definiens: shall mean for any particular Product : ( i ) an amount of development cost determined [ by multiplying the hourly FTE cost specified in the Development Plan for such Product by the actual number of hours that AFFX personnel work on development of that Product, plus ( ii ) out - of - pocket expenses incurred by AFFX ( including, but not limited to, up - front or lump - sum fees paid to third parties to license intellectual property ) . For purposes of reimbursement under Section III ( d ), the maximum number of hours for which AFFX will be reimbursed for AFFX Development Cost for a Product shall be the number of hours specified in the Development Plan for such Product plus ten percent ( 10 % ) thereof ], unless the parties mutually agree by written amendment of such Development Plan to increase that number . AFFX Development Cost shall [ not be an element of Deductible Expenses . ] ( d ) shall mean a genetic analysis chip developed by and manufactured by AFFX according to the Specifications for the Kit in which that Chip is to be incorporated ( or according to Exhibit A, as applicable )