Common use of Most Favored Pricing Clause in Contracts

Most Favored Pricing. (a) This Section 5.8(a) shall apply to Software Products which Seagate bundles with Seagate products, and only with respect to such bundling. Software Copies of these Software Products which are not so bundled shall be subject to Section 5.8(b) below: (i) With respect to Base Software Products and OEM Software Products, Seagate will be entitled to purchase or license each such Software Product at the lowest rate or price at which VERITAS provides the Software Product, or any similar, competitive, or replacement Software Product, to any third party, regardless of the type, quantity, volume and terms under which such Software Products are provided to third parties, provided that this shall not apply to Software Products provided by VERITAS to strategic partners at no charge or a nominal fee. (ii) With respect to all other Software Products (i.e., Application Software Products, which Seagate ordinarily would not bundle), Seagate will be entitled to purchase or license each such Software Product at a mutually agreeable, economically attractive (to Seagate) price, considering Seagate's hardware margin requirements and volumes, but also considering VERITAS' reliance on these Application Products for a substantial portion of its revenue as well as VERITAS' desire to maintain multiple channels of distribution for such products. (b) With respect to all Software Products which are not subject to Section 5.8(a) above, Seagate will be entitled to purchase or license each such Software Product at the lowest rate or price at which VERITAS provides the Software Product, or any similar, competitive, or replacement Software Product, to any similarly situated third party for similar volumes. (c) VERITAS agrees that if it charges a lower such royalty to any applicable third party during the term of this Agreement for the same or any similar or competitive product, it will immediately notify Seagate in writing and Seagate shall be entitled to amend this Agreement to provide the lower royalty to Seagate thereafter.