Common use of SUPPLY SECURITY Clause in Contracts

SUPPLY SECURITY. Section 11.1 IP shall endeavor to maintain Adequate Supply at the Transferred ▇▇▇▇▇ and Supporting Facilities in accordance with the Inventory Targets mutually agreed upon per Section 7.1. For purposes of this Agreement, “Adequate Supply” shall mean Inventory levels sufficient to ensure supply security for Sylvamo and to protect against any slow down or shut down of Sylvamo’s operations at the Transferred ▇▇▇▇▇. As Inventory levels decrease and become more critical, IP and Sylvamo shall increase communications and collaboration in order to ensure supply security. Specifically, if Inventory levels for any specific category of Product decrease to sixty-six percent (66%) of the target Inventory level, IP and Sylvamo will meet, review options and agree on actions to mitigate the chances of failure of supply. At forty percent (40%) of the target Inventory level, without limiting any other rights hereunder, Sylvamo shall have the right to approve all contingency sourcing procedures that the parties have discussed and determined will ensure supply security, or Sylvamo may request that IP take certain actions necessary to ensure the supply security, which such request IP cannot unreasonably reject, withhold, condition, or delay. In the event that wood supply across a Transferred Mill and its applicable Area ▇▇▇▇▇ is insufficient to satisfy the combined demand, IP agrees to allocate the available fiber proportional to demand, across the Transferred Mill and its applicable Area ▇▇▇▇▇, to the extent practical, so that Sylvamo and the Transferred Mill is neither advantaged or disadvantaged relative to an Area Mill.