hours at the
Distributor's place of business by, among other things, reviewing the
Distributor's applicable books and records. Upon verification of Distributor's
claim for credit, Altera shall issue a credit to Distributor's account.
8.5 Procedure for Submitting Claims for Credit.
(a) Distributor must submit its claims for the following types of credits within
[ * ] of the following:
(i) Price Discrepancies: the date of any invoice that contains a price
discrepancy; or
(ii) SSD (ship from stock debit): sales out date.
Altera will not honor any claims for credit submitted after the [ * ] period.
(b) All claims for credit must specify the invoice number(s) to which the claim
applies.
(c) [ * ]
9. STOCK ROTATION AND RETURNS
9.1 Return of Products. [ * ] that Distributor's inventory is overstocked with
certain Products, Distributor may return such Products to Altera pursuant to
subparagraph 9.2. Products that are obsolete or discontinued may be returned
pursuant to subparagraph 9.3 of this Agreement.
7
Confidential Treatment Requested
Omitted Portions Marked with [ * ] and Filed Separately with the SEC
Returns of Products that are permitted in connection with the termination of
this Agreement are subject to paragraph 15. All returns require a Return
Material Authorization ("RMA").
Distributor shall bear all risk of loss or damage during shipment of returned
Products and shall ship returned Products in accordance with Altera's reasonable
instructions.
Altera will credit distributor's account in the amount of the net price paid by
Distributor for the returned Products after Altera receives the Products and
verifies their quantity and quality. All returned Products must be unused,
undamaged, and in sealed, factory-shipped boxes. Distributor may not take any
deductions from payments due to Altera before Altera has issued a credit to
Distributor; Altera will charge interest at the rate of one-and-one-half percent
(1.5%) per month or at the maximum rate permitted by law, whichever is less,
from the date that Distributor makes any unauthorized deductions.
9.2 Procedure for Stock Rotations. At regular six-month intervals, Altera will
accept a Stock Rotation return from Distributor for the purpose of clearing
Distributor's inventory of Product that in Distributor's good faith judgment is
unlikely to be sold. Under this provision, Distributor may return to Altera
Product valued at up to [ * ] to Distributor for the six months prior to the
Stock Rotation. A certain percentage of this amount may be allocated to scrap in
accordance with the guidelines established by Altera in the Distributor Policies
and Procedures Manual. [*]
9.3 Obsolete and Discontinued Products. Altera may render obsolete or
discontinue the manufacture and/or sale of any Product ("Discontinued Product")
and shall notify Distributor of any Discontinued Product. Distributor shall have
the right to return Discontinued Product to Altera. Within thirty (30) days of
the last date that orders will be accepted, Distributor shall notify Altera of
Distributor's intention to return any Discontinued Product in its inventory
which were purchased by Distributor from Altera.
9.4 Administrative Procedures for Returns. Product returns