CHIRON VARIABLE COST Sample Clauses

CHIRON VARIABLE COST. Chiron Variable Cost shall mean Chiron's cost of direct materials; salaries, wages and benefits of personnel directly engaged in manufacturing the Product; overhead associated with direct production, excluding depreciation, leasehold improvements and equipment leases; and general manufacturing overhead for Quality Assurance/Quality Control only; all as set forth in paragraphs 1, 2, 3 (but excluding 3.a.) and 4.e of Exhibit 10.4 of the RFDS Agreement. Chiron's Variable Cost shall be determined on a calendar year basis by Chiron (based on accounting standards and methods historically employed by Chiron, consistently applied) and reported to Schering. For calendar year 1997 Chiron Variable Cost as calculated above shall be [CONFIDENTIAL TREATMENT REQUESTED] per Vial."