definiens: or shall mean, subjec t to Section 5.1 below, the expenditure, including Grant Guarantees, by or on behalf of WPD or any of its a ffiliates of at least : ( i ) U.S. $ 2,500,000 during the first f our ( 4 ) years ( the ) immediate ly following the Effective Date of this Agreement on the researc h, development and commercialization of Sublicensed Products in the Sublicensed Territories ; and ( ii ) U .S. $ 1,000,000 annually for each of the four ( 4 ) ye ars after the Initial Hurdle Date on the research and development of Sublicensed Products in the Sublicensed Territo ries . The minimum required total CRDE or is $ 6.5 m illion . WPD receives financial support and in - kind contributions from third parties including grants f rom governmental and non - governmental agencies, in connection with WPD ’s research and development effo rts . MBI acknowledges and agrees that the value of any grants or other financial support or in - kind contri butions expended by WPD or any of its affiliates on the research and development of Sublicensed Products as approved by the JDC shall be considered expenses b y or on behalf of WPD or its affiliate as applicable, in calculating the Commercially Reasonable Developmen t Efforts, provided such financial support and in - kin d contributions are approved by the JDC as constitu ting Commercially Reasonable Development Efforts . In the event that WPD fails to use Commercially Reasonabl e Development Efforts to develop Sublicensed Product, MBI shall have the right to terminate this Agreeme nt pursuant to the terms specified in Section 15.2(c ) below