Common use of Exit Options Clause in Contracts

Exit Options. If NN and ZGI mutually agree that the research ------------ and/or clinical development being conducted under the agreement is not likely to lead to a favorable outcome, NN and ZGI shall terminate the agreement and all rights to the ZSS that is the subject of that agreement shall revert to ZGI. If NN believes that the research and/or clinical development being conducted under the agreement is not likely to lead to a favorable outcome, NN may terminate such agreement upon delivery of written notice to ZGI and all rights to the ZSS that is the subject of that agreement shall revert to ZGI. If ZGI believes that the research and/or clinical development being conducted under the agreement is not likely to lead to a favorable outcome, ZGI may terminate such agreement upon delivery of written notice to NN; provided, however that NN shall be entitled to proceed at NN's sole expense and effort to the pre-agreed End Point and then decide whether to enter into a Pre-Negotiated License under the terms of ARTICLE 6 or ARTICLE 7, whichever is then applicable, by timely exercise of NN's Option in accordance with SECTION 4.