Common use of Target Selection; Exclusivity Clause in Contracts

Target Selection; Exclusivity. For any Target that Genentech shall select from the Gene Database, Genentech shall, as soon as reasonably practicable, notify Magainin of Genentech's desire to designate such Target for its own use, exclusive or subject to Third Party rights, as the case may be at the time of designation. Immediately upon designation, Genentech will be deemed to have been granted, at its sole choice, an exclusive fully sublicensable right and license to research, develop, manufacture, make, have made, use, import, export, sell, offer for sale, or have sold Target Compounds and/or Target Products in the Field in the Territory. Notwithstanding the provision of exclusivity in the foregoing sentence, ________________________________________________________________________________ ** Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission. and only with respect to designations by Genentech occurring after the Period of Exclusivity ends, the exclusive license granted above shall be subject to Third Party rights only to the extent existing, or subject to Magainin's rights as provided above in Section 3.1.2 in the event that Magainin is involved in an Internal Development Effort with such Target, as defined in Section 3.2(a), as of the time of designation by Genentech.

Target Selection; Exclusivity. For any Target that Genentech shall select from the Gene Database, Genentech shall, as soon as reasonably practicable, notify Magainin of Genentech's desire to designate such Target for its own use, exclusive or subject to Third Party rights, as the case may be at the time of designation. Immediately upon designation, Genentech will be deemed to have been granted, at its sole choice, an exclusive fully sublicensable right and license to research, develop, manufacture, make, have made, use, import, export, sell, offer for sale, or have sold Target Compounds and/or Target Products in the Field in the Territory. Notwithstanding the provision of exclusivity in the foregoing sentence, ________________________________________________________________________________ -------------------------------------------------------------------------------- ** *Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission. and only with respect to designations by Genentech occurring after the Period of Exclusivity ends, the exclusive license granted above shall be subject to Third Party rights only to the extent existing, or subject to Magainin's rights as provided above in Section 3.1.2 in the event that Magainin is involved in an Internal Development Effort with such Target, as defined in Section 3.2(a), as of the time of designation by Genentech.