definiens: of a Licensed Product means the actual billings for the Saleof that Licensed Product, determined as follows : ( a ) if the Licensed Product is Sold by TILLOTTS or a Sublicensee toa third party that is not a Related Party, actual billings will be TILLOTTS ’ or that Sublicensee ’s actual gross invoiceamounts, as the case may be ; ( b ) if the Licensed Product is Sold by TILLOTTS or a Sublicensee to a Related Partyfor subsequent Sale, actual billings will be that Related Party ’s actual gross invoice amounts for that subsequentSale . Actual billings will be determined based on Licensed Products Sold in a dosage form suitable for final usage bythe administering physician or other consumer . If not Sold in that form, actual billings will be determined by convertingthe quantity of Licensed Product actually Sold into the quantity that would have been Sold in final dosage form andmultiplying that adjusted quantity by the customary unit price for Licensed Products Sold in each pertinent country infinal dosage form . When factually applicable or taken, the following deductions shall be deducted from actual billingsas determined above : ( i ) sales taxes, use taxes, duties or other governmental charges imposed upon particular salesto the extent included as a separate charge in the amount of actual billings ; ( ii ) amounts allowed or credited onrejections or returns, including recalls ( to the extent such Licensed Product is not replaced by the supplier ) ; ( iii ) normaland customary discounts, including cash discounts, discounts to payors, health insurances or similar organizations orgovernment organizations, rebates paid, credited, accrued or actually taken, including chargebacks, and mandatedretroactive price reductions or adjustments made under TILLOTTS ’ programs designed to enhance availability of theLicensed Product to low - income patients, in each case to the extent actually allowed or granted from the billedamount ; ( iv ) charges for freight, postage, shipping, freight allowances and outbound transportation costs, includingrespective insurances, paid to the extent included as a separate charge in the amount of the actual billings ; and ( v)actual uncollectible accounts receivables ( to the extent reflected in TILLOTTS ’ books ) . Billings and deductions will bedetermined in accordance with the accrual method of accounting in accordance with the principles of the InternationalFinancial Reporting Standards ( IFRS ), applied on a consistent basis . No other allowance or deduction may be made, including allowances or deductions for any commissions or sales fees by whatever name known . For purposes ofconverting to U.S. Dollars Net Sales Value on invoice prices in currencies other than U.S. Dollars, TILLOTTS mustfirst determine the Net Sales Value in TILLOTTS functional currency, by converting the pertinent foreign currency, thereafter convert such values into U.S. Dollars and then determine the earned royalty payable on a Licensed Productin United States currency at the average daily exchange rate for that foreign and that functional currency over thecalendar quarter in which the Sale is made, determined by reference to the Currency Converter Table ( fxDaily ® )published by oanda.com . If Subsection 9.3.4(b ) is applicable, then the term in this definition shall bereplaced with for purposes of determining CPP ’s payment obligations under Subsection 9.3.4(b )