Common use of Rule No Clause in Contracts

Rule No. 1: Agway shall determine whether Agway's CPG Nutrients business selling Products ("CPG Nutrients") has positive quarterly Pre-Tax Earnings Before Sales Royalty on Products for the fiscal quarter being measured; if CPG Nutrients has positive quarterly Pre-Tax Earnings Before Sales Royalty on Products for said quarter, the Sales Royalty payment due Planet shall be calculated as set forth above; however, if CPG Nutrients did not have positive quarterly Pre-Tax Earnings Before Sales Royalty on Products for said quarter, no Sales Royalty shall be due Planet for said quarter. This Rule No. 1 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.