Common use of Licensed Compounds Clause in Contracts

Licensed Compounds. Each Active Compound which meets the criteria set forth in Exhibit 2.3 to the satisfaction of the Research Committee may be recommended by the Research Committee to Dainippon which shall have the right to select from those so recommended the Active Compound for the GLP Toxicology Study and further development and commercialization under the License Agreement. Such selection shall be made by written notice to RiboGene. Each Active Compound so selected shall be designated a Licensed Compound and shall be covered by the terms of the License Agreement.