definiens: means the gross amount invoiced by Buyer, its Affiliates, and its Licensees for sales of Products in the Royalty Field to Third Parties ( excluding sales by and between Buyer, its Affiliates, and its Licensees ) less the following : ( a ) shipping, postage, freight, and transportation charges and other related charges, such as insurance, directly chargeable to the sale of the Product ; ( b ) sales and excise taxes, customs duties, and other taxes, duties and governmental charges ( including any tax such as a value added or similar tax or government charge ) levied on the sale, transportation, delivery, or exportation of the Product and actually paid by the seller . in accordance with GAAP, but excluding any taxes and governmental charges calculated based on any profit or income earned by Buyer or its Affiliates or Licensees ; ( c ) governmental charges imposed upon the sale, manufacture, or use of the Products ; ( d ) distributor 's fees, rebates ( including cash and non - cash rebates ), returns, and allowances ; ( e ) discounts ( including trade, quantity, and cash discounts ), charge - backs, retroactive price reductions, refunds, returns, and billing errors ; ( f ) allowances and credits on account of governmental requirements, rejections, recalls, defects, or returns ; and ( g ) other similar or customary deductions taken in the ordinary course of business or in accordance with GAAP