definiens: means for commercial supplies of a Warner - [COMPANY] Product, the fully allocated manufacturing cost ( determined in a reasonable manner consistent with Warner 's normal internal accounting practices and in accordance with generally accepted accounting principles ( ) ) which includes ( i ) direct and indirect labor ( salaries, wages and employee bene ﬁts ) ; ( ii ) direct and indirect materials ; ( iii ) operating costs of building and equipment used in connection with the manufacture of the Warner - [COMPANY] Product ; ( iv ) allocated depreciation and repairs and maintenance ; ( V ) quality and in - process control and regulatory compliance ; ( vi ) any charges for obsolescence, out of date product, spoilage, scrap or rework costs ; ( vii ) BUSDOCS:721645.1 -3- royalties paid to third parties ( except royalties in respect of rights that a party hereto currently has an interest in or could have an interest in pursuant to any currently existing agreements ) and ( viii ) the net cost or credit of any value added taxes paid with respect to the manufacture of the Warner - [COMPANY] Product . To the extent that manufacturing of a Warner - [COMPANY] Product or any component thereof is performed for Warner by a third party ( which is not an Afﬁliate of Warner ), amounts paid to such third party in connection with the manufacturing of such Warner - [COMPANY] Product or any component thereof shall be added to the aggregate amount of the applicable hereinabove items ( i ) through ( viii )