Common use of Research and Development Costs Clause in Contracts

Research and Development Costs. Subject to this Paragraph 1 and Paragraph 2 of this Exhibit D-1, upon exercise of the [***] Profit Share Option, the Parties shall share all Research and Development Costs incurred on or after the exercise of the [***] Profit Share Option in connection with the Development of the [***] Product(s), including preclinical, CMC, clinical development, and companion diagnostic development but excluding, for clarity, any Research and Development Costs incurred with respect to a Competing Study or Proprietary Compound Combination Study, as follows: (a) Research and Development Costs shall be borne fifty percent (50%) by MacroGenics and fifty percent (50%) by Zai; (b) [***]; and (c) [***].