Common use of Component Costs Clause in Contracts

Component Costs. If Patheon incurs an increase or realizes a decrease in Component costs during the Year, it may increase (in the event of a Component cost increase) and shall decrease (in the event of a Component cost decrease) the Price for the next Year to pass through the additional Component costs or savings (as applicable). Patheon will give Indivior information about the increase or decrease in Component costs which will be applied to the calculation of the Price for the next Year to reasonably demonstrate that the Price adjustment is justified. In the event of an increase, the pass through of the additional Component costs to Indivior will be such that it matches Patheon’s cost. In the event of a decrease, Patheon and Indivior will equally share the benefit of such savings