Common use of CONTRACT ACCOUNT DISCOUNTS Clause in Contracts

CONTRACT ACCOUNT DISCOUNTS. In competitive situations which require a broad reduction in price for a period of time, a “contract account” discount may be available. A Distributor may submit a proposal to Seco for its consideration of discretionary contract account meeting-competi- tion price support. Also, Seco may offer the Dis- tributor an opportunity to participate in a contract account arrangement with the customer. The Distributor may or may not choose to participate in the contract account opportunity. Regardless of whether Seco or the Distributor is the initiator, meeting-competition pricing will be authorized by Seco only if necessary to respond to a competitive situation. Contract account discounts are limited to the specific customer account and meeting- competition situation. In any case, it is always in the economic interest of the initiator to strive for a minimum discount reduction and a maximum volume commitment within the competitive situa- tion. The Distributor’s discount for standard and special products will be 15%. It is intended that the discount apply to the negotiated final resale price. To initiate consideration for discount support, contact your Seco Technical Specialist. To assure the best service to the end-user, the selection of a single Distributor is preferred and shall be made by the end-user and/or Seco. A 1% reduction in the Distributor’s discount will be applied to con- tract account discounts for Distributors who fail to meet the requirements necessary to qualify for the prompt pay functional discount on their orders for standard carbide inserts. (see 1.1b)