Common use of Equitable Reduction Clause in Contracts

Equitable Reduction. In addition to the quarterly Flextronics cost reductions described above, Flextronics will make equitable adjustments to Customer’s prices for Products and Services if costs are decreased due to productivity or process improvements or as a result of design changes initiated by Customer. Such cost reductions will generate price reductions for all applicable Products ordered by Customer after implementation. For the above, “implementation” will be defined as the date on which Flextronics ships the Product containing the designed changed Products Unless otherwise noted in this Agreement or in a separate agreement signed by the parties, the unit price includes all charges for the Products(s), any related deliverable items and Services, and packaging.