Common use of Continue to Manufacture Clause in Contracts

Continue to Manufacture. During the Term, Supplier will continue to manufacture and deliver the Component Parts for each Customer in accordance with the terms of the applicable Purchase Order. Supplier agrees to notify a Customer of any threat to continued timely shipment of such Customer promptly upon learning of that threat. Supplier will allocate its capacity and resources equitably among the Customers, with no one Customer receiving priority allocation. For the avoidance of doubt, Supplier will not reject or terminate any Purchase Order with the Customers during the Term, and any such rejection or termination will cause an Event of Default as to the affected Customer pursuant to Section 12(b) hereof. The Supplier also agrees not to spend or transfer any funds provided by Customers, nor any of the proceeds of Supplier’s approved debtor-in-possession financing, to Supplier’s non-North American affiliates during the Term.

Appears in 2 contracts

Sources: Accommodation Agreement, Accommodation Agreement

Continue to Manufacture. During the Term, Supplier will continue to manufacture and deliver the Component Parts for each Customer in accordance with the terms of the applicable Purchase Order. Supplier agrees to notify a Customer of any threat to continued timely shipment of such Component Parts to Customer promptly upon learning of that threat. Supplier will allocate its capacity and resources equitably among the Customersall of its customers, with no one Customer customer receiving priority allocation. For the avoidance of doubt, Supplier will not reject or terminate any Purchase Order with the Customers Customer during the Term, and any such rejection or termination will cause an Event of Default as to the affected Customer pursuant to Section 12(b) hereof. The Supplier also agrees that during the Term and prior to the Closing Date, it will not to spend or transfer any funds provided by Customers, nor any of Customer in accordance with this Agreement to other regions in which Supplier operates other than the proceeds of Supplier’s approved debtor-in-possession financing, to Supplier’s non-North American affiliates during the TermAmerica region.

Appears in 1 contract

Sources: Accommodation Agreement