Common use of Development Obligation Clause in Contracts

Development Obligation. In partial consideration for the license granted to Provention under Article 6 of this agreement, Provention (at its own expense) will complete a single P▇▇▇▇ ▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇▇▇▇▇ (▇▇▇) and proof-of-concept (PoC) clinical trial (the “Study”) of a Product in Crohn’s Disease. The Study design will be developed and agreed upon by J▇▇▇▇▇▇ and Provention, according to the plan shown in Schedule 1 (the “Transition Plan”) as well as the Preliminary Clinical Plans attached at Schedule 2. Schedule 1 and Schedule 2 may be modified by mutual written agreement of the Parties. The clinical trial preparations will commence upon receipt of all information and materials supplied under the Transition Plan and the Study shall be designed and implemented to follow the agreed-upon Study design and to conclude within thirty-six (36) months after commencement. Failure to initiate or conclude the Study shall be grounds for J▇▇▇▇▇▇ to terminate this agreement. The Parties may agree to delay completion of the Study, for instance in the event of circumstances that are outside of Provention’s reasonable commercial control (such as a regulatory hold). Notwithstanding the foregoing, shall be entitled to an additional three (3) month period in which to complete the Study in the event the conclusion of the Study is delayed by circumstances beyond its control.