definiens: shaIl mean all direct and indirect costs incurred in the manufacturing, testing and storage of Development Compounds and Licensed Products, as such terms are defmed herein ( allocated to the production of such DeVelopment Compounds and Licensed Products, as the case may bc, in a fair and equitable manner in conformance with generally accepted accounting principles, consistently applied with those established with respect to other products ), with such costs including, but not limited to : ( a ) direct variable costs ( e.g., excipients, packing material, wages ) ; ( b ) . allocated semi - variable costs ( e.g., wages and salaries of supervisors, laboratory technicians and service personnel, other personnel costs, repair and maintenance of machinery, stock material used internally, stationary and acquisitions ) ; ( c ) fixed costs ( e.g., wages and salaries of Director of Production, staff, head of departments, supervisors and laboratory technicians, and other personnel costs ) ; and ( d ) distributed costs ( e.g., rent, energy ) ; ( e ) an allocation for overhead in an amount equal to forty percent ( 40 % ) of the aforementioned Costs as herein defined ; provided, however, that if a Party engages a toll manufacturer or otherwise incurs costs due to the payment of an invoice submitted by a third party in connection with services rendered in connection with this Agreement, then with respect to such services shall mean the amount(s ) set forth on said invoice(s ) and paid by the applicable Party, all provided that the third party has been engaged on competitive terms