Common use of Exercise of IND-Ready Option Clause in Contracts

Exercise of IND-Ready Option. AstraZeneca shall exercise the IND-Ready Option for an Option Compound, if at all, by giving written notice of exercise to Targacept and paying the Option Exercise Fee for an IND-Ready Option set forth in Section 6.2 at any time during the IND-Ready Option Period; provided that AstraZeneca agrees that, if it determines not to exercise an IND-Ready Option prior to expiration of the IND-Ready Option Period, it shall in good faith provide written notice to Targacept promptly upon such determination and the date on which any such notice is given shall constitute the last day of the IND-Ready Option Period. Upon such exercise by AstraZeneca, such Option Compound shall become an IND-Ready Option Candidate Drug and subject to AstraZeneca’s obligations pursuant to Section 5.5.1(c).