Common use of Production Capacity Clause in Contracts

Production Capacity. All manufacturing will be conducted at Seller's Salt Lake City, Utah facility unless otherwise agreed. Seller shall make available the necessary capacity at such facility to meet Buyer's production requirements, as provided by Buyer in Sections 4 and 5. Seller will notify Buyer on a [*] basis to confirm that capacity is available for the forecasted period for the following [*] Days and to advise Buyer of any capacity constraints for the remainder of the forecast period. Buyer agrees to not unreasonably withhold approval of additional production facilities in the event of extraordinary demand beyond Buyer's forecasts. However, to the extent Seller does not have sufficient capacity to meet Buyer's orders beyond forecast and minimum commitments, Seller will allocate capacity at the Salt Lake City facility pro-rata among Buyer and other customers, based on customer unit order volumes, and Buyer is under no obligation to approve the manufacture of Products at any other of Seller's locations if Buyer determines in its sole discretion that such location does not meet Buyer's business needs.

Production Capacity. All manufacturing will be conducted at Seller's Salt Lake City, Utah facility unless otherwise agreed. Seller shall make available the necessary capacity at such facility to meet Buyer's production requirements, as provided by Buyer in Sections 4 and 5. Seller will notify Buyer on a [*] basis to confirm that capacity is available for the forecasted period for the following [*] Days and to advise Buyer of any capacity constraints for the remainder of the forecast period. Buyer agrees to not unreasonably withhold approval of additional production facilities in the event of extraordinary demand beyond Buyer's forecasts. However, to the extent Seller does not have sufficient capacity to meet Buyer's orders beyond forecast and minimum commitments, Seller will allocate capacity at the Salt Lake City facility pro-rata among Buyer and other customers, based on customer unit order volumes, and Buyer is under no obligation to approve the manufacture of Products at any other of Seller's locations if Buyer determines in its sole discretion that such location does not meet Buyer's business needs.