definiens: shall mean the amount [COMPANY] will pay Genelabs over a consecutive twelve ( 12 ) month period during the Research Program Tenn to support one ( 1 ) Genelabs FTE in the Research Program . The FTE Rate will be U.S. [ Three Hundred Thousand ] Dollars ( USD $ [ 300,000.00 ] ) per FTE per year through the third calendar quarter of 2006 . The FTE Rate for the ensuing one - year period shall be U.S. [ Three Hundred Thirty Thousand ] Dollars ( USD $ [ 330,000.00 ] ) per FTE per year and shall increase annually thereafter by [ five percent ( 5 % ) per year ] . The FTE Rate shall include all personnel ( including nonnal vacations, sick days and holidays and employee benefits ), equipment, reagents and all other expenses including support staff and overhead for or associated with an FTE, provided that payment by [COMPANY] of the FTE Rate shall not be deemed to give [COMPANY] any ownership interest in any equipment, reagents or other property purchased by Genelabs using such research funding