Common use of Gain Sharing Clause in Contracts

Gain Sharing. ACS and Customer will bring forward proposals (each an “Improvement Proposal”) which improve the efficiency of the delivery of the Services and that are commercially reasonable under prevailing industry practices and standards applicable to the services in question. To the extent Customer and ACS agree to implement any such Improvement Proposal, and such Improvement Proposal results in an increase in ACS’ profit margin in an amount (the “Excess Amount”) which is greater than twenty-five percent (25%) of the current average profit margin to date, then Customer and ACS agree to share equally in such Excess Amount.

Appears in 2 contracts

Sources: Master Agreement for Business Process Outsourcing Services, Master Agreement for Business Process Outsourcing Services (Office Depot Inc)