Cost Sharing. Shared Development Costs and Shared CMC Development Costs incurred during the Profit Share Term for the Profit Share Product by the Parties and their Affiliates shall be borne ​ percent (​) by Janssen and ​ percent (​) by Fate. Neither Shared Development Costs nor Shared CMC Development Costs will be included in Allowable Expenses for purposes of calculating U.S. Pre-Tax Profits and Losses, and any amounts included in Allowable Expenses will not be included in Shared Development Costs or Shared CMC Development Costs.

Shared Development Costs for Combination Products and Combination Regimens that include a product (other than a Profit Share Product) to which Janssen or its Affiliates has any rights, including other drugs, biological products or devices used in such Clinical Trials referred to in [Section 1.20(b)], will be allocated by the JFC between such other product and the Profit Share Product, and only the amounts allocated to the Profit Share Product will be included in the Development Budget and as Shared Development Costs for purposes of Fate’s payment obligations hereunder. Shared Development Costs are not included in Allowable Expenses for purposes of calculating U.S. Pre-Tax Profits and Losses, and are separate from, and do not include, (i) Research Costs, (ii) any payments made pursuant to Section 6.1, 6.2, 6.4 or 6.5 of this Exhibit, (iii) capital expenditures, (iv) Shared CMC Development Costs or (v) costs attributable to general corporate activities, executive management, investor relations, treasury services, business development, corporate government relations, finance, and other overhead.