Common use of Co-Development Option Clause in Contracts

Co-Development Option. If Vitae exercises its Co-Development Option with respect to a Product pursuant to Section 5.4, Vitae shall be entitled to an increased royalty rate for such Product as follows. The applicable royalty rate from the table in Section 9.6.1 shall be increased by **** per 1% of Phase III Study Development costs shared by Vitae. For example, if Vitae shares in ten percent (10%) of the Development costs for the Phase III Study for such Product, then the applicable royalty rate for each tier shall increase by **** (i.e., a **** royalty rate shall become ****). If Vitae co-funds less than ten percent (10%) of the Development costs for the Phase III Study because actual expenses exceeded BI’s budget forecast by more than ten percent (10%), then Vitae shall still be entitled to an upward adjustment in the applicable royalty rate based on its percentage share of actual Development costs for the Phase III Study (in accordance with the formula set forth in this Section 9.6.5(b)). For example, if Vitae ultimately shares in five percent (5%) of the actual Phase III Study Development costs, then the applicable royalty rate for each tier shall increase by **** (i.e., a **** royalty rate shall become ****).

Co-Development Option. If Vitae exercises its Co-Development Option with respect to a Product pursuant to Section 5.4, Vitae shall be entitled to an increased royalty rate for such Product as follows. The applicable royalty rate from the table in Section 9.6.1 shall be increased by **** *per 1% ****of Phase III Study Development costs shared by Vitae. For example, if Vitae shares in ten percent (10%) ****of the Development costs for the Phase III Study for such Product, then the applicable royalty rate for each tier shall increase by **** 0.8% (i.e., a **** royalty rate shall become ****). If Vitae co-funds less than ten percent (10%) ****of the Development costs for the Phase III Study because actual expenses exceeded BI’s budget forecast by more than ten percent (10%)****, then Vitae shall still be entitled to an upward adjustment in the applicable royalty rate based on its percentage share of actual Development costs for the Phase III Study (in accordance with the formula set forth in this Section 9.6.5(b)). For example, if Vitae ultimately shares in five percent (5%) of the actual Phase III Study Development costs, then the applicable royalty rate for each tier shall increase by **** *(i.e., a **** royalty rate shall become ****).