Common use of Consequences of Lack of Diligence Clause in Contracts

Consequences of Lack of Diligence. On a country-by-country basis, or in all countries at the same time, when NRC finds a lack of diligence in accordance with the preceding paragraph, NRC has the right to: (a) convert any exclusivity to non-exclusivity in a country, (b) terminate the licence entirely in respect of a country, or (c) modify the field of use. NRC shall not exercise those rights before six (6) years or the date of entry into Phase 1 clinical trials in humans as formally evidenced by a national regulatory authority having jurisdiction on such matters, but NRC’s demand for justification can be made earlier.