definiens: with respect to a CollaborationProduct shall mean ( a ) the variable costs and fixed costs incurred by a Partyassociated with the manufacture ( inclusive of finishing processes ) of batches ofsuch Collaboration Product or ( b ) if such Collaboration Product is notmanufactured by the Parties, the transfer price for batches of suchCollaboration Product purchased from Third Party manufacturers . For purposes ofthis Section 1.15, shall be deemed to be the cost of labor, rawmaterials, supplies and other resources directly consumed in the manufacture ofbatches of such Collaboration Product, including quality control and qualityassurance . For purposes of this Section 1.16, shall be deemed tobe the cost of facilities, utilities, insurance, facility and equipmentdepreciation and other fixed costs directly related to the manufacture ofbatches of such Collaboration Product, as well as royalties payable to ThirdParties in connection with the manufacture, use or sale of a CollaborationProduct . Fixed costs shall be allocated to such Collaboration Product based uponthe proportion of such costs directly attributable to support of themanufacturing process for such Collaboration Product . If a facility is used tomanufacture Collaboration Products and products for other programs of eitherGenzyme or [COMPANY], fixed costs shall be allocated in proportion to the use of suchfacility for the manufacture of Collaboration Products and products for suchother programs . Fully Absorbed Cost of Goods shall exclude all costs otherwisereimbursed pursuant to this Agreement . In the event that either [COMPANY] or Genzymesubcontracts with the other Party to perform any work on its behalf inconnection with the manufacturing responsibilities assigned to [COMPANY] or [COMPANY], respectively, pursuant to Section 7.3.1 hereof, [COMPANY] and [COMPANY] ( i ) shall eachdirectly charge Kallikrein LLC their respective Fully Absorbed Cost of Goods and(ii ) shall not include any part of the other Party 's Fully Absorbed Cost ofGoods in the amount so charged to Kallikrein LLC . Except as otherwise providedin this Agreement, all cost determinations made hereunder shall be made inaccordance with GAAP