Common use of Option to Proceed Clause in Contracts

Option to Proceed. At any time during Phase II, if it is determined that the product can not be manufactured in the AFI facility due to exposure or safety concerns, or if it is determined that the product can not be manufactured in accordance with the Method of Manufacture (Annex F) provided by Molichem, AFI reserves the right to terminate to contract. Should the contract be terminated, under this clause during Phase 2, only Milestone Payments 1 and 2 will be paid to AFI by Molichem.

Option to Proceed. At any time during Phase III, if it is determined that the product can not be manufactured in the AFI facility due to exposure or safety concerns, or if it is determined that the product can not be manufactured in accordance with the Method of Manufacture (Annex F) provided by Molichem, AFI reserves the right to terminate to contract. Should the contract be terminated, under this clause during Phase 2I, only Milestone Payments Payment 1 and 2 will be paid to AFI by Molichem.