Common use of Engineering Fees Clause in Contracts

Engineering Fees. Licensor shall provide Licensee with engineering support services (“Engineering Support”) according to the scope defined in Schedule C hereto (“Engineering Scope of Work”) in exchange for an amount equal to to SIX PERCENT (6%) of Licensee’s total construction costs (“Engineering Fees”); provided, however, that the Engineering Fees shall equal THREE PERCENT (3%) of Licensee’s total construction costs if the Licensed Facility’s annualized nameplace process feedstock capacity is less than 250,000 MTPY. Licensee shall make an initial payment of TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) against the Engineering Fees within ten (10) days of the Effective Date hereof (“Phase 1 Engineering Fee”). Licensor shall thereafter complete and deliver or cause to be completed and delivered the first phase of engineering deliverables stated in the Engineering Scope of Work within ninety (90) days of its receipt of the Phase 1 Engineering Fee. The balance of the Engineering Fees shall be paid in three (3) equal installments: (i) after completion and delivery to Licensee of the second phase of engineering deliverables stated in the Engineering Scope of Work; (ii) after completion and delivery to Licensee of the remaining deliverables required for completion of final engineering Licensee’s third-party engineering, procurement, and construction contractor (“EPC Partner”); and (iii), after start-up and commencement of continuous operations of the corresponding Licensed Facility. Licensor shall provide or cause to be provided to Licensee and each EPC Partner necessary and sufficient engineering and related support services to ensure completion of all Engineering Support as defined in the Engineering Scope of Work.