Common use of Failure to Obtain Approval Clause in Contracts

Failure to Obtain Approval. Licensee shall not have the right to manufacture, offer for sale, sell, distribute, ship, or use any proposed Licensed Article or item of Advertising Material unless it has complied with all of the approval procedures and requirements set forth in this Section 7 and has obtained Licensor's prior written approval. Failure by Licensee to comply with the provisions of this Section 7 shall constitute a material breach of this License Agreement and shall be grounds for termination of the Licensed Rights by Licensor unless Licensee cures such breach within thirty (30) days thereafter by destroying all inventories of such unapproved Licensed Articles in its possession and recalling from its customers and destroying all such unapproved Licensed Articles that have previously been shipped. If Licensor elects to terminate the Licensed Rights for Licensee's failure to obtain approval, then Licensee may not dispose of its inventory of such unapproved Licensed Articles pursuant to Section 15.