Common use of VOLUME PRICE ADJUSTMENTS Clause in Contracts

VOLUME PRICE ADJUSTMENTS. The Parties agree that if in any Quarter after the Initial Quarter the total unit volume of Products delivered to Customer and the total Standard Hours used to manufacture such Products: (a) both decline to more than ten percent (10%) below the total unit volume of Products manufactured and the total Standard Hours used to manufacture such Products in the Initial Quarter, the Parties shall meet and negotiate in good faith increases in future Product prices or other mechanisms to compensate Flextronics for the underabsorbtion of Flextronics' manufacturing overhead expenses caused by the decline and not covered by product purchases by other customers; or (b) both increase to more than ten percent (10%) above the total unit volume of Products manufactured and the total Standard Hours used to manufacture such Products in the Initial Quarter, the Parties shall meet and negotiate in good faith reductions in future Product prices to provide Customer with the benefit of the overabsorbtion of Flextronics' manufacturing overhead expenses caused by the increase.

VOLUME PRICE ADJUSTMENTS. The Parties agree that if in any Quarter after ------------------------ the Initial Quarter the total unit volume of Products delivered to Customer and the total Standard Hours used to manufacture such Products: (a) both decline to more than ten percent (10%) below the total unit volume of Products manufactured and the total Standard Hours used to manufacture such Products in the Initial Quarter, the Parties shall meet and negotiate in good faith increases in future Product prices or other mechanisms to compensate Flextronics for the underabsorbtion of Flextronics' manufacturing overhead expenses caused by the decline and not covered by product purchases by other customers; or (b) both increase to more than ten percent (10%) above the total unit volume of Products manufactured and the total Standard Hours used to manufacture such Products in the Initial Quarter, the Parties shall meet and negotiate in good faith reductions in future Product prices to provide Customer with the benefit of the overabsorbtion of Flextronics' manufacturing overhead expenses caused by the increase.