Common use of Revenue Sharing Clause in Contracts

Revenue Sharing. (a) No later than thirty (30) days after each calendar quarter in which there were positive aggregate Net Sales arising from the sale of Fibrocell Products in the Field and Territory, Fibrocell shall pay to Intrexon a royalty based upon the aggregate net sales for all Fibrocell Products for the preceding calendar quarter as follows: a seven percent (7%) royalty on the first twenty-five million dollars ($25M) of aggregate Net Sales during that quarter, and a fourteen percent (14%) royalty on the portion of aggregate Net Sales during that quarter that exceed twenty-five million dollars ($25M). Commencing with the Effective Date, in the event that there are negative Net Sales for a particular Fibrocell Product in any calendar quarter, neither Fibrocell nor Intrexon shall owe any payments hereunder with respect to such Fibrocell Product. Any negative Net Sales that results from Excess Product Liability Costs may be carried forward to future quarters and offset against positive Net Sales in such future quarters for the same Fibrocell Product. Except as set forth in the preceding sentence, Fibrocell shall not be permitted to carry forward any negative Net Sales to subsequent quarters.