Common use of Commercial Option Exercise Clause in Contracts

Commercial Option Exercise. Baxalta may begin the process for exercising the Commercial Option by providing written notice to Precision during the Commercial Option Exercise Period indicating its intent to exercise its Commercial Option with respect to the applicable Licensed Product Candidate (the “Commercial Option Exercise Notice”). Upon provision of the Commercial Option Exercise Notice with respect to a particular Licensed Product Candidate, (a) Precision will promptly initiate or continue, as applicable (at Precision’s sole cost and expense) manufacturing and quality testing of a Phase II Ready Batch of such Licensed Product Candidate and (b) if Antitrust Clearance is required, the Parties will comply with their obligations under Section 17.17. The Commercial Option with respect to a Licensed Product Candidate shall be deemed exercised on the Commercial Option Exercise Date, and such Licensed Product Candidate shall thereafter be a Licensed Product. Notwithstanding anything to the contrary set forth in this Agreement, if Antitrust Clearance is required for the exercise of any Commercial Option and is not obtained within [***] following delivery of the Commercial Option Exercise Notice, the Commercial Option Exercise Period for the applicable Licensed Product Candidate will be deemed to have occurred without issuance of a Commercial Option Exercise Notice, and shall be treated in accordance with Section 4.1.4. [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.