Common use of Capacity Allocation Clause in Contracts

Capacity Allocation. In the event HMRI, upon receiving a forecast pursuant to Section 2.6 or a firm order pursuant to Section 2.7, is or anticipates that it will be unable to meet such forecast or firm order, either in whole or in part, then HMRI shall give written notice of such inability to Rugby within ten (10) days of receipt of such forecast or firm order. HMRI and Rugby shall meet within ten (10) days of such written notice to consider alternatives for meeting Rugby's requirements for Product, including but not limited to the sharing of the cost to expand HMRI's manufacturing capacity.

Capacity Allocation. In the event HMRI, upon receiving a forecast pursuant to Section 2.6 3.5 or a firm order pursuant to Section 2.73.6, is or anticipates that it will be unable to meet such forecast or firm order, either in whole or in part, then HMRI shall give written notice of such inability to Rugby within ten (10) days of receipt of such forecast or firm order. HMRI and Rugby shall meet within ten (10) days of such written notice to consider alternatives for meeting Rugby's requirements for Product, including but not limited to the sharing of the cost to expand HMRI's manufacturing capacity.