Inventory Monitoring. Licensee shall regularly monitor the purchases of Licensed Product by its distributors and sublicensees and data relating to the inventory levels and sales of Licensed Product by such distributors and sublicensees, and Licensee shall cease sales to any such distributor or sublicensee that Licensee reasonably believes, based on such data or other factors, is diverting Licensed Product for sale outside the Territory. Licensee shall notify Somaxon in writing if it becomes aware of any diversion of Licensed Product for sale outside the Territory so that the Parties may discuss actions to be taken in connection with such diversion, including without limitation, the cessation of sales contemplated under this Section 4.4.
Appears in 2 contracts
Sources: License Agreement (Somaxon Pharmaceuticals, Inc.), License Agreement (Somaxon Pharmaceuticals, Inc.)