Common use of Cost Improvements Clause in Contracts

Cost Improvements. Promptly after a Product has been launched, LONZA will in good faith continuously seek to improve and reduce direct material costs, direct operating labor costs and indirect expenses attributable to the manufacture of the Product throughout the term of this Agreement and, at the request of MODERNA, provide MODERNA with written evidence demonstrating the efforts and activities undertaken by LONZA in furtherance thereof. LONZA and MODERNA agree to periodically, but not less than [***], review the cost of materials, labor, expenses and other matters that influence the price MODERNA pays for the Product and determine whether any price decreases may be appropriate. Upon the request of MODERNA, LONZA will provide to MODERNA reasonable evidence of any and all improvements as they are achieved and of the availability of any potential improvements hereunder. LONZA agrees to reflect and incorporate into this Agreement achieved price reductions realized by LONZA after the effective date of such price change. MODERNA and LONZA will set specific key performance indicators defining timing and percent reduction for the manufacture of the Product (“KPIs”) once a Product has been launched. KPIs may include, but are not limited to, manufacturing operations (including inventory reductions, process improvement, and lead-times), sourcing, international operations and logistics, and business practices. Progress of these goals will be reviewed periodically, but in any case no less than [***]. All savings achieved through these cost improvements by LONZA will be [***].

Cost Improvements. Promptly after xxxx a Product has been launched, LONZA will in good faith continuously confinuously seek to improve and reduce direct material costs, direct operating operafing labor costs and indirect expenses attributable atributable to the manufacture of the Product throughout the term of this Agreement and, at the request of MODERNA, provide MODERNA with written writen evidence demonstrating demonstrafing the efforts efforts and activities acfivifies undertaken by LONZA in furtherance thereof. LONZA and MODERNA agree to periodically, but not less than [***], review the cost of materials, labor, expenses and other matters maters that influence influence the price MODERNA pays for the Product and determine whether any price decreases may be appropriate. Upon the request of MODERNA, LONZA will provide to MODERNA reasonable evidence of any and all improvements as they are achieved and of the availability of any potential potenfial improvements hereunder. LONZA agrees to reflect reflect and incorporate into this Agreement achieved price reductions reducfions realized by LONZA after XXXXX xxxx the effective effecfive date of such price change. MODERNA and LONZA will set specific specific key performance indicators defining timing defining fiming and percent reduction reducfion for the manufacture of the Product (“KPIs”) once a Product has been launched. KPIs may include, but are not limited to, manufacturing operations operafions (including inventory reductionsreducfions, process improvement, and lead-timesfimes), sourcing, international operations internafional operafions and logisticslogisfics, and business practicespracfices. Progress of these goals will be reviewed periodically, but in any case no less than [***]. All savings achieved through these cost improvements by LONZA will be [***].