Common use of Net Consideration Clause in Contracts

Net Consideration. Prior to the Managing Party distributing and paying to the Other Parties their Allocable Percentages of Net Consideration, the Manag­ing Party shall deduct from the License Consideration and retain for itself or reimburse the Other Parties the following amounts: first, the Patent Expenses (which shall be distributed to the Parties in proportion to the prior Patent Expenses actually paid by each Party, except in the circumstances described in Section 3.7(c)), second, the Licensing Expenses (not to exceed the cap set forth in Section 5.3 of the IIA, except to the extent that a Licensee is explicitly reimbursing those expenses or paying a license documentation fee or similar fee for that purpose), and third, the Management Fee, if any.