Common use of Cost Reduction Plan Clause in Contracts

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).