definiens: means, with respect to a Licensed Product, the gross amounts received by NAVB, itsAffiliates and sublicensees in respect of sales in the Territory of such Licensed Product by NAVB, its Affiliates andsublicensees to unrelated Third Parties, in each case less the following deductions : ( a ) the total of ordinary and customary trade discounts earned and actually taken or granted ; ( b ) any statutory or contractual rebates paid to any governmental or any other public authority, agencyor entity or to other health maintenance organizations ; ( c ) cash and quantity discounts actually allowed ; ( d ) allowances and adjustments actually credited or paid to customers for recalled, rejected, spoiled, damaged, outdated and/or returned Licensed Products ; ( e ) chargebacks and other amounts due from NAVB, its Affiliate or its sublicensee, as applicable, onsale to customers, or on sale by customers to Third Parties ( including without limitation end users ), or on dispensing of theLicensed Product ; ( f ) freight, insurance, transportation costs and handling charges identified by NAVB, its Affiliate or itssublicensee, as applicable, in its invoices to independent Third Parties ; ( g ) bad debt recognized by NAVB, its Affiliates and/or sublicensees for accounting purposes as notcollectible but not to exceed one percent ( 1 % ) of the invoiced sales prices ; ( h ) sales commissions, distribution fees and other similar fees paid to Third Party distributors and / orselling agents, subject to a maximum of twenty - seven and one half percent ( 27.5 % ) of gross amounts received by NAVB fromsales of Licensed Product(s ) ; ( i ) excise, sales and value added taxes included by NAVB, its Affiliate or its sublicensee, as applicable, in its invoices to independent Third Parties ; and ( j ) customs duties, tariffs, and other compulsory payments made by NAVB, its Affiliate or itssublicensee, as applicable, to national provincial and local government authorities