Common use of Value Sharing Clause in Contracts

Value Sharing. After first reimbursing each Party's Manufacturing ------------- Cost, next reimbursing each Party's Sales and Marketing Costs and then reimbursing each Party's Ongoing R&D Costs, PEB will pay Illumina [*] of Residual Gross Margin of Collaboration Product sold by PEB, its Affiliates, and distributors ("Illumina Share"), less monies owed to PEB for reimbursement of development funding provided to Illumina under Section 3.7. The balance of Gross Margin will be retained by PEB. If Residual Gross Margin becomes negative in any Quarter, PEB will accrue such losses. These accrued losses will be repaid to PEB from future Illumina Share before any future Residual Gross Margin is paid to Illumina. Illumina Share will be paid to Illumina as set forth in Sections 4.3.1, 4.3.2, 4.3.3, and 13.4.