Common use of Requiring Diligence Clause in Contracts

Requiring Diligence. The licence granted by this Agreement is conditional upon diligent exploitation of the rights granted to the Licensee, in a manner likely to satisfy the demand for the Products and Services in relation to all reasonable applications, and to adequately serve the Licensee’s customers, throughout the Territory. If NRC suspects a lack of diligence, NRC will give written notice to the Licensee, inviting the Licensee to explain to the satisfaction of NRC, in writing within six (6) months, why the level of exploitation should be considered satisfactory. Diligence will be judged without regard to royalties or minimum royalties paid. NRC reserves the right to find a lack of diligence after the six-months’ notice and after having studied any response made by the Licensee, and this decision shall be conclusive, subject only to the dispute resolution provisions of this Agreement.