definiens: shall mean the amount billed by ORTHO, or an AFFILIATEfrom the sale of LICENSED PRODUCTS to independent third parties less : ( i)discounts, including cash discounts, or rebates actually allowed or granted fromthe billed amount, ( ii ) credits or allowances actually granted upon claims orreturns 8 < PAGE > regardless of the party requesting the return, ( iii ) freight charges paid fordelivery, and ( iv ) taxes or other government charges levied on or measured bythe billing amount whether absorbed by the billing or the billed party . In theevent that LICENSED PRODUCTS are sold in the form of a combination productcontaining one or more active ingredients, other than EPO, HEPATITIS B or IL-2,NET SALES for such combination products will be calculated by multiplying actualNET SALES of such LICENSED PRODUCTS by the fraction A/(A+B ) where A is theinvoice price of the LICENSED PRODUCT if sold separately and B is the totalinvoice price of any other active component or components in the combination ifsold separately by ORTHO or a single AFFILIATE . If on a country - by - country basisthe LICENSED PRODUCT and the other active component or components in thecombination are not sold separately in said country by ORTHO or a singleAFFILIATE, NET SALES for purposes of determining royalties on the combinationshall be calculated by multiplying NET SALES of the combination by the fractionC/(C+D ) where C is ORTHO 's or AFFILIATE 's total actual cost of LICENSED PRODUCTat the point of formulation into the combination product and D is ORTHO 's orAFFILIATE 's total actual cost of the other active ingredient(s ) included in thecombination product at such point