definiens: means the reasonable out - of- pocket costs and internal costs incurred by a Party or its Affiliates after the Effective Date that are consistent with the respective Development acti vities of such Party that are directly attributable or reasonably allocable to the Development of a Licensed Product ( including Manufacturing Costs incurred in connecti on with such pre- clinical or clinical Development activities, but excluding Manu facturing Costs incurred in connection with Commercial Manufacture, even if con ducted prior to Regulatory Approval of such Licensed Product ), in accordance w ith, as applicable, ( a ) the Collaboration Plan and Collaboration Budget applica ble to the WRN Program, ( b ) the Development Plan and Development Budget applicable to the WRN Compound and WRN Product, and ( c ) solely if the Option Closing D ate occurs ( i ) the Development Plan and Development Budget applicable to the MAT2A Compound and MAT2A Product and ( ii ) all Interim MAT2A Activities incur red after the Option Closing Date, including in eac h case of the foregoing all Third Party invoiced co sts and expenses incurred for activities specified in the applicable Collaboration Plan ( and corresponding Collaboration Budget ) or the Developm ent Plan ( and corresponding Development Budget ) . For purposes of this definitio n ( A ) out - of- pocket costs means the actual amounts paid by a Party or its Affiliate to a Third Party for specific external Development activities conducted for the relevant L icensed Compound or Licensed Product, including all filing fees required for and other costs associated with, any Regulatory Filings and all applicable Patent Costs pursuant to Section 10.2.3 and ( B ) internal costs means the applicable FTE Rate multip lied by the number of FTE hours utilized in the relevant period on ac tivities directly relating to Development in accordance with the applicable Collaboration Plan o r Development Plan . For clarity Development Costs excludes all costs incurred in co nnection with Commercialization of Licensed Products