Cost Reduction Initiatives Clause Samples

Cost Reduction Initiatives. 17.1 Value Engineering - Seller may from time to time submit proposals to Buyer to decrease Seller's performance costs or produce a net reduction in the cost to Buyer of the Goods. Provided, that such change shall not impair any essential functions or characteristics of the goods being purchased.

Cost Reduction Initiatives. Subject to the terms and conditions set forth in this Agreement, Continental will provide services as set forth below in Section 2(a) through (m) of this Agreement pursuant to separate agreements. Current agreements between the Carriers with respect to the services identified in Section 2(a) through (m) are listed on Schedule 1 hereto. Any agreements to be negotiated in the future will be negotiated at arms-length, will contain mutually acceptable provisions typically applicable to such agreements, will not necessarily be coterminous with this Agreement, will not contain any cross-default clauses with respect to this Agreement or the Shareholders Agreement, will not permit COPA to transfer services and equipment to third parties and will adequately address COPA’s concern that it have notice of termination of the agreements sufficient enough to allow COPA to transition to alternative service providers. Unless otherwise stated, services will be provided as follows: (a) Services provided directly by Continental to COPA. Upon reasonable request by COPA, Continental will provide the services specified in Section 2 below to COPA, as permitted by Continental’s applicable contracts. Except as otherwise provided herein, services provided to COPA directly by Continental will be priced at Continental’s Incremental Cost as defined below. (b) Services provided by a third party. Wherever contractually permitted (except as otherwise provided herein), Continental will provide COPA access to the same third party vendor arrangements as are available to Continental at the cost charged to Continental, plus any additional costs incurred by Continental, provided that such access will not adversely impact Continental with respect to pricing or availability. For current contracts under which COPA does not have access, and for future contracts as appropriate, Continental will use commercially reasonable efforts to permit COPA to obtain the same benefits as Continental under such contracts, provided doing so will not adversely impact Continental.

Cost Reduction Initiatives. In addition to other cost reduction mechanisms provided herein, both parties shall establish mutually agreed cost reduction targets on an annual basis prior to the beginning of Zebra’s fiscal year by methods such as elimination of Materials, obtaining alternate sources of Materials, redefining Specifications, and improved assembly or test methods. The cost targets will consist of specific cost reduction initiatives mutually identified by both parties. These initiatives will be broken down by achievable target dates and tracked on a quarterly basis. An ongoing measurement shall be established to track cumulative quarterly costs savings. The format for establishing and tracking the various cost savings initiatives is detailed in Exhibit L. [*** Redacted] The parties shall mutually agree on the responsibility for any investment costs related to a particular cost savings initiative prior to beginning such cost savings initiative. All changes to implement cost reductions must be approved by Zebra in advance and must be in compliance with the ▇▇▇▇ of Materials approved by Zebra and the Approved Vendor List.

Cost Reduction Initiatives. LIFT and Qarbon Aerospace shall work together throughout the Term of the Agreement to identify and agree on potential cost-saving design changes with the goal of reducing both Parties' costs. For any cost-savings initiatives that require changes to the design or technical requirements, the Parties shall agree on an appropriate cost sharing after Qarbon Aerospace recovers its implementation costs. Formal adjustment to the price shall not be made until the appropriate adjustment, if any, is determined by mutual agreement. Nothing in this provision shall prevent LIFT from directing a change in accordance with the Buyer Direct Changes provision of this Section 7. For the avoidance of doubt, there will be no adjustment to the price as a result of cost reduction initiatives that do not involve changes to the design or technical requirements.

Cost Reduction Initiatives. Seller agrees to work with Buyer to identify and implement at least 3% in cost reductions for each calendar year during the Term. This percentage annual cost reduction will be based upon the actual total delivered cost per unit to Buyer on January 1 of each year. Seller shall provide the necessary personnel and/or technical resources required to assist Buyer with implementation of the identified savings. If Seller does not assist Buyer with identifying and implementing the 3% annual cost reductions, then Buyer reserves the right to terminate this Agreement.

Cost Reduction Initiatives. KeHE and SFM will agree to work in good faith to modify business practices to reduce costs across the system. Both parties agree that any cost benefit achieved directly or indirectly by joint cost reduction practices will be [*CONFIDENTIAL*]. A request for confidential treatment has been made with respect to portions of the following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC.