Monthly Return Practice, which may result in the loss of the Business Practices functional discount, are subject to resolution in accor- dance with the Monthly Return Practice (Sec- tion 2.7). • Orders for meeting competitive situations (see 1.6) and orders for contract accounts (see 1.7) are also subject to the prompt payment requirements. A 1% discount reduction will be applied to all contract and meet comp order discounts Canadian customers paying in Canadian dollars should use the below information for distributors who fail to qualify for the prompt pay discount. Remitting by checkremitting payments: Intermediary Bank: Royal Bank of Canada 000 Xxxxxxxxxx Xxxxxx Xxxx Xxxxxxx X0X 0X0 Xxxxxx SWIFT Code: XXXXXXX0XXX Beneficiary Bank: Nordea Bank Finland Plc- New York Branch 000 Xxxxxxx Xxxxxx Xxx Xxxx, XX 00000 SWIFT: NDEAUS3N Beneficiary: Seco Tools, LLC Dept CH 19622 Palatine0000 Xxxxxxxxxx Xxxxx Xxxx, IL 60055-9622 Remitting by overnight courier serviceXX 00000 Beneficiary Acct #: 4026363101 For CAD EFT payments and wires within Canada, the following instructions should be used: Credit to: Royal Bank of Canada 000 Xxxxx Xxxxxx Xxxx Xxxxxxx, XX X0X 0X0 Bank Code: 003 Transit #: 09591 Beneficiary: Seco Tools, LLC Beneficiary Acct # : 1047554 Lockbox 19622 0000 X. Xxxxxxxxxx Xxx, Xxx 000 At the end of each calendar quarter, the amount of Seco inventory that you have on hand must Remittance Address: Regular mail payments to be reported to the Distribution Development Department using the Quarterly Inventory Reporting Form (# QCF-92) sent to: xxx.xx@xxxxxxxxx.xxxSeco Tools X/X X00000X XX Xxx 0000, Xxxxxxx X Xxxxxxx, XX X0X 0X0 If your customer is sending the payment via an overnight courier the address is: Toronto Wholesale Remittance Dept 0 Xxxxxx Xxxxxx Place Toronto, ON M3C 2H4 Attn: Seco Tools X/X X00000X Please email any questions to: xx.xx@xxxxxxxxx.xxx Qualifications for the electronic commerce discount are as follows: • The placement of purchase orders using electronic commerce. Orders placed directly to Seco by traditional EDI, Activant TPCx or the Seco Online Store all qualify for the EC discount. A minimum 75% of order lines placed using electronic commerce is required to qualify.

1B BUSINESS PRACTICES. The Business Practices functional discounts are intended to encompass various transactional aspects of the Seco/Distributor relationship. The two components of the Business Practices discount are the prompt payment of invoices and the utilization of electronic commerce. SIX MONTH PURCHASES $0-$149,000 VOLUME ($M) $150,000 & UP Base Discount Group A 27% 33% Base Discount Group B 25% 31% Base Discount Group C 23% 29% Functional Discounts Business Practices Prompt Pay 3% 3% Electronic Commerce 2% 2% Market Data 4% 4% GoldStar Distributor 3% 3% Subtotal Functional Discount 12% 12% Total Discount Group A 39% 45% Total Discount Group B 37% 42% Total Discount Group C 35% 41% Qualification for prompt payment of invoices is as follows: • Payment of all invoices must be in good U.S. funds and received in our lockbox within 30 days after the invoice date. The frequency of payment within these parameters is at the Dis- tributor’s discretion. • A suggested payment schedule to maintain payment within terms is located in the xxxxx- xxx. • Any condition which results in less than full payment must be brought to the attention of the Credit Department within this same 30 day period and fully resolved within 60 days after the invoice date. Payments in dispute under the Monthly Return Practice, which may result in the loss of the Business Practices functional discount, are subject to resolution in accor- dance with the Monthly Return Practice (Sec- tion 2.7). • Orders for meeting competitive situations (see 1.6) and orders for contract accounts (see 1.7) are also subject to the prompt payment requirements. A 1% discount reduction will be applied to all contract and meet comp order discounts for distributors who fail to qualify for the prompt pay discount. Remitting by check: Seco Tools, LLC Dept CH 19622 Palatine, IL 60055-9622 Remitting by overnight courier service: Seco Tools, LLC Lockbox 19622 0000 X. Xxxxxxxxxx Xxx, Xxx 000 At the end of each calendar quarterXxxxxxx, the amount of Seco inventory that you have on hand must be reported to the Distribution Development Department using the Quarterly Inventory Reporting Form XX 00000-0000 Remitting by wire transfer (ACH, EFT): Nordea Bank Finland PLC-New York Branch 000 Xxxxxxx Xxxxxx Xxx Xxxx, XX 00000 SWIFT: NDEAUS3N ABA/ROUTING# QCF-92) 000000000 ACCT# 4026363001 Please send ACH and EFT details to: xxx.xx@xxxxxxxxx.xxxxx.xx@xxxxxxxxx.xxx Please email any questions to: xx.xx@xxxxxxxxx.xxx Qualifications for the electronic commerce discount are as follows: • The placement of purchase orders using electronic commerce. Orders placed directly to Seco by traditional EDI, Activant TPCx or the Seco Online Store all qualify for the EC discount. A minimum 75% of order lines placed using electronic commerce is required to qualify.

1B BUSINESS PRACTICES. The Business Practices functional discounts are intended to encompass various transactional aspects of the Seco/Distributor relationship. The two components of the Business Practices discount are the prompt payment of invoices and the utilization of electronic commerce. SIX MONTH PURCHASES $0-$149,000 VOLUME ($M) $150,000 & UP Base Discount Group A 27% 33% Base Discount Group B 25% 31% Base Discount Group C 23% 29% Functional Discounts Business Practices Prompt Pay 3% 3% Electronic Commerce 2% 2% Market Data 4% 4% GoldStar Distributor 3% 3% Subtotal Functional Discount 12% 12% Total Discount Group A 39% 45% Total Discount Group B 37% 42% Total Discount Group C 35% 41% Qualification for prompt payment of invoices is as follows: • Payment of all invoices must be in good U.S. funds and received in our lockbox within 30 60 days after the invoice date. The frequency of payment within these parameters is at the Dis- tributorDistributor’s discretion. • A suggested payment schedule to maintain payment within terms is located in the xxxxx- xxx. • Any condition which results in less than full payment must be brought to the attention of the Credit Department within this same 30 60 day period and fully resolved within 60 90 days after the invoice date. Payments in dispute under the Monthly Return Practice, which may result in the loss of the Business Practices functional discount, are subject to resolution in accor- dance with the Monthly Return Practice (Sec- tion 2.7). • Orders for meeting competitive situations (see 1.6) and orders for contract accounts (see 1.7) are also subject to the prompt payment requirements. A 1% discount reduction will be applied to all contract and meet comp order discounts for distributors who fail to qualify for the prompt pay discount. Remitting Remittance of Payment by checkWire Transfer (ACH, EFT) - Preferred Method Beneficiary: Seco ToolsTools de Mexico, LLC Dept CH 19622 PalatineS.A de C.V Doctor Xxxx Xxxxxxxxx Xxxxxxxx Xx. Xxxxxxxxxx X°. 0000-0 Mitras Norte, IL 60055X.X. 00000 Xxxxxx Xxxxxxxxx, Xxxxx Xxxx, México Receiving Bank: Nordea Bank Finland Plc-9622 Remitting by overnight courier serviceNew York Branch 1211 Avenue of the Xxxxxxxx 00xx Xxxxx Xxx Xxxx, XX 00000 Swift: Seco Tools, LLC Lockbox 19622 0000 X. Xxxxxxxxxx Xxx, Xxx 000 At the end of each calendar quarter, the amount of Seco inventory that you have on hand must be reported to the Distribution Development Department using the Quarterly Inventory Reporting Form (NDEAUS3N: ABA/Routing # QCF-92) : 000000000 Beneficiary Acct#: 4079323001 Please send ACH and EFT details to: xxx.xx@xxxxxxxxx.xxxxx.xx@xxxxxxxxx.xxx Please email any questions to: xx.xx@xxxxxxxxx.xxx Qualifications for the electronic commerce discount are as follows: • The placement of purchase orders using electronic commerce. Orders placed directly to Seco Tools de Mexico by traditional EDI, Activant TPCx or the Seco Online Store all qualify for the EC discount. A minimum 75% of order lines placed using electronic commerce is required to qualify.