Amount and Calculation. Reactor Gallons up to a maximum of [*] ---------------------- per calendar year will be deemed Flex Capacity for purposes of the additional payment due Supplier as provided in this Section 5.3(a) if Reactor Gallons included in the Firm Capacity Committed for a given calendar year exceed the number of Contract Reservation plus Additional Purchased Capacity Reactor Gallons for that year. For each Reactor Gallon treated as Flex Capacity and any Additional Purchased Capacity, GWI shall pay to Supplier an amount equal to [*] The effective rate per Reactor Gallon then charged by Supplier to its other customers shall be determined in good faith by the mutual agreement of the parties, taking into account all amounts (other than amounts equal to Supplier's costs for any materials calculated in a manner consistent with the provisions of the second sentence of Section 5.2(a)) [*] or otherwise reserved for that customer. In determining such effective rate, the parties shall consider and appropriately account for the effect, if any, of any special pricing arrangements with the customer.
Appears in 2 contracts
Sources: Supply Agreement (Catalytica Inc), Supply Agreement (Catalytica Inc)