Cost Reduction Plan Sample Clauses
A Cost Reduction Plan clause outlines the procedures and expectations for reducing expenses within a project or contractual relationship. Typically, it requires one or both parties to identify, propose, and implement measures that lower costs without compromising agreed standards or deliverables. For example, this may involve streamlining processes, renegotiating supplier contracts, or adopting more efficient technologies. The core function of this clause is to ensure ongoing efforts to control and minimize costs, thereby protecting the financial interests of the parties involved.
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Cost Reduction Plan. The Borrower shall consult with the Control Agent and the other Lenders to develop a definitive plan (the “Cost Reduction Plan”), pursuant to documentation acceptable to the Majority Lenders in their sole discretion, by which the Borrower will undertake to significantly reduce its operating expenditures in a manner approved by the other Credit Parties. Toward that end, as a condition to the effectiveness of this Agreement, the Borrower shall have delivered to the Control Agent and the other Lenders a final copy of the Cost Reduction Plan in form and substance acceptable to the Control Agent and the other Lenders on or before the date of execution of this Agreement. The terms of the Cost Reduction Plan shall be incorporated into this Agreement as though set forth herein in full, and the failure to comply with the terms thereof shall constitute a default under this Agreement and an Event of Default under the Credit Agreement and the other Loan Documents. Any reduction in operating expenditures under the Cost Reduction Plan shall be reflected in an amended Budgeted Cash Flow in form and substance acceptable to the Majority Lenders in accordance with the Section 4(b) hereof. The Credit Parties acknowledge that the Cost Reduction Plan is necessary to salvage the value of the Borrower’s business and its assets and, absent such a Cost Reduction Plan, the Credit Parties would be unable to provide the Control Agent and the other Lenders with adequate protection of the Collateral.
Cost Reduction Plan. Borrowers shall at all times continue to comply with the provisions of the 2015 cost reduction plan approved by the board of directors of Empeiria (and a copy of which has been delivered to Agent on or prior to the date hereof). Borrowers shall promptly notify Agent of any modifications to such 2015 cost reduction plan which are subsequently approved by the board of directors of Empeiria.
Cost Reduction Plan. Borrowers shall at all times comply in all respects with the provisions of the cost reduction plan approved by the board of directors of Empeiria, which shall be in form and substance satisfactory to Agent and Lenders (it being agreed that the cost reduction plan delivere to Agent and included in the board resolutions of the Borrowers attached to the Secretary’s Certificate delivered pursuant to Section 2.01(b) hereof is satisfactory to Agent and Lenders).
Cost Reduction Plan. Borrowers shall at all times continue to comply with the provisions of the cost reduction plan approved by the board of directors of IDE Holdings Corp., which shall be in form and substance satisfactory to Agent and Lenders. Borrowers shall promptly notify Agent of any modifications to such cost reduction plan which are subsequently approved by the board of directors of IDE Holdings Corp.
Cost Reduction Plan. The Parties shall meet from time to time, but no less than [***] annually, to seek initiatives to improve quality of the Product and/or to reduce material, labor and other costs, and the Parties shall work reasonably after such meeting to implement such initiatives. For each such initiative, the following shall be subject to mutual agreement: the capital and expense to implement the initiative, the Party to provide funds for such capital and expense, the expected cost savings to result, and an equitable sharing of the cost and other benefits from the initiative after recoupment of the funds provided for the initiative (which sharing shall take into account a reasonable return on investment for the party providing the funds to implement such initiative).
Cost Reduction Plan. During the term of this Agreement, SUPPLIER will review cost structures with VA LINUX [*].
Cost Reduction Plan. Should Hikma Manufacture or the Parties desire to Manufacture the Product in a batch size larger than [***], the Parties shall meet to seek initiatives to improve quality of the Product and/or to reduce material, labor and other costs, and the Parties shall work to implement such initiatives and work to reduce the Purchase Price, which shall be as set forth in an amendment agreed to by the Parties. For each such initiative, the following shall be subject to mutual agreement: the capital and expense to implement the initiative, the Party to provide funds for such capital and expense, and the expected cost savings to result.
Cost Reduction Plan. Borrowers shall at all times comply in all respects with with the provisions of the cost reduction plan approved by the board of directors of IDE Holdings Corp. which shall be in form and substance satisfactory to Agent and Lenders (it being agreed that the cost reduction plan included in the board resolutions of the Borrowers attached to the Secretary’s Certificate delivered pursuant to Section 2.01(b) hereof is satisfactory to Agent and Lenders).