Accounting for and Payment of External Costs and Internal Supplies and Materials Sample Clauses

Accounting for and Payment of External Costs and Internal Supplies and Materials. (a) Each Party will budget and account for external costs (i.e. the costs of Collaboration activities that are not Internal Activities) and the costs and expenses associated with Extraordinary, Collaboration-Specific Laboratory Supplies, Materials and Equipment necessary to conduct Internal Activities (but excluding upfront, reservation or prepaid CRO costs and Manufacturing Costs), that are subject to Sharing on an accrual basis as those expenses are accrued pursuant to GAAP or GAAP Counterpart, and not on a cash basis, except as expressly set forth in Sections 1.3(b) and 1.3(c) of the Financial Appendix. (b) With respect to Development Expenses payable to clinical research organizations (“CROs”) and Manufacturing Costs payable to Third Parties for Development or Commercialization supplies of Collaboration Compound or Collaboration Product that are subject to Sharing and for which a single invoice requires a single payment to a Third Party equal to or greater than [*], these external costs shall not await reconciliation at the end of the quarter or year, but rather a Party paying such an invoiced or contractual amount equal to or greater than [*] in a single payment to a non-employee Third Party may immediately upon paying the Third Party, invoice the other Party for such other Party’s Share of the amount paid to the Third Party, to the extent otherwise subject to Sharing hereunder and within the budgetary limitations set forth in Sections 7.2(c) and 7.3 of the Agreement (the “Limits”), and the Party receiving any such invoice shall pay its invoiced Share within [*] days after receipt of the invoice by the receiving Party. (c) With respect to prepaid Development Expenses payable to CROs and prepaid Manufacturing Costs payable to Third Parties for Development or Commercialization [*] Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934, as amended. supplies of Collaboration Compound or Collaboration Product (“Prepaid Expenses”) that are subject to Sharing (and which are due in single payments of less than [*], such that they are not eligible to be billed in the middle of an accounting period under subsection (b)), to the extent set forth in the remainder of this sentence these external costs shall not be accounted for on an accrual basis, but rather a Party paying such a Prepaid Expe...