definiens: shall mean the consideration received from . or fair market value attributable to, each Sale after deducting . if not previously deducted . from the amount invoiced ( as determined in accordance with United States generally accepted accounting principles consistently applied to all products of Company ) . the following . in each case to the extent included in the gross invoice price : 1.8.1 Trade . quantity and cash discounts allowed ; 1.8.2 Discounts, refunds . rebates ( including federal, state or local government rebates ), chargebacks, retroactive price adjustments . all to the extent allowed ; 1.8.3 Refunds or credits for actual returns of a Licensed Product ; 1.8.4 Any tax imposed on the production, sale, delivery or use of a Licensed Product, including, without limitation . sales . use, excise or value added taxes, other than income taxes ; 1.8.5 Freight and insurance charges on out - bound Licensed Product from the Company shipping dock ( or in the event the Company uses a contract manufacturer, such manufacturer 's shipping dock ) ; 1.8.6 Any administrative fees paid to group purchasing organizations or managed care entities necessary for sale of Licensed Product ; and 1.8.7 A reasonable allowance for bad debt, which allowance shall be determined consistent with Company bad debt allowance for other pharmaceutical or biologic products, and shall be reconciled no less than once per year to actual bad debt experience . In the event a Licensed Product is sold as part of a product containing one or more clinically active components ( each . a Combination Product ) . the Net Sales from the Combination Product . for the purposes of determining royalty payments . shall be determined by mUltiplying the Net Sales of the Combination Product ( as determined using the standard Net Sales definition ), during the applicable royalty reporting period . by the fraction, A / A+B. where A is the average unit net sales price of the Licensed Product in the applicable country . where net sales is calculated in the same manner as Net Sales . when sold separately in finished form and B is the average unit net sales price in the same country ( net sales being calculated in the same manner as Net Sales ) of the other products whose clinically active components are included in the Combination Product when such products are sold separatelv in finished form at the same dosage levels