definiens: means, with respect to the Research Program or Other Funded Research, respectively : ( i ) direct salary expense for [COMPANY] employees conducting such Research Program or Other Funded Research, plus direct employee benefit costs of such personnel ( not including any amount associated with equity incentive plans ), on a percentage - of - time basis, ( ii ) amounts paid to third parties for their performance of the Research Program or Other Funded Activities, ( iii ) administrative expenses, and ( iv ) other direct costs incurred by [COMPANY] in performing the Research Program or Other Funded Research . For purposes of clause ( iii ), shall mean the reasonable and customary costs of supporting and maintaining the Research Program and the Other Funded Research, respectively ( e.g. legal, payroll and accounting expenses ), and for purposes ofclause ( iv ), shall mean the costs of facilities, equipment and materials used by [COMPANY] .directly in the Research Program or Other Funded Activities, respectively, provided that : ( x ) such administrative expenses and other direct costs are allocated to the Research Program and Other Funded Research on a reasonable basis, in the same manner and on a consistent basis for all such · activities and other activities ofVirRx outside the Research Program and the Other Funded Research, and ( y ) in no event shall the sum ofsuch administrative expenses and suFh other direct costs for the Research Program or the Other Funded Research, respectively, exceed ~ irty percent ( 30%Jof the respective costs described in ( i ) for the -2 - Research Program or such Other Funded Research . In addition, in no event shall such administrative expenses and other direct costs include costs of capital, or the costs of capacity not required or not utilized for the conduct ofthe Research Program