Common use of Collaboration Target Exclusivity Clause in Contracts

Collaboration Target Exclusivity. Subject to Section 2.7 and Section 3.5 below, during the Exclusivity Period Sunesis shall collaborate exclusively with Biogen Idec with respect to each Collaboration Target and with respect to Target Selective Compounds. Subject to Section 2.7, during the Exclusivity Period Biogen Idec shall collaborate exclusively with Sunesis with respect to each Collaboration Target and with respect to Target Selective Compounds. Notwithstanding the foregoing, neither Party shall be deemed in breach of this Section 2.4 if it engages in activities, or licenses a Third Party, with respect to a compound that does not specifically and directly modulate a Collaboration Target, to the knowledge of such Party at the time such Party engages in such activities or granted such license (or if earlier, at the time such Party first became obligated to engage in such activities or grant such license). It is understood and acknowledged, however, that nothing in the preceding sentence shall be deemed to limit or modify the obligations set forth in Section 6.6 hereof or the licenses granted in Article 6. In addition, it is understood and acknowledged that nothing in this Section 2.4 shall restrict either Party from research, development or commercialization activities with protein or peptide therapeutics directed to Collaboration Targets, either through an internal program or a bona fide collaboration with a Third Party. The term peptide therapeutics in the preceding sentence shall mean peptides having a molecular weight greater than 1,000 daltons.