Common use of Component Costs Clause in Contracts

Component Costs. If Patheon incurs an increase in Component costs during the Year, it may increase the Price for the next Year to pass through the additional Component costs. If Patheon’s Component costs decrease during a Year, Client will have the right to require a decrease in the Price for the next Year to pass through the reduced Component costs. On or about November 1st of each Year, Patheon will give Client information about any increase (or decrease) in Component costs, which will be applied to the calculation of the Price for the next Year, which information, in the case of a cost increase, will reasonably demonstrate that the Price increase is justified. But Patheon will not be required to give information to Client that is subject to obligations of confidentiality between Patheon and its suppliers. If requested by Client, Patheon will use commercially reasonable efforts to obtain permission to disclose this information to Client, or, where applicable, will provide this information to Client with appropriate redactions