definiens: means the amount invoiced by P harmion for sales of Product to a third party less deductions for : ( i ) shipping, freight charges or insurance paid to the extent separately se t forth in the amount invoiced to [COMPANY] 's customer ; ( ii ) sale s and excise taxes and any other direct taxes paid by [COMPANY] ; ( iii ) retroactive price reductions ; ( iv ) rebates, non - cash rebates or allowances actually incurred ; ( v ) quantity discounts, Cash Dis counts or chargebacks actually incurred in the ordinary course o f business in connection with the sale of such Product ; and ( vi ) allowan ces or credits actually granted to customers, not in excess of the selling price of such Product on account of governmental laws, w ritten regulations 4 < PAGE > or code, price differences, rejection, out dating, spoiled, damaged, recalls or returns of such Product, with a ll such items in ( i ) through ( vi ) being incurred or accrued in accordan ce with U.S. generally accepted accounting principles . There shal l be no deduction from the invoiced sales price for sales commissions paid to independent sales representatives or employees of [COMPANY] . To the extent that the Product is sold by [COMPANY] in combination with other products, then the Net Sales for such combined sales shal l be calculated as follows : Net Sales = C * [ P / ( P+O ) ], where are the net revenues from the co mbined sale, is the price of the Product which is part of such combi ned sale, when the Product is separately sold, and is the price of t he other components of the combined sale when separately sold, provid ed that if the fraction resulting from such calculation is less th an 0.70, then the result shall be deemed for purposes of this Agree ment to be 0.70