They are paying for everything and still giving you a percentage of the profits. I think it's a decent deal (not only that, but giving you a percentage of the ancilliary profits as well!)
Compare it to working at Marvel and creating a new character. You give up all the right to that character, so if that character is made into 4 ongoing series and a movie, video game and toys, you get your page rate - that's it! If you get fired off the book featuring that character, you get nothing. Code six's deal is way better than that!!