definiens: shall mean the sum of the following : a ) LICENSEE ’s and its SUBLICENSEE ’S billings for LICENSED PRODUCTS ( including, explicitly, the PROGRAM ), LICENSED PROCESSES, and LICENSED SERVI CES, less the sum of the following items, providing that these items are payable by LICENSEE ( or by its SUBLICENSEE ) or deductible from LICENSEE ’s billings ( or from SUBLICENSEE ’S billings ) within sixty ( 60 ) days of receiving payments from LICENSEE ’s ( or SU BLICENSEE ’S ) customer(s ): i. discounts allowed in amounts customary in the trade for quantity purchases, cash payments, prompt payments, wholesalers and distributors ; ii . sales, tariff duties and/or use taxes directly imposed and with reference to particular sales ; iii . outbound transportation prepaid or allowed ; iv . amounts allowed or credited on returns or refunds ; and v. allowance for bad debt, not to exceed Five Percent ( 5 % ) of NET SALES per calendar year