Capacity Increases Clause Samples
The Capacity Increases clause defines the terms under which the amount of service, product, or resource provided under an agreement can be expanded beyond the original scope. Typically, this clause outlines the process for requesting additional capacity, any notice requirements, and how pricing or payment adjustments will be handled for the increased amount. For example, a cloud services contract might allow a customer to purchase more storage or bandwidth as their needs grow, subject to certain conditions. The core function of this clause is to provide a clear and agreed-upon mechanism for scaling up services, ensuring both parties understand how increases are managed and billed, and preventing disputes over future expansions.
Capacity Increases. The Parties acknowledge and agree that for each Product Group and Produce SKU, as applicable, Supplier shall not be required to supply an amount of Product in any Fiscal Year in excess of the amount set forth under the heading Maximum Allowable Purchase Cap in the Statement of Work.
Capacity Increases. Notwithstanding anything to the contrary in this Agreement, until SpinCo’s first delivery of a Yearly Base Forecast that includes at least [* * *] billion units of Product less than the Maximum Allowable Purchase Cap, SpinCo may notify Parent no more than once per twelve (12)-month period during the Term that SpinCo desires for Parent to increase its manufacturing capacity and make a corresponding increase to the Maximum Allowable Purchase Cap and the Yearly Maximum Purchases for one or more Product Groups and corresponding Product SKUs. Following the Parties’ agreement upon mutually agreeable terms with respect to any such capacity increase, including the allocation of costs with respect thereto and the anticipated timing of completion thereof (which shall be no less than [* * *] months from the date of such agreement), Parent will undertake such capacity increase in accordance with such agreed terms, at a facility of Parent’s choosing, subject to the timely payment by SpinCo of all costs allocated to SpinCo associated therewith; provided that at no time will Parent have any obligation to increase its manufacturing capacity to produce more than [* * *] billion units of Product in any [* * *] month period.
Capacity Increases. The provisions of this Section 4.3 shall not apply to a Subsequent Modification which increases or decreases the capacity of the Facility. Such Subsequent Modification shall require the submission of an Interconnection Request.
Capacity Increases. The provisions of this Section 4.3 shall not apply to any Generator modifications that result in an increase in the capacity of a Facility or a Substantial Modification to a Facility, as defined by Manitoba Hydro technical requirements document DRG2003 as may be amended or replaced from time to time. Such modifications shall require the submission of an Interconnection Request pursuant to the Distributed Resource Interconnection Procedures.