definiens: shall mean the amount paid to a third party for manufacture and supply of XENOGRAFT PRODUCT if neither BTl nor SANDOZ is the supplier . Where BTI or SANDOZ is the supplier of the XENOGRAFT PRODUCT, COST OF 4 GOODS SOLD shall mean the aggregate amount of the following costs incurred in manufacturing a XENOGRAFT PRODUCT ( detennined in a reasonable manner consistent with that PARTY 's internal cost accounting methods for other similar products and in accordance with general1y accepted accounting principles ): ( i ) direct lal?or ( salaries, wages and employee benefits ) ; ( ii ) direct materials ; ( iii ) depreciation, repairs and maintenance and other operating costs of production machinery utilized in the manufacture of XENOGRAFT PRODUCTS ; ( iv ) quality and in - process control ; ( v ) building operating costs assigned to the production area ; ( vi ) production and material overhead incurred in the manufacturing process, including : costs ) ; and manufacturing administration ; manufacturing personnel department ; manufacturing technology ; packaging development ; material management, storage and handling ; purchase and import area ; industrial engineering ( including non - capital mandated environmental manufacturing and employee training