Common use of Commitment for GM Requirements Clause in Contracts

Commitment for GM Requirements. For the term of this Agreement, ------------------------------ subject to paragraphs 1.2(d)(iii) and 1.2(e) of this Agreement, DRA agrees to sell and GM agrees to purchase one hundred percent (100%) of GM's production and current production model service requirements for Components in the United States and Canada. Additionally, DRA agrees, and commits through its purchase offer, to capacitize its operations to the full extent of GM's requirements for such Components; and shall not rebill GM for the cost of any tooling or equipment transferred pursuant to the Asset Purchase Agreement. Separate provisions will be negotiated for service parts currently distributed by AC Delco and/or GM Service Parts Operations. To the extent that GM purchases any Components indirectly (e.g., incorporated into a sub-assembly 1.1 For purposes of this Agreement, the term "Components" shall mean any one or more of the motor vehicle components listed in the Supply Schedule attached hereto as Annex "A", plus any other new or replacement component which is required by GM for use as original equipment or service parts between the effective date of this Agreement and July 31, 1997, provided, however, that "Components" shall not include (i) remanufactured motor vehicle heavy duty starter motors and parts and sub-assemblies, and (ii) motor vehicle heavy duty starter motors and parts and assemblies for past model service.