definiens: shall mean the gross amount billed by COMPANY and its AFFILIATES and SUBLICENSEES for LICENSED PRODUCTS, less the follow ing : ( i ) customary trade, quantity, or cash discounts to the extent actually allowed and taken ; ( ii ) amounts repaid or credited by reason of reject ion or return ; ( iii ) to the extent separately stated on purchase o rders, invoices, or other documents of sale, any taxes ( value - added or sales taxes ), tariffs, duties, or other governmental charges levied on the produ ction, sale, transportation, delivery, or use of a LICENSED PROD UCT which is paid by or on behalf of COMPANY ; ( iv ) outbound transportation costs prepaid or allow ed and costs of insurance in transit ; and ( v ) amounts written off by reason of uncollectible bad debt, but not to exceed [ * * ] percent ( [ * * ] % ) of the gross amount billed by COMPANY and its AFFIL IATES and SUBLICENSEES for LICENSED PRODUCTS in a given REPORTING PERIOD ; ( vi ) discounts or rebates or other payments require d by law to be made under Medicaid, Medicare or other governmental special medical assistance progr ams, to the extent actually allowed and taken ; and ( vii ) any item substantially similar in character o r substance to any of the foregoing permitted by US GAAP prevailing at the time and customary in the pharmaceutical industry at the time