definiens: means the cost ( calculated on a per - Selling Unit basis ) incurred by Immtech to manufacture the Product, which shall be ( i ) in the case of products and services acquired by Immtech from Third Parties, payments actually made to such Third · Parties, plus a reasonable allocation of administrative overhead and ( ii ) in the case of manufacturing services performed by Immtech, including manufacturing services in support of Third Party manufacturing, the actual unit costs of manufacture in bulk form or final manufacturing, as the case may be, plus the variances and other costs specifically provided for herein . Actual unit costs shall consist of direct material and direct labor costs plus manufacturing overhead directly attributable to the Product at standard, all calculated in accordance with reasonable cost accounting methods, consistently applied, of Immtech . Direct material costs shall include the costs incurred in purchasing materials, including sales and excise taxes imposed thereon and customs duty and charges levied by government authorities, and all costs of packaging components . Direct labor shall include the cost of employees engaged in direct manufacturing activities and direct or indirect quality control and quality assurance activities who are directly employed in Product manufacturing and packaging . Overhead attributable to the Product shall include a reasonable allocation of indirect labor ( not previously included in direct labor ), a reasonable allocation of administrative costs, and a reasonable allocation of facilities costs . Such allocations shall be in accordance with reasonable cost accounting methods, consistently applied, of Immtech