Common use of Cost of Products Clause in Contracts

Cost of Products. The cost of Products to the Distributor shall be the Supplier Price. The Supplier reserves the right to increase prices by giving the Distributor at least ninety (90) days notice, but such cost increase will only occur if the Total Cost that comprises the Supplier Price increases and will not be due to any increase in the markup. These changes will be deemed accepted unless the Distributor objects in writing during the ninety (90) day notice period. If the Distributor objects, the Supplier will notify the Distributor whether the Supplier desires to: (i) continue to sell on the previous terms; or (ii) wishes to renegotiate the changes with the Distributor. During any negotiations, prices and terms will be those contained in the notice. If negotiations are not completed within fifteen (15) days after the ninety (90) day notice period has expired, either party may terminate this Agreement on written notice to the other party.