definiens: means the gross amount invoiced by ARCADIA or its Affiliates for the sale or otherdisposition of Products during the applicable period in arm ’s length transactions after deduction of the following items, provided and to the extent such items are actually incurred and do not exceed reasonable and customary amounts ineach market in which such sales or other dispositions occurred : ( i ) commissions paid to non - Affiliated third parties;(ii ) royalties paid for licenses necessary to develop and/or commercialize Products ; ( iii ) trade and quantity discountsand rebates ; ( iv ) credits or allowances made for rejection or return of previously sold Products ; ( v ) any tax orgovernment charge levied on the sale, such as value added tax ( but not including income tax ) ; ( vi ) any charges forfreight or insurance, and ( vii ) bad debts and/or uncollectible amounts, provided that all such amounts have beenformally designated as such in accordance with generally accepted accounting principles ( GAAP ), and furtherprovided that such allowance shall not be applicable in the event and to the extent ARCADIA ultimately collects anysuch designated amounts