Common use of QUARTERLY PRICE ADJUSTMENTS Clause in Contracts

QUARTERLY PRICE ADJUSTMENTS. Until the expiration of the initial term of this Agreement, prices for all Products delivered under this Agreement shall be adjusted at the beginning of each Quarter after the Initial Quarter, with the adjusted price for each Product calculated as follows: Adjusted Price = (Repricing BOM Value + Adjusted Overhead) x 100/95 provided that the Adjusted Price for each Product price shall never exceed the price for that Product in the prior Quarter, except to the extent that a higher price results because of market forces affecting the BOM Value that can be confirmed by independent industry benchmarks. Flextronics shall notify Customer of its proposed Adjusted Price for a Quarter fifteen (15) days before the beginning of the Quarter (the "Repricing Notice"). Customer may require Flextronics to explain or provide documentation in support of the proposed Adjusted Price before the Quarterly Review Meeting, and the Parties shall negotiate in good faith any differences regarding the Adjusted Price for a Quarter at the Quarterly Review Meeting. The Adjusted Prices finally agreed to by the Parties shall apply to all Products delivered by Flextronics to Customer during that Quarter. An example calculation of the Adjusted Price for a Product is attached as Exhibit D.

QUARTERLY PRICE ADJUSTMENTS. Until the expiration of the initial term of --------------------------- this Agreement, prices for all Products delivered under this Agreement shall be adjusted at the beginning of each Quarter after the Initial Quarter, with the adjusted price for each Product calculated as follows: Adjusted Price = (Repricing BOM Value + Adjusted Overhead) x 100/95 provided that the Adjusted Price for each Product price shall never exceed the price for that Product in the prior Quarter, except to the extent that a higher price results because of market forces affecting the BOM Value that can be confirmed by independent industry benchmarks. Flextronics shall notify Customer of its proposed Adjusted Price for a Quarter fifteen (15) days before the beginning of the Quarter (the "Repricing Notice"). Customer may require Flextronics to explain or provide documentation in support of the proposed Adjusted Price before the Quarterly Review Meeting, and the Parties shall negotiate in good faith any differences regarding the Adjusted Price for a Quarter at the Quarterly Review Meeting. The Adjusted Prices finally agreed to by the Parties shall apply to all Products delivered by Flextronics to Customer during that Quarter. An example calculation of the Adjusted Price for a Product is attached as Exhibit D.