definiens: shall mean the total amount inv oiced to third parties on sales of Licensed Product s by Company, its Affiliates, or Sublicensees, for which royalties are due under Article 3 below, less the following reasonable and customary deductions actually given : ( i ) all trade, cash and quantity credits, discount s, refunds or government rebates ; ( ii ) amounts for claims, allowa nces or credits for returns, retroactive price redu ctions, or chargebacks ; ( iii ) packaging, handling fees and pre paid freight, sales taxes, duties and other governm ental charges ( including value added tax ) shown on the fa ce of the invoice ; and ( iv ) provisions for uncollec tible accounts determined in accordance with US GAAP, con sistently applied to all products of the selling pa rty, provided that in no event shall deductions for unco llectible accounts in any annual period exceed [ * * * ] percent ( [ * * * ] % ) of the cumulative Net Sales in such annual period . In the event that Company and a third party enter into a barter transaction pursuant to which Company transfers Licensed Products to such third party in exchange for non - cash consideration provided in lieu of cash, then Net Sales shall be calculated based on the v alue of the non - cash consideration received, provided that in n o event shall the transferred Licensed Products be valued at more than the then - current customary sales price fo r such Licensed Products invoiced to third parties or fair market value if there are no current invoices to th ird parties . For the removal of doubt, Net Sales sh all not include sales by Company to its Affiliates for resa le, provided that if Company transfers Licensed Pro ducts to an Affiliate, and the Affiliate retransfers the Licens ed Products to third - party purchaser, then Net Sale s shall be the price charged by the Affiliate to third - party purch aser, less documented allowable deductions