Common use of Compound Supply Clause in Contracts

Compound Supply. As soon as a Compound has been designated under the procedures of Section 3.2.3 above, the RMC shall convene to decide the most efficient route to produce sufficient quantities of such Compound, not to exceed [ * ] of such Compound, to give IBP the opportunity to perform the minimum studies required to determine IBP’s interest in obtaining a License to a Compound Set associated with such Compound. If the RMC determines that the most efficient route to make such Compound is via [ * ], the RMC shall so notify IBP in writing, and IBP shall be responsible for producing sufficient quantities of the Compound as reasonably specified by the RMC. However, if the RMC determines that the most efficient route to make such Compound is via [ * ], the RMC shall so notify Diversa in writing, and Diversa shall be responsible for producing and delivering to IBP sufficient quantities of the Compound via [ * ] as reasonably specified by the RMC. IBP shall have a maximum of [ * ] from manufacture or receipt (as applicable) of such applicable quantities of the Compound to carry out such studies. If, within such [ * ] period, IBP determines that such Compound is of interest to IBP, IBP shall promptly notify Diversa in writing as to IBP’s desire to obtain a License to such Compound Set associated with such Compound. Subject to the terms and conditions of this Agreement, upon such written notification, if such Compound is not an Excluded Compound at such time, Diversa shall be deemed to grant a License to the Compound Set with respect to such Compound and Products based thereon as provided in Section 4.1. If Diversa is not so notified within such [ * ] period, however, IBP shall thereafter have no right to License such Compound or the Compound Set with respect to such Compound.

Compound Supply. As soon as a Compound has been designated under the procedures of Section 3.2.3 above, the RMC shall convene to decide the most efficient route to produce sufficient quantities of such Compound, not to exceed [ * [***] of such Compound, to give IBP the opportunity to perform the minimum studies required to determine IBP’s 's interest in obtaining a License to a Compound Set associated with such Compound. If the RMC determines that the most efficient route to make such Compound is via [ * [***], the RMC shall so notify IBP in writing, and IBP shall be responsible for producing sufficient quantities of the Compound as reasonably specified by the RMC. However, if the RMC determines that the most efficient route to make such Compound is via [ * [***], the RMC shall so notify Diversa in writing, and Diversa shall be responsible for producing and delivering to IBP sufficient quantities of the Compound via [ * [***] as reasonably specified by the RMC. IBP shall have a maximum of [ * [***] from manufacture or receipt (as applicable) of such applicable quantities of the Compound to carry out such studies. If, within such [ * [***] period, IBP determines that such Compound is of interest to IBP, IBP shall promptly notify Diversa in writing as to IBP’s 's desire to obtain a License to such Compound Set associated with such Compound. Subject to the terms and conditions of this Agreement, upon such written notification, if such Compound is not an Excluded Compound at such time, Diversa shall be deemed to grant a License to the Compound Set with respect to such Compound and Products based thereon as provided in Section 4.1. If Diversa is not so notified within such [ * [***] period, however, IBP shall thereafter have no right to License such Compound or the Compound Set with respect to such Compound.