definiens: shall mean, for purposes of Section 6.2, with resp ect to a Compound Product, the gross amounts received for all quantities of such C ompound Product sold by Threshold and its Affiliate s to independent third parties in the Asian Territory af ter deducting ( a ) trade, quantity and cash discount s actually taken, ( b ) returns, rebates and allowances ( includi ng in connection with any Compound Product withdraw als or recalls ), ( c ) duties, sales and excise taxes or oth er governmental charges, ( d ) transportation, delive ry and insurance charges, ( e ) commissions or fees paid to third parties in connection with such sales to the extent not deducted above ; ( f ) retroactive price reductions i m posed by public authorities, and ( g ) sales for use in clinical trials or other scientific testing . With respect to sales of combination products, which shall consist of Compound Products combined with one or more other active ing redients, products or services, from su ch sales shall be calculated by multiplying the Net Sales of that combination by the fraction A/(A + B ), where A is the average gross selling price of the Compound Product sold separately in that country, and B is the aver age gross selling price of the other product, active ingredie nt or service sold separately in that country . In t he event that no separate sale of such other product, active ingredi ent or service is made during the applicable royalt y reporting period and in the relevant country in which the sal e of the combination product was made, then Net Sal es shall be determined by multiplying the Net Sales of such combination by a fraction ( C/(C+D ) ), where C is Threshold ’s or its Affiliate ’s standard fully - burde ned cost of the Compound Product and D is Threshold ’s or its Affiliate ’s standard fully - burdened cost of the rel evant other product, active ingredient or service . Sales among Threshold and its Affiliates shall not be deemed Ne t Sales ; provided, however, that any sales by Thres hold or its Affiliates to independent third parties shall be de emed Net Sales . In the event a Threshold sublicense e sells Compound Product in the Asian Territory, then, for purposes of determining whether payments are owed MediBIC under Section 6.3 of this Agreement, Net Sa les shall have the meaning assigned to it in the li censing agreement relating to such Compound Product between Threshold and said sublicensee