Common use of Allocation of Recoveries Clause in Contracts

Allocation of Recoveries. Any amounts recovered by either Party pursuant to actions under Sections 10.2.1(a)(iii) or (iv) or 10.2.1(b) with respect to any Infringement through the development or sale of a Compound or Product, whether by settlement or judgment, shall be allocated in the following order: (i) first, to reimburse Enanta and Xxxxxx for their reasonable out-of-pocket expenses in making such recovery (which amounts shall be allocated pro rata if insufficient to cover the totality of such expenses); and (ii) then, to Enanta and Xxxxxx in the same proportion as Xxxxxx’x historic profits on Net Sales of the Product or Products affected by the Infringement bears to Xxxxxx’x historic royalties hereunder in respect of such Net Sales, in each case as determined in good faith.