Common use of PALLET COMMITMENT Clause in Contracts

PALLET COMMITMENT. For the term of the contract, CUSTOMER will commit to a monthly pallet minimum of [***]. ROLLING PALLET FORECAST. Quarterly, CUSTOMER will provide D2000 with a rolling pallet forecast [***] . D2000 guarantees that they will make available to the CUSTOMER the greater of [***] pallets or [***]% of the forecast (MAX PALLET LEVEL). If D2000 does not have enough available spaces, D2000 must find comparable storage and must compensate CUSTOMER for any additional costs incurred by the CUSTOMER to store these pallets outside of the FACILITY. If CUSTOMER’S pallet requirements exceed the MAX ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ will provide CUSTOMER access to any available open pallet spaces but is not obligated under this Agreement to guarantee storage for these pallets if open spaces are not available in the FACILITY. GAIN SHARING BONUS. Annually, Parties will mutually develop Supply Chain/Operational Improvement and Cost Savings projects for the upcoming fiscal year. These projects, detailed on Appendix C, will be jointly supervised by the Parties and led by the Operations Manager at D2000. The GAIN SHARING PROJECTS contain measureable savings and/or productivity targets agreed to by Parties for D2000 to achieve and to be eligible for the GAIN SHARING BONUS. The GAIN SHARING BONUS allocates any measureable savings [***] once the projects targets are met. D2000 will submit monthly status reports and project milestones will be reviewed as part of the QUARTERLY RECONCILIATION. CUSTOMER has the right at its sole discretion and expense, to utilize its employees or outside consultants to aid D2000 in achieving these targets. Any costs for this assistance shall be deducted from any savings prior to the GAIN SHARING BONUS calculation. If CUSTOMER feels that measureable progress is not being made by D2000 toward meeting the GAIN SHARING PROJECTS targets, CUSTOMER may upon giving[***] ) days’ written notice identifying specifically the basis for such notice, terminate this BONUS and immediately change the CSM compensation charge to a prorated basis as defined above.

PALLET COMMITMENT. For the term of the contract, CUSTOMER will commit to a monthly pallet minimum of [***]. ROLLING PALLET FORECAST. Quarterly, CUSTOMER will provide D2000 with a rolling pallet forecast forecast[***] . D2000 guarantees that they will make available to the CUSTOMER the greater of [***] pallets or [***]% of the forecast (MAX PALLET LEVEL). If D2000 does not have enough available spaces, D2000 must find comparable storage and must compensate CUSTOMER for any additional costs incurred by the CUSTOMER to store these pallets outside of the FACILITY. If CUSTOMER’S pallet requirements exceed the MAX ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ will provide CUSTOMER access to any available open pallet spaces but is not obligated under this Agreement to guarantee storage for these pallets if open spaces are not available in the FACILITY. GAIN SHARING BONUS. Annually, Parties will mutually develop Supply Chain/Operational Improvement and Cost Savings projects for the upcoming fiscal year. These projects, detailed on Appendix C, will be jointly supervised by the Parties and led by the Operations Manager at D2000. The GAIN SHARING PROJECTS contain measureable savings and/or productivity targets agreed to by Parties for D2000 to achieve and to be eligible for the GAIN SHARING BONUS. The GAIN SHARING BONUS allocates any measureable savings [***] once the projects targets are met. D2000 will submit monthly status reports and project milestones will be reviewed as part of the QUARTERLY RECONCILIATION. CUSTOMER has the right at its sole discretion and expense, to utilize its employees or outside consultants to aid D2000 in achieving these targets. Any costs for this assistance shall be deducted from any savings prior to the GAIN SHARING BONUS calculation. If CUSTOMER feels that measureable progress is not being made by D2000 toward meeting the GAIN SHARING PROJECTS targets, CUSTOMER may upon givinggiving [***] ) days’ written notice identifying specifically the basis for such notice, terminate this BONUS and immediately change the CSM compensation charge to a prorated basis as defined above.