definiens: net sales " for a period and a country shall mean F ~ revenues in that period with respect to the consumable component sold ( excluding free imples ) by [COMPANY] or its affiliates or distributors, in such country to a customer, less ( to the Atent included in the gross amount ) the following : cash discounts actually given, as set forth on Jhstome : invoices ; cre ~ tsor allowances actually given or made on account of price adjustments, .:ebates ( mcludmg MedlcaJd or other governmental programs, chargebacks, and contractual ~greements ), or volume reimbursements, as set forth on customer invoices ; separate stated taxes jlon sales ( e.g., sales and use, taxes ) : as . set forth on custo ~ er invoices ; delivery charges actually paJd to third party carners ( mcludmg transportallon and Insurance costs ), not to exceed~, percent ( 2 % ) of ~ revenues and as set forth on third party carrier invoices ; and separately stated credits actually given for returned goods, as set forth on customer invoices ; all as f detennined in accordance with generally accepted accounting principles ( GAAP ) . [COMPANY] shall I make written reports to [COMPANY], on an annual calendar basis on or before february 15 of the following year, stating in each report the number, description, and aggregate net sales of the consumable component sold or otherwise disposed of during the preceding carenaar year and upon which royalties are payable pursuant to Section 7.e . or7.f . above . Concurrently with the making of each report, [COMPANY] shall pay to [COMPANY] the applicable royalties in US dollars . In addition, [COMPANY] will keep such records as, under GAAP, can enable the royalties due hereunder to be accurately determined . [COMPANY] shall have the right to select an independent certified public accountant which is acceptable to [COMPANY] ( which acceptance will not be unreasonably withheld ) to inspect [COMPANY] ' records once a year on reasonable notice and during regular business hours, to verify [COMPANY] ' reports and payments . The cost for such inspection shall be borne by DuPonL Records will be retained by [COMPANY] and such records need not be retained by [COMPANY] for more than two ( 2 ) years after completion of an audit, if requested, and in any event, no more than three ( 3 ) years from their date of origin