Common use of Payment of Shared Costs Clause in Contracts

Payment of Shared Costs. The parties will contribute to shared costs as they are incurred. After a Commercialization Event occurs with respect to a Product and Net Proceeds are being generated: (i) The Steering Committee will determine a percentage of the Net Proceeds that will be directed into a sinking fund out of which shared costs and any liabilities incurred will be paid, and (ii) to the extent that the sinking fund contains insufficient funds to pay any shared costs incurred, MSS will have the option to require the University to contribute its share of the balance directly to MSS, or to pay such shared costs directly and to offset the University's share of such costs against the share of any Net Proceeds or development funds to which the University is entitled hereunder.