Annual Price Adjustments for All Core Products Beginning January 1, 2015. Beginning on January 1, 2015, and thereafter on each subsequent January 1, with respect to each Core Product then existing, the price shall be adjusted as set forth in this Section 13(E). The Parties agree to review and have reasonable discussions about the manufacturing process for the products to be produced by Diversified hereunder for sale to PLK, the Distributors, or the Franchisees or, subject to Section 10(C), Sales Outlets, at least annually regarding ways to improve efficiency and cost adjustments (whether cost increases or cost savings); however, PLK acknowledges and agrees that Diversified does not need to share any of its proprietary or confidential manufacturing processes and, to the extent that any such review reveals a proprietary or confidential manufacturing process of Diversified, PLK’s obligations with respect to the same shall be subject to Section 16. Any such expected cost savings shall be shared [***] between the Parties (the "Shared Cost Savings"), provided, however, that the benefit of any anticipated reduction in commodities prices, ingredients costs (other than pursuant to Section 13(C)), or packaging costs shall not be considered a cost savings for such purposes, but shall accrue [***] to PLK; the foregoing [***] sharing of the Shared Cost Savings is implemented in the pricing provisions in Section 13(E)(i)(e)(3) below. Several examples of [***] sharing of Shared Cost Savings are set forth in Schedule C. The Parties agree, however, that as part of the annual price adjustment in Section 13(E), as set forth in the examples in Schedule C, they shall take into account any Shared Cost Savings applied during any prior year or years that may no longer be applicable. Other possible cost savings as contemplated in Section 13(L) shall also be reviewed and considered at the time of the annual price adjustment.
