Common use of Initial Development Costs Clause in Contracts

Initial Development Costs. Upon the exercise by Licensor of the Licensor Co-Promotion Option provided for in Section 5.1.1 and within sixty (60) Business Days following the Co-Promotion Exercise Date, Licensor shall make one of the two following payments to Licensee, dependent upon the timing of the Co-Promotion Exercise Date: (a) if the Co-Promotion Exercise Date occurs following the date of the provision to Licensor by Licensee of top-line results from the first Phase II Study of a Licensed Product but prior to the provision to Licensor by Licensee of top-line results from the first Phase III Study of a Licensed Product, Licensor shall make a payment to Licensee in the amount of Thirty-Five Percent (35%) of Development Costs incurred from the Original Execution Date through the Co-Promotion Exercise Date; or (b) if the Co-Promotion Exercise Date occurs following the date of the provision to Licensor by Licensee of top-line results from the first Phase III Study of a Licensed Product, Licensor shall make a payment to Licensee in the amount of Forty Percent (40%) of Development Costs incurred from the Original Execution Date through the Co-Promotion Exercise Date. If Licensor does not make such payment within such time period, the Licensor Co-Promotion Option shall not be effective and Licensor shall no longer have the right to exercise the Licensor Co-Promotion Option.

Initial Development Costs. Upon the exercise by Licensor of the Licensor Co-Promotion Option provided for in Section 5.1.1 and within sixty (60) Business Days following the Co-Promotion Exercise Date, Licensor shall make one of the two following payments to Licensee, dependent upon the timing of the Co-Promotion Exercise Date: : (a) if the Co-Promotion Exercise Date occurs following the date of the provision to Licensor by Licensee of top-line results from the first Phase II Study of a Licensed Product but prior to the provision to Licensor by Licensee of top-line results from the first Phase III Study of a Licensed Product, Licensor shall make a payment to Licensee in the amount of Thirty-Five Percent (35%) of Development Costs incurred from the Original Execution Date through the Co-Promotion Exercise Date; or or (b) if the Co-Promotion Exercise Date occurs following the date of the provision to Licensor by Licensee of top-line results from the first Phase III Study of a Licensed Product, Licensor shall make a payment to Licensee in the amount of Forty Percent (40%) of Development Costs incurred from the Original Execution Date through the Co-Promotion Exercise Date. If Licensor does not make such payment within such time period, the Licensor Co-Promotion Option shall not be effective and Licensor shall no longer have the right to exercise the Licensor Co-Promotion Option.