Common use of Cost Effectiveness Clause in Contracts

Cost Effectiveness. The Management Committee will be responsible for reviewing the cost-effectiveness of the supply of each Product and to determine the amount of the manufacturing costs of each Collaborator that will be permitted as an Allowable Expense. [CONFIDENTIAL TREATMENT REQUESTED] In reviewing the cost-effectiveness of the supply of each Product, the Management Committee may compare the Costs of manufacturing a Product at the Chiron Facility and at the Cephalon Facility. If the per unit cost of manufacturing a Product is higher at one of these facilities, the Management Committee shall review the cost-effectiveness of such manufacturing and shall determine the amount of the manufacturing costs that will be permitted as an Allowable Expense; provided, however, that in considering the cost- effectiveness of the manufacturing and the Costs permitted as Allowable Expenses, the Management Committee shall recognize that a reasonable difference in the costs of manufacturing at the Chiron Facility and the Cephalon Facility is to be expected in relation to the costs and benefits of maintaining an Alternative Facility, and is permitted as an Allowable Expense.