Common use of Rule No Clause in Contracts

Rule No. 3: Until and unless CPG Nutrients or any of its successors has recouped CPG Nutrients' cumulative Pre-Tax Loss Before Sales Royalty (as determined below), the quarterly Sales Royalty payable to Planet, as calculated under Section 6a (ii) (2) and modified as specified under Rule No. 1 and Rule No. 2 above in this Section 6a(ii) (3), will be reduced by one-half. The cumulative Pre-Tax Loss Before Sales Royalty from January 1, 1999, through December 31, 2002, was $6,430,537.00 calculated as set forth on Exhibit E attached to this Agreement. Additional Pre-Tax Losses Before Sales Royalty incurred by Agway (but not any assignee or successor to Agway) after December 31, 2002, determined utilizing the same methodology and basis as set forth on Exhibit "E," shall increase the cumulative Pre-Tax Loss Before Sales Royalty. Pre-