Common use of INITIAL STOCK ORDER RETURNS Clause in Contracts

INITIAL STOCK ORDER RETURNS. Seco recognizes the need for new Distributors to put in an initial inventory of products to support a Distributor start-up. Seco encourages new Distrib- utors to consult the local Technical Specialist or Application Engineer to help define the require- ments of the local market and build its initial inventory based on those needs. Nevertheless, selection of this inventory is speculative and may result in surplus or dormant stock. Distributors are encouraged to keep these initial inventory purchases low and build inventories as demand and experience develop. However, a single initial stock order will be accepted with the approval of the Regional Manager. Any product purchased on this initial order may be returned at any time up to 6 months from the date of in- voice. This one-time return will not count against the monthly return limit, nor will a handling charge apply. The return must be pre-approved and an RM number obtained. Seco is committed to a strong working relationship with its Distributor channel partners. Eliminating redundant activities and costs, clearly defining our roles and responsibilities, and jointly bringing value-added services to the end-user customer are keys to our success in today’s competitive environ- ment. We recognize the importance of open communica- tion and will continue to support an ongoing dia- xxxxx including the Distributor Advisory Council and the Distributor Conference. The commitment to Customer Service, Functional Business Practice Excellence, Certified Pro3 STEP training, and Partnership and Promotion of Seco products and services exemplified by Seco’s GoldStar Distribu- tors serves as a common business philosophy. The following business practices are designed to imple- ment this philosophy.