Common use of Formation of Legal Entity Clause in Contracts

Formation of Legal Entity. In the event either Party establishes that the formation of a partnership or other legal entity for which no entity-level tax is imposed, co-owned by the Parties to further the Development, manufacture and Commercialization of the Collaboration Products would be beneficial for legal, tax or other reasons, and would not cause the other Party any significant financial detriment, the other Party covenants that it shall cooperate and take all reasonable steps necessary to form such entity.

Formation of Legal Entity. In the event either Party establishes determines that the formation of a partnership or other legal entity for which no entity-level tax is imposed, co-owned by the Parties to further the Development, manufacture and Commercialization of the Collaboration Products would be beneficial for legal, tax or other reasons, and would not cause the other Party any significant financial detriment, the other Party covenants that it shall cooperate and take all reasonable steps necessary to form such entity.