Research Budgets Clause Samples
The Research Budgets clause defines how financial resources are allocated and managed for research activities under an agreement. It typically outlines the process for creating, approving, and modifying budgets, specifying what expenses are covered and any limitations or reporting requirements. This clause ensures that both parties have a clear understanding of funding expectations and controls, helping to prevent disputes over costs and maintain transparency throughout the research project.
Research Budgets. For each Research Program, Morphic or its authorized Third Party designees will perform the Morphic Research Activities for such Research Program in accordance with a detailed written budget for such activities, which will include the number of FTEs to be dedicated by Morphic to performing the Morphic Research Activities under such Research Plan, as well as any direct out-of-pocket expenses expected to be incurred in connection with the performance of the Morphic Research Activities (each such budget for a Research Plan, as may be amended pursuant to Section 2.2.3 (Updates to Research Plans and Research Budgets), a “Research Budget”). All internal personnel and resources of Morphic under each Research Budget will be expressed in terms of FTEs and FTE Costs plus any direct Out-of-Pocket Costs to be incurred (e.g., from the use of contract research organizations or for the acquisition of materials that are specifically acquired for use in the applicable Research Program, including special reagents) in connection with the performance of the Morphic Research Activities as outlined in the applicable Research Plan. Morphic’s internal costs for Morphic personnel included in each Research Budget will be calculated and expressed using the relevant FTE Rates.
Research Budgets. With respect to any Joint Research Costs or Research Costs that are reimbursed as LGC Costs or Cue Costs in accordance with Section 7.3, the actual Research Costs for any activity performed in any Calendar Year in accordance with a Research Plan shall not exceed [***] of the budgeted amount for such activity in a Calendar Year as set forth in the applicable Research Budget for such Plan. If a Party’s expenses exceed [***] of the budgeted amount of Joint Research Costs for such activity, such Party shall be responsible for completing the activities set forth in the applicable Research Plan at its own expense.