definiens: means costs and expenses either ( a ) paid to Third Parties by either Party or its Affiliates, ( b ) payable to Third Parties and accrued by either Party or its 6 Affiliates in accordance with GAAP applied in a manner consistent with the accruing entity 's standard accounting for such costs generally or ( c ) paid to [COMPANY] by CFFT pursuant to this Agreement or the Letter Agreement with respect to the purchase of raw materials or paid to [COMPANY] by CFFT for the fulfillment of any obligations to Third Parties for services rendered for the benefit of CFFT pursuant to a Non - Assignable Trial Agreement ( as defined in the Letter Agreement ) or for any other work specifically related to Development of the Product . Such costs include, without limitation, clinical grants, materials, the costs of prosecuting and maintaining Patent Rights and costs of a similar nature . Capital equipment costs ( other than depreciation ) associated with chemical or process development shall not be treated as Out - of - Pocket Costs