Common use of Recognized Change Clause in Contracts

Recognized Change. The parties hereto recognize that it may become necessary or desirable from time to time that a then existing incentive be adjusted or replaced because of changes in equipment, changes in manufacturing processes or in materials processed or in methods or standards of manufacture or production, the development of new manufacturing processes or methods, or mechanical improvements made by the Company in the interest of improved methods or products. Whenever any of such changes or such other events occurs and for that reason the Management shall deem it necessary or desirable to adjust an existing incentive (or, if appropriate in view of the changes, to replace an existing incentive plan), the Management shall establish a new incentive in accordance with the procedure set forth in paragraph (d) of this Section. Such new incentive shall be based upon the applicable standard hourly wage rate and shall provide equitable compensation,* provided that, giving due effect to the change or other event by reason of which the new incentive shall have been established, the new incentive shall be designed to provide compensation (including all guarantees, allowances and payments in connection with such new incentive) at least equal to the compensation that would have been provided under the incentive which it replaced.