Common use of Pricing Policy Clause in Contracts

Pricing Policy. According to the pricing policy adopted by the Seller, the Seller would collect market information on prices of wafers and determine a standard price list for its wafer products based on the Seller’s own situation every month. Sales of wafer products are generally made pursuant to the standard price list, subject to discount to be made to long term customers or customers who pay on a favorable payment terms. Such pricing policy shall equally apply to sales of wafers to connected persons and independent third parties, provided that the prices of wafer products sold to connected persons shall be no less than the average prices of wafer products sold to independent third party customers who purchase similar volume on similar payment terms during the same month. By following the pricing policy as set out above, wafers would be sold to the Buyer at a price that is consistent with the prices offered to other independent third party customers. In the circumstances, the Directors consider that the pricing policy can ensure that the sales of wafers to the Buyer will be conducted on normal commercial terms and not prejudicial to the interests of the Company and its minority Shareholders.