definiens: means the net sales recorded by [COMPANY] or any of its Affiliates or sublicensees ( excluding distributors andwholesalers ) for any Product sold to Third Parties other than such sublicensees as determined in accordance with [COMPANY] ’ AccountingStandards as consistently applied, less a deduction of [ * * * ] percent ( [ * * * ] % ) for direct expenses related to the sales of the Product, distribution and warehousing expenses and uncollectible amounts on previously sold products . The deductions booked on an accrual basisby [COMPANY] and its Affiliates under its Accounting Standards to calculate the recorded net sales from gross sales are the following, appliedwithout duplication:(a ) normal and customary trade and cash discounts;(b ) amounts repaid or credited by reasons of defects, rejections, recalls or returns ; 7Certain information marked as [ * * * ] has been excluded from this exhibit because it is both ( i ) not material and ( ii ) would be competitivelyharmful if publicly disclosed