Common use of Cost Methodology Clause in Contracts

Cost Methodology. Genentech shall provide to TolerRx its costing and accounting methodology in determining Operating Profits or Losses. TolerRx shall have the right to confirm that such methodology is consistent with GAAP. A.6. START OF OPERATIONS AND EFFECTIVE ACCOUNTING DATE TERMINATION. Operation of the Collaboration (and costs to be charged to the Collaboration) will be deemed to have commenced as of the date of the filing of the first IND by Genentech, only if TolerRx properly exercises the US Profit/Loss Sharing Option and makes the US Cost Sharing Payments in accordance with Section 6.5 and Exhibit A. Costs and expenses incurred prior to such date are not chargeable to the Collaboration, except that costs to be charged to the Collaboration shall include, but are not limited to, FTE Cost(s) and filing fees for filing of IND(s) by Genentech. For reporting and accounting purposes with respect to the Collaboration, the effective termination date of Operating Profit or Loss sharing arrangement under this Exhibit A (with regard to the last detailing year in the United States) will be the earlier of: (A) on a Licensed Product-by-Licensed Product basis, the nearest month end closest to the end of the period set forth in Section 6.5(b) or (B) the nearest calendar quarter end prior to the date that TolerRx first fails to make the applicable balancing payments relating to sharing Operating Profit or Loss on a timely basis in accordance with this Exhibit A and Section 6.5.