Common use of Optional Development Clause in Contracts

Optional Development. In the event that INFLARX is being granted any Regulatory Approval for Commercialization of a Product containing IFX-1 or IFX-2 anywhere in the INFLARX Territory for an Indication and if the same or a substantially similar Indication at that time is not pursued by BDB inside the BDB Territory, as evidenced by any initiated (FPFV) Phase II Clinical Trial for cPoC sponsored by BDB, with respect to BDB-1 or BDB-2, then INFLARX — upon INFLARX request in writing — shall be granted the right to pursue Regulatory Approval for and to Exploit and Commercialize such Product containing IFX-1 and or IFX-2 in that respective Indication inside the BDB Territory. In such event, BDB shall be entitled to royalty payments as set forth in Section ‎7.2. For the purpose of this provision, it is understood that a “substantially similar Indication” is concerned if there is an overlap in targeted sub-groups of patients in the Indications pursued in development of the Parties.