Common use of Margin Adjustment Clause in Contracts

Margin Adjustment. Spansion and Fujitsu agree to work in good faith to reduce the distribution margin as reflected in Sections 12.3 and 12.4 from **** to **** according to a schedule to be agreed upon by Spansion and Fujitsu, targeted to achieve such reduction in ****. The Parties understand and agree, however, that (a) such a reduction will not be possible unless Fujitsu’s Product sales in **** are at least ****, and (b) achievement of the **** sales level will not necessarily result in such a reduction.

Appears in 3 contracts

Sources: Distribution Agreement, Fujitsu Distribution Agreement (Spansion Inc.), Fujitsu Distribution Agreement (Spansion Inc.)