Joint Incentive Program definition
Joint Incentive Program shall have the meaning set forth in new Sub-Section 2.10A of the ACMA set forth at Sub-Section 6.1 hereof.
Joint Incentive Program. In addition to the principles set out in Sub-Section 2.10 with respect to the purchase and supply of materials, either Party may propose any cost savings initiative designed to lead to an on-going reduction in *****. Any such proposal shall be governed by a joint incentive program designed to allow the Parties to share in its benefits and incentivise both BATUS Japan and RJRTC to optimise costs (the “Joint Incentive Program”). The Joint Incentive Program will be based on the Gain Share Principle and shall apply to any area of the business, subject to compliance with all applicable laws and regulations. It shall be governed by a joint steering team of individuals nominated by the Parties, and all initiatives shall be subject to approval by both Parties. Any development costs associated with the proposed initiative shall be borne equally by both Parties (save as otherwise agreed in writing between the Parties). For the avoidance of doubt, any cost saving initiatives already in progress as of December 31, 2012 shall be excluded from the Joint Incentive Program. Allocation of savings realised though cost savings initiatives subject to the Gain Share Principle shall be accomplished through an adjustment to the Product price for affected SKUs for the first twelve (12) months following implementation of the initiative. Such adjustments shall be applied, for those twelve (12) months only, after (and in addition to) application of the provisions of Sub-Section 2.3(d).”