Common use of Rule No Clause in Contracts

Rule No. 2: The quarterly Sales Royalty payment to Planet shall not exceed 50% of CPG Nutrients' positive quarterly Pre-Tax Earnings Before Sales Royalty on Products; if the quarterly Sales Royalty payment otherwise due Planet exceeds 50% of CPG Nutrients' positive quarterly Pre-Tax Earnings/(Loss) Before Sales Royalty on Products for that quarter, then, the quarterly Sales Royalty payment due Planet shall be reduced to an amount equal to 50% of CPG Nutrients' positive quarterly Pre-Tax Earnings/(Loss) Before Sales Royalty on Products for that quarter. This Rule No. 2 is personal to Agway and shall not apply to any assignee or successor of Agway except for purposes of calculating the cumulative Pre-Tax Loss Before Sales Royalty carry forward for the benefit of the assignee at the time of assignment of this Agreement.