Common use of Nameplate Elimination Clause in Contracts

Nameplate Elimination. (a) If GM makes any public announcement (including a press release, a Form 8-K filing, a statement of GM management during an investor conference call, and a statement of GM management during a press conference) indicating that it is doing any of the following (each a “Nameplate Elimination”): considering, in the process of implementing (e.g., negotiating a sale agreement), implementing or attempting to implement (e.g., seeking offers from buyers) one or more strategic options (e.g., discontinue, phase-out, sell, etc.) generally, or a strategic option in particular, as to a vehicle nameplate brand (Buick, Cadillac, Chevrolet, Pontiac, GMC, Hummer, Saab, Saturn, or any future brand that the parties mutually agree should be considered for purposes of this Section 3.10), then GM will reimburse GMAC for actual incremental residual losses, or GMAC will reimburse GM for actual incremental residual gains, incurred by GMAC resulting from the Nameplate Elimination on all SmartLease and SmartBuy vehicles outstanding as of the date of GM’s public announcement of the Nameplate Elimination (each vehicle an “Eliminated Vehicle”) and any new contracts written between the announcement date and the earlier of (1) the next date that the ALG is updated to reflect a residual value that comprehends GM’s public announcement of the Nameplate Elimination, and (2) the date that is 3 months after GM’s public announcement of the Nameplate Elimination. The parties acknowledge that a Nameplate Elimination of Hummer, Saab, Saturn and Pontiac occurred as of the following dates, thereby triggering their obligations under this Section 3.10 as of those dates: