definiens: means the aggregate amount invoiced for Sales of Licensed Products hereunder, less the following deductions : ( 1 ) Discounts ( including price adjustme nts related to commercial programs ), returns, allow ances, and wholesaler charge - backs allowed and taken, but in any case only in amounts consistent with reasona ble and customary industry standards ; ( 2 ) Commissions to pe rsons other than Affiliates ; ( 3 ) Import, export, ex cise, sales or use taxes, value added taxes, and other taxes, t ariffs or duties, but not state, federal or foreign income taxes ; ( 4 ) Freight, handling, transportation and insurance prepaid or allowed ; and ( 5 ) Amounts allowed or cre dited on retroactive price reductions or rebates . Any refund of any of the foregoing amounts ( including any rev ersal of a bad debt allowances, whether arising from amounts r eceived in settlement of bad debts or otherwise ) pr eviously deducted from Net Sales shall be appropriately cred it upon receipt thereof . Licensee may, at its optio n, allocate the above deductions from Sales of Licensed Product s based upon accruals estimated reasonably and cons istent with Licensee ’s standard business practices . If Lic ensee elects to utilize such accruals, actual deduc tions will be calculated and, if applicable, adjustments will be made on an annual basis . If a Licensed Product is s old in combination with another product or products, Net S ales under such circumstances shall be calculated b y multiplying Net Sales of the combination by the fra ction A/(A+B ), in which A is the invoice price of t he Licensed Product when sold separately, and B is the total invoice price of any other product or produc ts in combination when sold separately . If, on a country- by - country basis, the other product or products in the combination are not sold separately, Net Sales, for purposes of determining royalties on the combinati on Licensed Product shall be calculated by multiplying actual Net Sales of such combination Licensed Prod uct by the fraction A / C where A is the invoice price for t he Licensed Product if sold separately and C is the invoice price of the combination Licensed Product