Net Revenues

Net Revenues. Means the gross amount invoiced by ARCADIA or its Affiliates for the sale or other disposition of Products during the applicable period in arm's length transactions after deduction of the following items, provided and to the extent such items are actually incurred and do not exceed reasonable and customary amounts in each market in which such sales or other dispositions occurred: (i) commissions paid to non-Affiliated third parties; (ii) royalties paid for licenses necessary to develop and/or... commercialize Products; (iii) trade and quantity discounts and rebates; (iv) credits or allowances made for rejection or return of previously sold Products; (v) any tax or government charge levied on the sale, such as value added tax (but not including income tax); (vi) any charges for freight or insurance, and (vii) bad debts and/or uncollectible amounts, provided that all such amounts have been formally designated as such in accordance with generally accepted accounting principles (GAAP), and further provided that such allowance shall not be applicable in the event and to the extent ARCADIA ultimately collects any such designated amounts. In the event that the Products are sold or otherwise transferred to an Affiliate or a third party for a price lower than if they had been sold to a third party in an arm's length transaction ("fair market value"), then Net Revenues shall be the fair market value of the Products to an end-user of the Products to whom ARCADIA customarily in the ordinary course of its business sells Products. Net Revenues also shall include all amounts received by ARCADIA in connection with any license of all or part of the Blue Horse IP, including, without limitation, license fees, license maintenance fees, and milestone payments, but not including equity consideration or reimbursements for actual research and development costs incurred by ARCADIA. View More

Net Revenues. Shall mean Gross Revenues less the cumulative amount of all Operating Costs, Transaction Costs and Investment or Capitalized Costs from and after the Effective Date to the date of the collection of the Gross Revenues that have not been previously recouped by KEM, LT or CILD, as applicable, as a result of a previous sale, lease or disposition of any of the Riverside County Assets and/or the Subsidiary Units.