Common use of Engineering Charges Clause in Contracts

Engineering Charges. MFGR will amortize non-recoverable engineering ("NRE") costs to the price of the Product when implementing one time engineering changes. The amortization schedule, dollar amount to be amortized and the number of units of Product over which NRE cost will be amortized shall be mutually agreed by CUSTOMER and MFGR. Upon agreement of the parties, MFGR shall adjust the price to the formula provided in Exhibit A, and then add on the NRE amortization.