definiens: shall mean the sum of the following costs incurred by SHEARWATER, lo the extent reasonably allocable to the REAGENT sold to EYETECH by SHEARWATER, and to other services performed by SHEARWATER for EYETECH : all aCQuisition and production costs relating to the manufacture Qf REAGENT determined on an absorption or full costing basis, including, without limitation . direct and indirect costs of materials ang § ! JPRlies, girect and indirect wage and labor costs . direct and indirect production costs ( both fixed and variable ), reasonable allocation of corporate 2,verhead . a reasonable allocation of Rroduct liability insurance obtained for PRODUCT which names EYETECH as an additional insured, general and administrative eXRenses related to the Rroduction process, excess caRacity reserved for manufacture of REAGEN ! tQr eYETEcH in accordance with EYEIECH 'S forecasts pursuant to Section 4, and the cost of repairs, Page 7 of 45 maintenance . utilities . rent, production supervisorY wages, quality assurance and quality control . inventory, overage or waste to the extent reasonablv incurred in reliance on EYETECH 'S forecasts and orders for REAGENT, regulatory compliance and inspection . insurance premium to cover shipment of REAGENT to EYETECH . small tools not capitalized . and other costs incident to and necessarY for production