definiens: means th " ~oss amount received by DlVERSA as a direct result of sale of Product(s y DlVERSA . its Affiliates 01 their distributors, less allowances on returned or rejected goods, prepaid freight . sales or other taxes ( other than taxes based on net income ), refunds, transportation charges ( if separately stated or invoiced ) . rebates, cash . trade, and quantity discounts actually paid . Transfer of a Product to an Affiliate for sale by the Affiliate shall not be considered a sale . In the case of such a transfer to an Affiliate, the Gross Revenues shall be based on the gross amount invoiced for the Product(s ) by the Affiliate as invoiced to its customer . Sale of a Product to an Affiliate by [COMPANY] shall be considered a sale and shall be included in Gross Revenues . In the event a Product is sold as a Combination Product, Gross Revenues . for purposes of determining royalty payments on the Combination Product . shall be calculated as provided in this paragraph . The term shall mean a product consisting of a Product and at least One other Biologically Active Component . The term shall CONFIDENTIAL mean a biologically active component of a Combination Product that is itself essential to the function of the Combination Product . For purposes of this Agreement, ~ Product is not a Combination Productd it consists solely ot : me or more Product(sltand'qneor more ' Jther components that are not Biologically Active Components .. Gross Revenues in a Combination PrO(1uc ( f;hall be calculated by multiplyinglufoss Revenues of the Combination Product"'y the fraction V(A+J3)where A is the value of the Product(s ) without the other Biologically Active Components, and : s is the value of the other Biologically Active Components without the Product(s )