Common use of Multi-Year Contracts Clause in Contracts

Multi-Year Contracts. In the event that IBM strategically sources a contract for Solectron that has a term that exceeds 12 months and that provides for multiple period over period reductions in the price to Solectron and provided further that the contract has been negotiated and structured by IBM in good faith to maximize the savings to Solectron and not to circumvent the provisions of Section 4.1(b)(i), above, IBM will be entitled to accrue savings to this contract after the limitations imposed by Section 4.1(b)(i) until such period over period reduction ends. For the purposes of Section 6 (Baseline), and in a manner consistent with Section 6.1 (Prior Period Price), the Baseline applicable to the savings that accrue after the limitation of Section 4.1(b)(i) shall be the price paid during the previous period, assuming the then-current market price for the product remains above the price paid during the previous period. [*] Confidential to Solectron and IBM * Omitted and filed separately with the SEC pursuant to a confidential treatment request

Multi-Year Contracts. In the event that IBM strategically tactically sources a contract for Solectron that has a term that exceeds 12 months and that provides for multiple period over period reductions in the price to Solectron and provided further that the contract has been negotiated and structured by IBM in good faith to maximize the savings to Solectron and not to circumvent the provisions of Section 4.1(b)(i4.2(b)(i), above, IBM will be entitled to accrue savings to this contract after the limitations imposed by Section 4.1(b)(i4.2(b)(i) until such period over period reduction ends. For the purposes of Section 6 (Baseline), and in a manner consistent with Section 6.1 (Prior Period Price), the Baseline applicable to the savings that accrue after the Confidential to Solectron and IBM * Omitted and filed separately with the SEC pursuant to a confidential treatment request limitation of Section 4.1(b)(i4.2(b)(i) shall be the price paid during the previous period, assuming the then-current market price for the product remains above the price paid during the previous period. [*] Confidential to Solectron and IBM * Omitted and filed separately with the SEC pursuant to a confidential treatment request]