Common use of Cost Reduction Projects Clause in Contracts

Cost Reduction Projects. Flextronics agrees to seek ways to reduce the cost of manufacturing Products by methods such as elimination of Materials, revision of Specifications, identification of alternate vendors, and re-design of assembly or test methods. Upon implementation of such ways that have been initiated by Flextronics and approved by Customer, Flextronics will receive **** of the demonstrated cost reduction for ****. Customer will receive **** of the demonstrated cost reduction upon implementation of such ways initiated by Customer. Notwithstanding the foregoing, in the event that Customer is responsible for making a non-recurring expenditure in order to implement cost reduction procedures (whether initiated by Flextronics or Customer). Customer will receive **** of the demonstrated cost reduction upon implementation. **** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.