Buyer and Seller therefore agree as follows:
1. Duration. The initial term of this Agreement will commence [DD MON YYYY] (the “Effective Date”) and expire [DD
MON YYYY]. Unless either party provides the other with written notice of non-renewal at least [six months] before the
expiration of the initial term of this Agreement, this Agreement will automatically continue in effect thereafter for rolling
one-year terms but will be terminable at any time by either party on at least six months’ written notice. Unless
otherwise agreed by the parties in writing, the terms of this Agreement (including pricing as described in Section 3) will
remain the same during any renewal term.
2. Quantity. Subject to the terms and conditions of this Agreement and Buyer’s scheduling agreements or purchase
orders issued in connection with this Agreement (the “Purchasing Documents”), Seller will manufacture, sell and supply
to Buyer, and, provided Seller meets its delivery and competitive pricing requirements, and delivers Products that meet
the applicable specifications and are of acceptable quality, reliability and durability, Buyer will purchase from Seller,
[100%] of Buyer’s requirements of the Products at Buyer’s facility(ies) located at [INSERT TENNECO FACILITY ADDRESS]
for the customer platform or vehicle program and Tenneco project/phase identified in Table A. Seller will build,
maintain, and hold [two (2) weeks’] worth of safety stock inventory for Products [manufactured in the country of
Buyer’s manufacturing facility and [four (4) weeks’] worth of safety stock inventory for Products imported into the
country of Buyer’s manufacturing facility. In addition, Seller will hold [four (4) weeks’] worth of safety stock inventory of
any Product components that are not manufactured in the country of Seller’s manufacturing facility.] One week of
safety stock will be calculated as the next 12 weeks’ forecast divided by 12. [Seller will at all times hold safety stock at
[OPTIONAL -- INSERT A LOCATION OTHER THAN SELLER’S PREMISES].]
3. Price. Product pricing will be as set forth in Table 3. Seller will make yearly price reductions as set forth in Table 3.
Except as may be expressly agreed otherwise by Buyer, Buyer is exempt from, and Seller will not impose, or threaten to
impose, any surcharge of any kind, including for changes in currency and exchange rates, or any costs associated with
the development, sourcing, production, delivery or sale of Products. If pricing is based on materials in the Products,
such material weights will be subject to audit. Any discrepancies between stated weights and actual weights will result
in a price adjustment charged back to Seller with costs.
Buyer and Seller therefore agree as follows:
1. Duration. The initial term of this Agreement will commence [DD MON YYYY] (the “Effective Date”) and expire [DD
MON YYYY]. Unless either party provides the other with written notice of non-renewal at least [six months] before the
expiration of the initial term of this Agreement, this Agreement will automatically continue in effect thereafter for rolling
one-year terms but will be terminable at any time by either party on at least six months’ written notice. Unless
otherwise agreed by the parties in writing, the terms of this Agreement (including pricing as described in Section 3) will
remain the same during any renewal term.
2. Quantity. Subject to the terms and conditions of this Agreement and Buyer’s scheduling agreements or purchase
orders issued in connection with this Agreement (the “Purchasing Documents”), Seller will manufacture, sell and supply
to Buyer, and, provided Seller meets its delivery and competitive pricing requirements, and delivers Products that meet
the applicable specifications and are of acceptable quality, reliability and durability, Buyer will purchase from Seller,
[100%] of Buyer’s requirements of the Products at Buyer’s facility(ies) located at [INSERT TENNECO FACILITY ADDRESS]
for the customer platform or vehicle program and Tenneco project/phase identified in Table A. Seller will build,
maintain, and hold [two (2) weeks’] worth of safety stock inventory for Products [manufactured in the country of
Buyer’s manufacturing facility and [four (4) weeks’] worth of safety stock inventory for Products imported into the
country of Buyer’s manufacturing facility. In addition, Seller will hold [four (4) weeks’] worth of safety stock inventory of
any Product components that are not manufactured in the country of Seller’s manufacturing facility.] One week of
safety stock will be calculated as the next 12 weeks’ forecast divided by 12. [Seller will at all times hold safety stock at
[OPTIONAL -- INSERT A LOCATION OTHER THAN SELLER’S PREMISES].]
3. Price. Product pricing will be as set forth in Table 3. Seller will make yearly price reductions as set forth in Table 3.
Except as may be expressly agreed otherwise by Buyer, Buyer is exempt from, and Seller will not impose, or threaten to
impose, any surcharge of any kind, including for changes in currency and exchange rates, or any costs associated with
the development, sourcing, production, delivery or sale of Products. If pricing is based on materials in the Products,
such material weights will be subject to audit. Any discrepancies between stated weights and actual weights will result
in a price adjustment charged back to Seller with costs.
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