Common use of Development Exclusivity Clause in Contracts

Development Exclusivity. For so long as a Joint Development Plan is in place, neither Party shall, except in connection with the Joint Development Activities, undertake any activities itself, or undertake any joint development activities in collaboration with or on behalf of any third party, in connection with the Joint Development Activity Field applicable to such Joint Development Plan. Notwithstanding the foregoing, ERS is expressly permitted to continue to engage in existing contractual arrangements, and to enter into new contractual arrangements, related to research, development, testing, and analysis regarding existing and future ERS materials, technologies, and products with parties that are not commercializing such materials, technologies and products, including third party consultants, laboratories, universities, research centers, research and development contractors, and other contractors; provided, however, that (a) ERS shall have the exclusive right under any such contractual arrangement to use and license any Intellectual Property developed under such contractual arrangement for commercial purposes in the Field, and (b) ERS has the right under any such contractual arrangement to oversee or control the disclosure and commercial use of such Intellectual Property in a manner that protects the Parties’ interests in such Intellectual Property that might have commercial applications in the Field. ERS shall, for so long as such a Joint Development Plan is in effect but subject to any confidentiality obligations ERS has to third parties, provide Stepan a monthly update on Products or Derivatives arising from its own development efforts, or those efforts resulting from such contractual arrangements, that are relevant to the Joint Development Activity Field(s) in effect at the time of such update.