Common use of Target Selection Clause in Contracts

Target Selection. During the first [ * ] of the Screening Term, Sankyo may notify Telik in writing of Sankyo Targets against which Sankyo wishes to screen compounds provided by Telik ("Proposed Targets"). Sankyo's notification must provide the molecular identity of the Proposed Targets and such other information as Telik may reasonably request to permit Telik to confirm that none of such Proposed Targets is identical to, overlapping or otherwise in conflict with (i) targets included in, or subject to any then- existing restriction resulting from, any research collaboration between Telik and a third party or (ii) targets that Telik was already actively pursuing prior to receipt of Sankyo's notice (collectively, "Reserved Targets"). Telik shall notify Sankyo in writing whether or not each Proposed Target is a Reserved Target. If a Proposed Target is not a Reserved Target, then the Proposed Target will be deemed a "Selected Target" upon dispatch of Telik's notification. Telik shall list all Proposed Targets in the Appendix to this Agreement and shall update such Appendix, as necessary, to indicate whether a Proposed Target becomes a Selected Target and to delete all Reserved Targets. Sankyo may designate no more than ten (10) Selected Targets.