Common use of Cost Reduction Clause in Contracts

Cost Reduction. Both parties shall endeavor to reduce the costs of MATERIALs furnished under this Agreement. If design, labor or material cost reductions result from Company initiated changes or the sharing by Supplier of other Company supplier agreements, [***] percent ([***]%) of the cost reduction(s) shall be passed onto Company in the form of reduced prices, except that if the cost reduction results from Supplier initiated changes, Supplier shall furnish to Company a complete list of expenses that Supplier incurred in effecting said cost reduction, if any. Supplier shall be entitled to receive the benefits of the cost reduction for the time period required to recover its implementation expenses.

Cost Reduction. Both parties shall endeavor to reduce the costs of MATERIALs products furnished under this Agreement. If design, labor or material cost reductions result from Company initiated changes or the sharing by Supplier of other Company supplier agreements, [***] percent ([***]%) of the cost reduction(s) shall be passed onto Company in the form of reduced prices, except that if the cost reduction results from Supplier initiated changes, Supplier shall furnish to Company a complete list of expenses that Supplier incurred in effecting said cost reduction, if any. Supplier shall be entitled to receive the benefits of the cost reduction for the time period required to recover its implementation expenses.