Complex sentence: When a foul is made, the non-fouling player will receive penalty points equal to the value of the ball "on", or the value of any of the "foul" balls, or 4 points, whichever is highest.
Split into simpler sentences: When a foul is made, the other player will receive penalty points. The number of penalty points is the value of the ball "on", or any of the "foul" balls, whichever is highest.