Common use of Capacity Constraints Clause in Contracts

Capacity Constraints. Certain Products for which Shared Tooling will be used (“Shared Products”) are available from suppliers in limited quantities and may be subject to capacity constraints. If, at any time, Gateway’s and MPC’s combined demand for a Shared Product exceeds the amount available from the supplier, then the supply of that Shared Product will be allocated eighty percent (80%) to Gateway and twenty percent (20%) to MPC (“Allocated Percentages”). However, if a Party’s demand for the Shared Product is less than its Allocated Percentage, then the difference between its demand and its Allocated Percentage shall go to the other Party.

Appears in 4 contracts

Samples: Limited License Agreement (MPC Corp), Asset Purchase Agreement (Gateway Inc), Limited License Agreement (MPC Corp)

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