Right of Reinstatement. In the event Zosano terminates this Agreement pursuant to Section 9.2 and subsequently wishes to restart Development activities of a Daily Product, then it shall offer Lilly the right to reinstate the terms of this Agreement by providing written notice to Lilly (the “Reinstatement Offer”). If Lilly accepts the Reinstatement Offer by providing written notice of acceptance to Zosano within thirty (30) days after Lilly’s receipt of the Reinstatement Offer, then the terms of this Agreement shall be reinstated automatically. If Lilly does not accept the Reinstatement Offer but instead proposes to Zosano in writing within thirty (30) days after Lilly’s receipt of the Reinstatement Offer new financial terms for the Daily Product, and Zosano accepts such new financial terms, then this Agreement will be reinstated with such new financial terms. If Zosano does not accept Lilly’s proposed new financial terms, then Zosano shall not enter into an agreement to Develop, Manufacture and Commercialize a Daily Product with any Third Party prior to August 19, 2019. If Lilly refuses the Reinstatement Offer or fails to propose to Zosano in writing within thirty (30) days after Lilly’s receipt of the Reinstatement Offer new financial terms for the Daily Product, then this Agreement shall remain terminated, Lilly shall have no further rights of reinstatement hereunder and Zosano shall not Commercialize a Daily Product prior to August 19, 2019.
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Sources: Collaboration, Development and License Agreement (Zosano Pharma Corp), Collaboration, Development and License Agreement (Zosano Pharma Corp)