definiens: means an arrangement between the Licensee and one or more third parties which may i nclude a sublicense, where substantially all of the continu ing intended compensation to the Licensee comprise payments cal culated on the basis of value added benefits . In relation to a Value Added Arrangement, during the application of the a pplicable Threshold, initial license fees or similar up - fron t payments and payments made on the basis of achievement of n on - sales related milestones or a singular sales related mil estone are considered payments and amounts that are paid to t he Licensee in connection with the arrangement for the purpose s of 1.01(p)(II ) and are subject of this Agreement resp ecting Net Sales including the provisions of 4.04 . However, d uring the application of the applicable Threshold, payments to the Licensee received in connection with a Value Added Arrangement other than initial license fees or similar up - fron t payments and payments made on the achievement of non - sales related milestones or a singular sales related milestone a nd payments calculated on the basis of value added benefits sh all be included as Other Consideration under this Agreeme nt