Common use of Expenses and Recoveries Clause in Contracts

Expenses and Recoveries. The Party bringing or defending a claim, suit or action under Section 7.4(b) shall be solely responsible for any expenses incurred by such Party as a result of such claim, suit or action. If such enforcing Party recovers monetary damages in such claim, suit or action, such recovery shall be allocated first to the reimbursement of any expenses incurred by the Parties in such litigation (including, for this purpose, a reasonable allocation of expenses of internal counsel), and any remaining amounts shall be allocated as follows: (i) if Jazz is the enforcing or defending Party, the remaining amounts will be retained by Jazz, except that any imputed lost sales upon which such amounts were calculated shall be included in Net Sales subject to the royalty payment by Jazz to Pfenex pursuant to Section 6.5, and (ii) if Pfenex is the enforcing or defending Party, the remaining amounts will be shared equally by Pfenex and by Jazz.