Common use of Right of MENTOR to Suspend Payment Clause in Contracts

Right of MENTOR to Suspend Payment. PERIMMUNE shall provide to MENTOR from time to time such information as MENTOR may reasonably request for the purpose of demonstrating that there are sufficient funds remaining in the Project Budget and available to PERIMMUNE to complete the Project Development Activities. MENTOR shall be entitled to suspend payment of costs associated with the Project Development Activities if (a) PERIMMUNE fails to submit the quarterly report called for by Section 2.3 of this Agreement, or (b) any such report evidences that (i) PERIMMUNE is not carrying out the Project Development Activities in accordance with the terms and within the period of time established by the Project Plan, or (ii) in MENTOR's reasonable judgment, there will be insufficient funds available in the Project Budget to attain the Project Objective within the Target Period. Should MENTOR become entitled to suspend payments to PERIMMUNE hereunder, then MENTOR shall not be required to resume payments until PERIMMUNE has taken the corrective action necessary to eliminate the cause of such suspension in payments.