Operating Profits or Loss Sharing. 4.1 The Parties agree to share the Operating Profits or Losses with respect to Commercialization activities, Medical Affairs activities, and the activities related to Other Operating Expenses for each DT Co-Co Product (whether such Commercialization activities, Medical Affairs activities, and the activities related to Other Operating Expenses were conducted before or after Regulatory Approval for each DT Co-Co Product) as set forth in Section 7.4 (Co-Co Products Profit and Loss Share) of this Agreement.
4.2 Each Party is entitled to [***] of the Operating Profits or Losses for a given Calendar Quarter. If, taking into account the Net Sales, Cost of Sales, Licensing Income received, and Eligible Medical Affairs Costs, Commercialization Costs, and Other Operating Expenses incurred by the Parties as outlined in the P&L for such DT Co-Co Product, in each case, in such Calendar Quarter, an amount is due from one Party to the other to effect the Profit and Loss Share, then at the time the applicable Consolidated Report is delivered to Moderna, Metagenomi shall make a payment to Moderna for an amount such that Metagenomi shall be bearing [***] of the Operating Profits or Losses for the applicable Calendar Quarter. Metagenomi shall make payment in full to Moderna [***] after the date of an invoice therefor from Moderna. Likewise, if with respect to such Calendar Quarter, a balancing payment is due from Moderna to Metagenomi to effect the Profit and Loss Share, then, [***] after the applicable Consolidated Report is delivered to Metagenomi, Moderna shall pay Metagenomi an amount such that Metagenomi shall receive [***] of the Operating Profits or Losses for the applicable Calendar Quarter.
