definiens: means, during the relevant period, actual Internal Expenses and External Expenses ( includingaccruals under GAAP ) incurred by either Party in the conduct of activities under the Strategic Plan for inotersenand IONIS - TTR - LRx, including those listed below : i)Sales and Marketing Expenses;ii)Development Expenses;iii)Regulatory Expenses;iv)Cost of Goods as accounted for upon the sale or other use of a Product;v)Distribution Expenses;vi)Compliance Expenses;vii)all payments made as Third Party Obligations;viii)Losses incurred by a Party or its Affiliates with respect to a Third Party Claim to the extent such Lossesmay be included in Expenses in accordance with Section 11.2 ( Losses as Expenses);ix)expenses incurred in challenging Patents owned by Third Parties that potentially could be infringed by themaking, using, selling, importing, exporting, or other exploitation of a Product;x)expenses incurred in defending, settling, or satisfying any claim brought by a Third Party alleging that theexploitation of a Product infringes such Third Party ’s Patent ( any such claim, a ) ; provided, however, with respect to any Third Party Infringement Claim filed by a Third Party within18 months after the First Commercial Sale of a Product, 89 % of any damages awarded as a final judgmentby a court of competent jurisdiction will be treated as hereunder and the remaining 11 % will bepaid solely by [COMPANY] as provided in Section 11.2;xi)expenses incurred in enforcing Product - Specific Patents and [COMPANY] Core Technology Patents against ThirdParties with respect to Competitive Infringement in accordance with Section 9.3 or enforcing any Akceaintellectual property against any Third Party that is developing, manufacturing, or commercializing aCompeting Product;xii)expenses relating to the filing, prosecution, maintenance, and enforcement of Product - Specific Patents;xiii)expenses of insurance ( including any product liability insurance or accrual for self - insurance ) directlyattributable to the Development or Commercialization of a Product;xiv)real estate expenses related to [COMPANY] ’s Carlsbad, CA office location for so long as such facility is primarilyused by [COMPANY] personnel who are dedicated to Commercialization of the Products ; andxv)equipment depreciation for fixed assets that can be specifically identified as in use to support theDevelopment or Commercialization of Products and is considered a reasonably allocable expense, but notcorporate overhead excluded pursuant to Section 2(c ) of this Schedule 6.4.1