Common use of Non-Compete Clause Clause in Contracts

Non-Compete Clause. 1. During the term of this Agreement, Party B and Party C shall not provide the same services set forth in this Agreement to any other automakers that directly compete with Party A absent consent from Party A. 2. During the term of this Agreement, absent consent from Party B or Party C, Party A shall not source part or all of the services set forth in Article 1 from any other companies unless the following occurs: 1) The services provided by Party B and Party C fail to meet the requirements of Party A and continue to fail to meet Party A’s requirements upon Party A’s formal request for improvement; or 2) Significant losses are caused to Party A due to the material breach of contract by Party B or Party C.