Common use of Phase II Drug Collaborations Clause in Contracts

Phase II Drug Collaborations. Subject to the licenses granted under Article 6, notwithstanding Section 6.6 and subject to the provisions of this Section 2.7: Sunesis shall not be prohibited from collaborating with a Third Party on the development and commercialization of chemical compounds in-licensed from or controlled by such Third Party against the Collaboration Target; provided that (x) Sunesis has not exercised its Co-Funding Option with respect to the Collaboration Target, and (y) that such compounds are in Phase II clinical trials or later stage of development or commercialization at the time of initiation of such collaboration (each, a “Phase II Drug Collaboration”). As of the Effective Date, except for those compounds listed on Exhibit 2.7.1, Sunesis is not a party to a Phase II Drug Collaboration. Sunesis shall notify Biogen Idec in writing upon entering into a Phase II Drug Collaboration. Nothing in this paragraph is intended as the grant of a license by either Party to the other Party.