definiens: ] shall mean the [ LJP - frpntorinitialpayments ] actually received by COMPANY from a SUBLICENSEE or THIRD PARTY as payment for the acquired Sublicense Rights [ LJPQnthegrantQFs~¢h$@IiI;l(.ms~ Rights ] . For clarity it is understood that [, ' l .. Jp ~ ErontConsid ~ r ~ ti6n " ] shall specifically exclude consideration received ( 1 ) as payments for the [ occllrrehCe . · •••••• df •.• · .• · al"ly··.·.·Cleiigl()pi'fi ~ nt ; i'~gllli : l1()ry · . · .• · · .·()r commercializatioffmi.lesfOhes ] that are [ a¢hi€3y~(jrsqp$eqllenftd the .up - ftont · •. otjhitialpi : lYhj ~ lit ], ( 2 ) reiJ11b(Jrs ~ rll ~ rltf()rfq ~ q~~t~~~~rqh()r(:j~)j§I()pm§hta.9tlvifi~~ p ~ tf6rrlle ~ p'yQr·()Ii~~hi : lIf.9fGt:)MpANYJ or as [ r$i.mp ~ r$~rn ~ btQf patente*p ~ rl ~ e$ ] incurred S(J ~ IiQ ~ ri$eRights ], ( 3 ) for bona fide [ lq~6 ~ j, ( 4 ) for the [ ~~Ji ~ Qf capital··.·st6clt&f¢oMPANY(9r9tff ~ r~@¢qtiti§§9qbV ~ rti ~ l§i6tQ Page 88 of 1 07 [ ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED . CONFIDENTIAL ¢~pit ~ l$tockqfqPMPANY ] ) . except for [ PremiLJm$q!1l;ti ~ ity ] ( as defined below ) ( 5 ) for grants of rights other than [ $ QI ~ ly$upli~~ri$~ 8Ight$ ], ( 6 ) for amounts paid as [ rQ}@ti ~ sQn$~I~$ ], ( 7 ) for the [ $ \.lppJyofi'i"l ~ t ~ rial$sold, tQ ] such SUBLICENSEE on [ qQthrnerciallyr ~ asQh@l ~ term$ ], and ( 8) amounts for a sale of substantially all of the business or assets of COMPANY ( whether by merger, sale of stock, sale of assets or otherwise ) to which the AGREEMENT pertains, it being understood and agreed that in such event NEKTAR AL shall receive the payment provided for in Section 1.2(b)(i ) or 1.2(b)(ii ) above to the extent applicable . In addition, E'( .. Jp8gri?ht¢Q6$itl ~ r ~ ti9d"j shall be reduced by the amount of [ WilbbdlcliOgtax~$ ] or other amounts that are [ ~~C1l . Jct~<:I from.thei = l.mQUOt ~ ctu ~ llyr ~ c ~ ivetll;,y ] COMPANY ; provided that, to the extent COMPANY [ tealizes < atetluctiorl ] in its [ iOcot"Di:!taxes pYU!ili ~ i6giij.fgt ~ ig6tax.·cf ~ C1itbasgClq6$uchwithnQIClifug.f ~ es ], the amount of such reduction shall then be included in [ Qpi ~ Jofut PQrJ$@er ~ tiQ6 ] for purposes of Sections 1.2(a)(i ) or 1.2(a)(ii ), as applicable