Common use of Premise Clause in Contracts

Premise. The premise for the Agreement is an overall reduction in costs to produce fuel ethanol using corn feedstock which will come via savings in exogenous enzyme purchases, higher yields of ethanol, and improved co-products, all achieved via the use of the Mascoma CBP Corn Technology. The Agreement will have two distinct phases (the “Demonstration Phase” and the “Commercialization Phase”). Each Party acknowledges and agrees that the Collaboration will only proceed from one phase to the next phase upon the mutual agreement of the Parties.