definiens: shall mean [ the total amount of revenue recognized by Bio - Rad or l. RY - of its Affiliates in accordance with GAAP during the applicable accounting perio~ solely ' With respect to the sale of Instruments and/or Systems Software by BJO - Rad or any of ItS Affiliates, less ( i ) actual returns of Instruments or Systems Software during such period ( for \yhich .no replacement Instrument or Systems Software is provided ), ( ii ) adjustments for bad debt with respect to previous sales of Instruments or Systems Software actually realized during such period, and ( iii ) transportation and delivery charges, including insurance premiums, and excise, sales or other taxes, tariffs or duties on such Instruments or Systems Software, to the extent such items are separately itemized on the applicable invoice . Net Revenue in the ~ase of Instruments or Systems Software used by Bio - Rad or its Affiliates in a service business or other commercial enterprise ( but not Bio - Rad 's or its Affiliates ' internal research and development ) shall mean the fair market value of such Instruments or Systems Software as if they were sold to an unrelated third party in similar quantities . It is the Parties ' intention that Net Revenue will not include any transfer of Systems to any Affiliate, unless the Affiliate is the end user of such Systems . ) 11 - CERTAINCONFJDENTJAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 248 - 2 OF THE StCURITIES EXCHANGE ACT OF 1934, AS AMENDED