definiens: means : ( a ) with respect to a Product, the gross amounts invoiced or otherwise billed by F osun and its Affiliates and Sublicensees with respect to sales of such Product to Third Parties in the Terr itory, less in each ( i ) case sales returns and allowances actually paid or granted in the ordinary course of business, including trade, quantity and cash discounts, adjustments gra nted on account of rejected goods, damaged or defec tive goods, recalls, returns, rebates, chargeback rebates, ( ii ) customs or excise duties, sales tax, consumption t ax, value added tax, and other taxes ( except income taxes ) or dutie s relating to sales, to the extent paid or allowed by the selling party, ( iii ) any payment in respect of sales to the United States government, any state government or any foreign government, or to any other Governmental Authority, or with respect to any government - subsidized progr am or managed care organization, and ( iv ) freight and ins urance ( to the extent that Fosun, its Affiliates or its Sublicensees bear the cost of freight and insurance for the Prod uct ) . Net Sales shall be determined from books and records maintained in accordance with GAAP, as consistently applied by Fosun with respect to sales of the Prod uct