Common use of Screening Phase Clause in Contracts

Screening Phase. 9.1.1 If both parties decide to jointly sell their interests with respect to a compound or Candidate which is still in the Screening Phase, the parties agree that the net proceeds from any sale shall be divided equally without consideration of Third Party Obligations. A party shall pay from its share of the net proceeds all Third Party Obligations such party may owe. In arriving at net proceeds, all reasonable out-of-pocket transaction costs (e.g. attorney fees) shall be deducted from gross proceeds and paid directly to the person or entity owed or reimbursed to the party who has paid the person or entity for such costs. 9.1.2 If the parties jointly license their interests in any Candidates or partially sequenced compounds during the Screening Phase, the parties agree that any revenues received with respect to such licensing shall be equally shared as described in Paragraph 9.1.1 including, without limitation, any initial payment, milestone fees or royalties.