BESLY CUTTING TOOLS, INC.

520 Blackhawk Blvd #135
South Beloit, IL 61080

RETURNS POLICY

I. Definition

A. Returned goods at Besly Cutting Tools are considered standard off-the-shelf tools or special tools of our manufacture that for one of many reasons have been requested by a consumer or distributor to be returned for credit, alteration or replacement.

B. Returned goods fall into these main categories with the majority of returns and credits requested:

1. Shipped before release by customer
2. Excess Stock
3. Billing or coding errors
4. Ordered or shipped in error
5. Manufacturing errors, etc.

C. Returned goods such as standard off-the-shelf tools will be accepted within 90 days of purchase when a request has been submitted and approved by a Customer Service representative prior to the return (Please call us at 800-435-2965 or 815-389-2231).

Exception: An authorized distributor may return tools for credit or replacement without prior approval only for one of the following reasons:

1. Shipping error
2. Shipping wrong tools
3. Manufacturing error
4. Damaged tools

II. Returned Goods Procedure for Authorized Distributors

A. Tools of our manufacture (such as drills, taps, end mills, reamers, etc.) may be exchanged by an authorized distributor within a maximum of one year from the date of purchase, not to exceed an amount equivalent to 5 percent of the previous years purchases in the same product category. This procedure of returned goods will be permitted on an annual basis. The return procedure has been set up on a semi-monthly period by region, and inventory adjustment will be allowed only during the months shown below by region.

REGION: MONTHS FOR RETURN
A-B: March and April
C: July and August
D: September and October
E: November and December
F-G: January and February

There will be no inventory adjustments authorized during the months of May and June.

An additional 10 percent handling charge will be made to cover inspection and handling costs. Such an exchange will be made at the purchasing price less 10 percent, or at the current net price less 10 percent, whichever is lower. Also, a purchase order for equal dollar amount of standard cutting tools should accompany the returned goods. Besly Cutting Tools will drop the 10 percent handling charge if the offsetting purchase order is double the dollar amount being returned.

The following procedure should be followed providing:

1. Request from authorized distributors must be made through our Customer Service representatives prior to returning any tools for credit and/or replacement.

2. The distributor purchase order number, the Besly sales order number and invoice date are a must and must be shown on all paperwork.

3. On receipt of the distributor request, and assuming approval has been authorized for tool return, the Customer Service department will send an authorization letter with a list of items that can be returned and an authorization number that must be referenced on all paperwork including offsetting purchase order.

4. The tools returned to Besly must be in saleable condition, packaged in original packages and shipped to South Beloit prepaid.

5. Cutting tools altered in any way (secondary heat treatments or ground to customers requirements) may not be returned even though they are sold at standard prices.

6. Special tools made to a customers specifications and tools made to other than industry standards may not be returned.

7. When mistakes are made in purchasing of standard tools, these tools may be returned for credit or replacement at the prices paid, providing the request for their return is made within 30 days of the date of the invoice on which they were filled, and providing these standard tools have not been modified.

III. Agreement

It is understood that specials, altered, etched tools and tools with secondary treatments will not be accepted for credit or replacement unless they are manufacturing errors. No tools will be accepted in our receiving department without prior approval and all necessary paperwork attached.


Effective December 1, 2005
Besly Cutting Tools Inc.
520 Blackhawk Blvd #135
South Beloit, Il 61080