Common use of Unexpected Results Clause in Contracts

Unexpected Results. In the event that Celanese believes in good faith that the agreed split of value added Net Income will make it commercially impracticable to sell Products for use in manufacturing it may notify Symyx. In such a case, Symyx will be open to rediscussing this issue on a case-by-case basis. In addition, if either party determines after five years of payment of royalties on Net Sales of Products by Celanese and its Associates hereunder, that the royalty rate (i) is projected over the life of the royalty payment to exceed 50% of the Added Value, and the rate is above the minimum set out in Section 5.2.1(a), above, or (ii) is projected over the life of the royalty payment to provide less than 12.5% of the Added Value, and the royalty rate is below the maximum set out in Section 5.2.1(a), above, then notice shall be given to the other party, and Celanese and Symyx shall discuss what action, if any, the parties mutually agree to take with regard to such calculation.

Appears in 2 contracts

Sources: Collaboration Agreement (Symyx Technologies Inc), Collaboration Agreement (Symyx Technologies Inc)