C sounds like a great deal for everyone here. Hassan, do you agree? >> Absolutely, deal. >> And Sam? >> I think, we have a deal. >> All right, [LAUGH] great. >> Great. >> I'm pleased. Yeah. >> Yeah, actually though, just before we finished, I just wanted to present one last option I've been thinking about. C, I think is a great option, but I've been thinking about something that might be better for the both parties involved. And I was thinking that we could actually lower the upfront payment, and just raise the bonus. Because I mean if you think about it, you think that there's a 60% chance of FDA approval. You think there's a 10% chance. So changing the deal to lower the upfront price, and raise the bonus really is advantageous to both parties. >> Okay. >> Yeah. No, I understand. And I know about the expected values, but I'm actually a little risk adverse to that. Honestly. I'd rather just stick with C. >> Okay. C, it is. >> All right, C. >> Great. >> Okay. >> I don't normally get involved with these negotiations, and that is how it actually happened when this negotiation took place. >> Yeah. >> But, it's a problem. And- >> Okay. >> If you don't mind, what I wanna do is try this again, after I've had a few words with Sam >> Okay. >> Okay. >> And so just allow us to have a word, in private here. >> Thanks guys. >> You were a 100% right in your arguments, you had it. You nailed it. >> Okay. >> You understood that there should be a lower upfront payment, which is good for and a higher bonus, which is great for your client. >> Right, that's what I thought. I thought it was a- >> The only problem is, you gave up. You let them talk you out of it, and basically even though you were right, you said, okay. >> Yeah. >> And so, what I want you to do is be a little firmer, and say let me give you an example- >> Okay. >> And show you, just how much better off I can make the two of you, okay? >> Okay, so an example being like, raise the bonus to 50. >> Raise the bonus to 50, that's great. And so let's think about that's worth a $30 million to Hassan- >> Right. >> So, that's already a big improvement. Now we've got to make it better for as well. >> So, let's lower the upfront payment to 15. >> 15, so- >> Instead of 29. >> Tight, so a 50 million bonus costs 5, with the upfront payment of 15- >> Right. >> It makes 20, and under C she was gonna be paying 21, so that's a better deal for her, too. >> Right. >> So, you've made your client radically better, >> And I've also- >> You've made a little bit better, which is okay. >> Which is okay, because any [CROSSTALK] >> It's okay, cuz she wasn't [CROSSTALK] >> Better in small increments is also good. >> Now, there is one last thing that we've left out. >> Okay. >> Exactly. So I'll let you figure that part out, on your own. >> Okay. I understand the expected value, but I'm honestly a little too risk adverse for this. I prefer to stick with C. >> Okay. I totally get that, but I just want you to hear me out. All right? >> Okay. >> So let's use some numbers for examples, in the version of the deal that I'm envisioning. Let's say, instead of paying $20 million upfront- >> Uh-huh. >> You pay $15 million. And then instead of the original bonus, you would be getting, let's say, 50. And if you had a $50 million bonus, right now you think there's a 60% chance of FDA approval going through, right? >> Uh-huh. >> That bonus $50 million is worth $30 million to you, right now. So if you get 15 upfront, and $30 million in expected value of a bonus, that's 45 million for you instead of 26. And on your end, if you paid 15 million upfront, that's 5 million less than you would be paying- >> Yeah. >> And the $50 million bonus only costs you 5 million, so instead of paying 21 million, you're paying 20 million. >> Okay. >> So- >> Well [CROSSTALK] >> It costs less for you, and the reward is much greater for you. >> Much greater, yeah. Deal, I love it. >> I don't see, why not. >> Great. I think, we have a new deal. >> Great. [SOUND] >> Excellent. And since there is a new deal, I'd like to also renegotiate my terms. Because as it is I stand to make less money given the lowered upfront payment, so I think that I should also, I think I've earned a portion of the bonus, should it come through? >> I think you're right. >> Great. >> You are right, Sam. Thank you. >> Thank you. It's a pleasure doing business, Hassan.
