definiens: – shall mean consideration, whether monetary or otherwise, received ( forthe removal of doubt, whether received before or after the FirstCommercial Sale in any country ) by the Company for or from the grant ofSublicences and/or pursuant thereto, or in connection with the grant ofan option for a Sublicence, except for : Ref . : 05 - 2595 - 04 - 4No . : 60604 - 001L/88017/4000/407949/1 - 8 - ( i)amounts received by the Company which constitute royaltiesbased on sales of the Products by Sublicensees in respect of whichthe Company has paid royalties to Yeda, or owes such royalties, under the terms of this Agreement ; ( ii)gross receipts for commercial sales of Products in respect of whichthe Company has paid royalties to Yeda ; ( iii)amounts received from a Sublicensee and actually expended by theCompany in respect of future research and development activitiesto be performed at the Company for or on behalf of suchSublicensee with regard to the Product or Products being thesubject - matter of the Sublicence, provided that ; ( a)such research and development activities are performedpursuant to a defined research and development program andbudget agreed between the Company and such Sublicensee, a copy of which is furnished to Yeda ; and ( b)the Company submits to Yeda a written report, audited bythe Company ’s independent auditor, setting out the time andmaterials utilised, and overhead costs and other expensesactually incurred by the Company in the conduct of the saidresearch and development activities, which demonstratesthat reasonable amounts have actually been expended by theCompany in the conduct of such research and developmentactivities, Ref . : 05 - 2595 - 04 - 4No . : 60604 - 001L/88017/4000/407949/1 - 9 - it being agreed, for the removal of doubt, that any amountsreceived by the Company as aforesaid, but not expended as setout above, shall be deemed to be Sublicensing Receipts ; and ( iv)equity investments in the Company at current market rates ; 1.2.13