Common use of Minimum Commitment and Reserved Capacity Clause in Contracts

Minimum Commitment and Reserved Capacity. Licensor agrees to commit a minimum of fifty percent (50%) of its available production to Licensee during the first twelve (12) months after Licensee is established and ready for production in China. During the second twelve (12) months, the Licensor shall commit a minimum of twenty-five percent (25%) of its available production to Licensee. Licensee shall also reserve up to fifty percent (50%) of its capacity for production of Contracted Products of Licensor during the first twelve (12) months after Licensee is established and ready for production in China. During the second twelve (12) months, the Licensor shall commit a minimum of thirty-five percent (35%) of its available capacity to Licensor.