Common use of New Target Rejection/Approval Clause in Contracts

New Target Rejection/Approval. Within 15 days of receipt of the Request Notice, Isis will give OncoGenex written notice describing (a) if any of the criteria set forth below in clauses (i) and (ii) applied to such Proposed Collaboration Target at the time of Isis’ receipt of the Request Notice and (b) the nature of any financial or other obligations to a Third Party associated with the Proposed Collaboration Target (“Encumbrances”). If, at such time, the Proposed Collaboration Target is (i) subject to Isis’ own Active Program or (ii) encumbered by a contractual obligation between Isis and a Third Party that would preclude Isis from granting a license under Section 3.1.1. with respect to the Proposed Collaboration Target, then the Proposed Collaboration Target will be rejected and will not become a Collaboration Gene Target. If the Proposed Collaboration Target is not rejected under this subsection 2.3.2, the Proposed Collaboration Target will become a Collaboration Gene Target; provided, however, that if the Proposed Collaboration Gene Target has any Encumbrances, before such Proposed Gene Target becomes a Collaboration Gene Target, OncoGenex must agree in writing to assume all applicable Encumbrances for such Proposed Gene Target. At the time a particular gene target becomes a Collaboration Gene Target, the Parties will mutually agree whether such Collaboration Gene Target is a ▇▇▇▇▇ ▇, ▇▇▇▇▇ ▇ ▇▇ ▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇ Gene Target.