CUSTOMER CREDIT LIMIT Sample Clauses

CUSTOMER CREDIT LIMIT. 11.1 The Customer acknowledges that Celestica, in the performance of its obligations under this Agreement, will incur financial obligations on behalf of the Customer. The parties agree that Celestica will, before it incurs financial obligations on behalf of the Customer, and from time to time, establish, and advise the Customer in writing (which may require a review of Customer’s financial statements or other metrics for the purposes of credit assessment) the Customer’s credit limit with Celestica. Customer agrees to operate within the credit limit established by Celestica. In the event that Customer’s financial liability exceeds the amount of this credit limit, Celestica will give Customer notice of its default of this condition and, if not remedied within 7 Days, Celestica has the right to take appropriate action to reduce its financial obligations.

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CUSTOMER CREDIT LIMIT. 13.1 The Credit Limit will be initially established at Seventeen Million United States Dollars (US$17,000,000) and will be reviewed weekly by Celestica and Customer. Should Celestica reasonably determine that Customer's Total Liability Exposure exceeds the Credit Limit, Celestica will notify Customer in writing that it has exceeded the Credit Limit and grant Customer three (3) business days to either pay Celestica a satisfactory amount of cash, post a satisfactory amount of additional security or take other action satisfactory to Celestica to reduce its Total Liability Exposure below the Credit Limit. Notwithstanding any provisions of this Section or any other Section of this Agreement, Customer and Celestica agree that if Customer has been notified by Celestica that it has exceeded its Credit Limit and does not, within 3 days of such notice, either pay Celestica a satisfactory amount of cash, post a satisfactory amount of additional security or take other action satisfactory to Celestica to reduce its Total Liability Exposure to an amount which is less than the Credit Limit, Celestica may, subject to Section 13.3, draw down the Letter of Credit in an amount sufficient to reduce Customer's Total Liability Exposure to an amount which is less than the Credit Limit and, if that draw down of the Letter of Credit is not sufficient to reduce Customer's Total Liability Exposure to an amount which is less than the Credit Limit, Celestica may, upon advance notice to Customer, suspend the ordering of Materials required by the Transition Build Plan and, if Customer has not, as provided above, within three (3) days of receipt of notice from Celestica, taken action satisfactory to Celestica to reduce its Total Liability Exposure below the Credit Limit, Celestica may charge Customer a financing charge in the amount of 1.5% per month of the dollar amount by which Customer or C&D Parent have exceeded the Credit Limit. Within two days of either payment or posting of additional security by Customer or C&D Parent, the parties will meet to agree on a plan to complete the Transition Build Plan in the most expeditious manner possible.

CUSTOMER CREDIT LIMIT. The Customer acknowledges that Celestica, in the performance of its obligations under this Agreement will incur financial obligations on behalf of the Customer. The parties agree that Celestica will, before it incurs financial obligations on behalf of the Customer, and from time to time, establish and agree the Customer’s credit limit with Celestica. The credit limit will be established after consultation between Customer and Celestica. Customer agrees to operate within its credit limit. In the event that Customer’s financial liability exceeds the amount of this credit limit, Celestica will give Customer notice of its default of this condition and, if not remedied within seven (7) days, Celestica has the right to take appropriate action to reduce its financial obligations. Notwithstanding the above, Celestica will not be entitled to suspend performance of its obligations if Celestica is in default in achieving an agreed milestone in the applicable statement of work.

CUSTOMER CREDIT LIMIT. 11.1 Celestica shall establish and from time to time advise Customer and each Ordering Company in writing of Customer's (together with the Ordering Companies') credit limit with Celestica (the "Customer Credit Limit"). Customer agrees that the aggregate Financial Liability (as defined below) of Customer and each Ordering Company under this Agreement shall not at any time exceed the Customer Credit Limit.

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