definiens: with respect to units of a Product shall mean the direct and indirect costs ( but excluding general and administrative expenses ) associated with the manufacture and/or preparation of such Product, calculated in accordance with generally accepted accounting principles in the United States . With respect to units or portions acquired from a non·Affiliate vendor, Production Costs shall mean the amounts paid to the vendor plus costs associated with acquisition from such vendor, in each case including without limitation freight, insurance, shipping, packaging and 0t?er similar costs associated with acquiring such portions or units for delivery F.O.B. to the Developmg VWW::ODMA\PCIX > CS\SQL2\44 I 155\1 -4 · CONfiDlLNTrAl Party 's destination point . Prior to the time at which Ciba andlor [COMPANY] become obligated to reimbW'Se [COMPANY] for any Production Costs, the parties shall mutually agree upon the method of calculating such Production Costs