definiens: shall mean the amounts invoiced on the sales of a product by a . Party and its AFFILIATES and their distributors to independent, unrelated third parties in bona fide.arms ' length transactions, less the following deductions properly documented actually allowed and taken by such third parties and not otherwise recovered by or reimbursed by the Party or its AFFILIATES : ( a ) trade, cash and quantity discounts, including charge backs ; ( b ) taxes on sales ( such as sales or use taxes ) to the extent added to the sales price and set forth separately as such in the total amount invoiced ; ( c ) freight, insurance and other transportation charges to the extent added to the sales prices and set forth separately as such in the total amount invoiced ; ( d ) amounts repaid or credited by reason of rejections, defects or returns, or because of retroactive price reductions, or due to governmental laws or regulations requiring rebates ; ( e ) import duties ; and means further the amount of fair market value of all other consideration received by the Party or its AFFILIATES in respect of the product, whether such consideration is in cash, payments in kind, exchange or other forms ; but does not mean sales of the product between or among a Party and its AFFILIATES . In the event a product is sold in combination with other active components ( ), NET SALES for purposes of royalty payments on the Combination Products shall be calculated by multiplying the NET SALES of the Combination Product by the fraction A / CA+B ), where A is the gross selling price of the product sold separately CLe ., without the other active components ) and B is the gross selling price of the other active components . In the event that no such separate sales are made NET SALES of the Combination Product by C/(C+D ) where C is the fully allocated cost of the product ( not including the other active components ) and D is the fully allocated cost of such other active components such costs being determined using generally accepted accounting procedures consistently applied . Notwithstanding the following, in no event shall the fractional value of a product be less than fifty percent ( 50 % ) of the Combination Product