Common use of Preferred Status Clause in Contracts

Preferred Status. 8.1 SmarTire shall provide preferred status to Visteon in accordance with: 8.1.1. If SmarTire is informed or becomes aware of a tire monitoring opportunity with an OEM customer, SmarTire shall contact Visteon to arrange for a presentation of the SmarTire-Visteon tire monitoring solution. 8.1.2. If SmarTire is informed or becomes aware of a tire monitoring opportunity with an OTHER CUSTOMER, SmarTire shall contact Visteon to discuss pursuit of the opportunity on a case-by-case basis per Articles 2.2.2 and 9.1.2 and Visteon shall not unreasonably withhold or delay advising SmarTire in writing or email of its intent to participate with this potential customer (objective is within five days of notification by SmarTire). In the event that Visteon declines to pursue the opportunity with SmarTire, then this customer shall be added to the list of EXCLUDED CUSTOMERS subject to later renegotiation per Article 2.4. 8.1.3. SmarTire shall make reasonable commercial efforts to work with Visteon to obtain the business in accordance with this agreement. 8.1.4. Notwithstanding the foregoing, if the OEM CUSTOMER requests that SmarTire PRODUCTS are to be used with a system provided by a different TIER 1 SUPPLIER than Visteon, or Visteon is unsuccessful in being placed on the OEM CUSTOMERS' bidders list winning the contract, or is desourced after the award of business, then SmarTire shall be permitted to work with the OEM CUSTOMER directly or with other TIER 1 SUPPLIERS to pursue the business opportunity. SmarTire may not avail itself to this provision during the first three (3) years of this Agreement without the agreement of both Visteon and SmarTire. 8.2 Visteon shall provide preferred status to SmarTire in accordance with: 8.2.1. If Visteon is informed or becomes aware of a tire monitoring opportunity with an OEM CUSTOMER, Visteon shall present the SmarTire-Visteon solution as the preferred solution for securing the business. 8.2.2. If Visteon is informed or becomes aware of a tire monitoring opportunity with an OTHER CUSTOMER, Visteon shall contact SmarTire to discuss pursuit of the opportunity on a case by case basis per Articles 2.2.2 and 9.1.2 8.2.3. Visteon shall make its reasonable commercial efforts to work with SmarTire to obtain the business in accordance with this agreement.