Common use of Technology Fee Clause in Contracts

Technology Fee. In partial consideration for the license granted by BioChem and the BioChem Affiliates to CliniChem hereunder, CliniChem shall pay in arrears the following Technology Fee payments: (a) five hundred thousand dollars ($500,000) thirty (30) days after the Distribution Date and five hundred thousand dollars ($500,000) on the same day of each of the next eleven (11) months payable as follows: to BioChem three hundred fifty-eight thousand dollars ($358,000), to Tanaud Ireland Inc. forty-two thousand dollars ($42,000), and to Tanaud International B.V. one hundred thousand dollars ($100,000); (b) four hundred eight thousand three hundred thirty-three dollars ($408,333) per month on the same day of each of the next twelve (12) months payable as follows: to BioChem two hundred ninety-two thousand, three hundred thirty-three dollars ($292,333); to Tanaud Ireland Inc. thirty-four thousand dollars ($34,000), and to Tanaud International B.V. eighty-two thousand dollars ($82,000); (c) three hundred thousand dollars ($300,000) per month on the same day of each of the next twelve (12) months payable as follows: to BioChem two hundred fifteen thousand dollars ($215,000), to Tanaud Ireland Inc. twenty-five thousand dollars ($25,000), and to Tanaud International B.V. sixty thousand dollars ($60,000); and provided, however, that CliniChem shall not be obligated to make such payments beginning with any month following the date on which the sum of the number of CliniChem Products under development by CliniChem pursuant to the Research and Development Agreement plus the number of CliniChem Products that have been acquired by BioChem or a BioChem Affiliate pursuant to BioChem's exercise of the Product Option is less than two (2). All payments to be made by CliniChem to Tanaud International B.V. and Tanaud Ireland Inc. shall be made net of any Canadian withholding tax applicable to such payments.