definiens: means the gross amount invoiced by Licensee for sales, leases, and other dispositions of LicensedProducts to third parties minus ( i ) all trade, quantity, and cash discounts actually allowed, ( ii ) all credits and allowancesactually granted due to rejections, returns, billing errors, and retroactive price reductions, ( iii ) shipping, handling, freight, customs duties, consular fees and other like charges ( iv ) excise, sale and use taxes, and ( v ) actual uncollectable accountsreceivable . If the Licensee or a sublicensee, as the case may be, sells, leases, or disposes of a Licensed Product to an Affiliate, the for that transaction will be equal to the price the Licensee or the sublicensee, as the case may be, chargesnon - Affiliate third parties for the Licensed Product minus ( i ) all trade, quantity, and cash discounts actually allowed, ( ii ) allcredits and allowances actually granted due to rejections, returns, billing errors, and retroactive price reductions, ( iii ) shipping, handling, freight, customs duties, consular fees and other like charges ( iv ) excise, sale and use taxes, and ( v ) actualuncollectable accounts receivable, or if the Licensee or the sublicensee does not offer to sell the Licensed Product to a thirdparty, the price charged by the Licensee or the sublicensee for a product of similar kind, quality, and quantity minus ( i ) alltrade, quantity, and cash discounts actually allowed, ( ii ) all credits and allowances actually granted due to rejections, returns, billing errors, and retroactiveprice reductions, ( iii ) shipping, handling, freight, customs duties, consular fees and other like charges ( iv ) excise, sale and usetaxes, and ( v ) actual uncollectable accounts receivable . Notwithstanding the issuance of two or more Licensed Patents or thefiling of Patent Applications, a single royalty payment is payable for each product, good, or service that constitutes aLicensed Product made, sold, or transferred for value . In the event any Licensed Product is sold as a component of acombination of functional elements, Net Sales Price for purposes of determining royalty payments on such combination shallbe calculated on a worldwide basis by multiplying the Net Sales Price of such combination by the fraction A over A+B, inwhich is the average invoice price of the Licensed Product portion of the combination when sold separately during theaccounting period in which the sale was made, and is the average invoice price of the non - Licensed Product portion of thecombination when sold separately during the accounting period . In the event no separate sale of either such above - designatedLicensed Product or such above - designated non - Licensed Product portion of the combination is made during the accountingperiod in which the sale of the combination was made, Net Sales Price shall be calculated by multiplying Net Sales of thecombination by the fraction A / C where A is the average invoice price of the Licensed Product when sold separately and C isthe average invoice price of the combination product, such costs being arrived at using the standard accounting procedures ofLicensee which will be in accord with generally accepted accounting practices . If neither the Licensed Product nor thecombination product is sold separately by Licensee, the Net Sales Price shall be calculated as above except that A shall be thetotal cost of tangible materials and supplies used in the manufacture of the Licensed Product and C shall be the total cost oftangible materials and supplies used in the manufacture of the combination product