Common use of Cost Reduction Projects Clause in Contracts

Cost Reduction Projects. Flextronics agrees to seek ways to reduce the cost of manufacturing Product by methods such as elimination of Materials, redefinition of Specifications, and re-design of assembly or test methods. Flextronics shall submit a written proposal to Customer for each proposed method for reducing the cost of manufacturing Product. Such proposal shall include sufficient detail regarding such proposed method to allow Customer to determine whether the proposed method will require prior approval from any governmental or regulatory authority. Flextronics may not implement any such proposed method until it receives the written approval of Customer. Upon approval by Customer and implementation of such ways that have been proposed by Flextronics, Flextronics will receive [****] of the demonstrated cost reduction and Customer shall receive the remaining [****] of the demonstrated cost reduction. Customer will receive [****] of the demonstrated cost reduction upon implementation of such ways initiated by Customer.