RESYNTHESIS COMPOUNDS Clause Samples

RESYNTHESIS COMPOUNDS. In partial consideration of the delivery of up to fifteen (15) resynthesis compounds (as described in Section 3.5.) per calendar quarter from the Effective Date through March 31, 2003, Sankyo agrees to pay ArQule a delivery fee in the amount of $300,000 in eight (8) equal installments of $37,500, payable within two (2) weeks after the Effective Date and thereafter on the first day of each calendar quarter until the last payment is made on January 1, 2003. If Sankyo does not receive its full allocation of fifteen (15) resynthesis compounds in a given calendar quarter, ArQule shall have no obligation to provide Sankyo with the shortfall in any subsequent calendar quarter. If Sankyo receives more than fifteen (15) resynthesis compounds in a given calendar quarter, as requested by Sankyo, Sankyo agrees to pay ArQule $2,500 for each such additional resynthesis compound within thirty (30) days of receipt. In addition, if ArQule produces more than 5 mg of a resynthesis compound, as directed by the Research Committee and approved by Sankyo, Sankyo will pay ArQule an additional fee that will be determined by the Steering Committee on a case-by-case basis.