definiens: means amounts invoiced by LICENSEE or a sublicensee for SALES of LICENSEDPRODUCTS, LICENSED SERVICES, and LICENSED METHODS, less the sum of customary deductionsto the extent permitted under U.S. Generally Accepted Accounting Principles and actually taken, whichmay include cash, trade or quantity discounts, discounts or rebates to governmental, supranational, buying groups ( such as PAHO, UNICEF, GAVI, or the Gulf Consortium ), or managed care organizations, credits or deductions for rejected product, returns, expired product or bad debts ; sales, use, tariff, import / export duties or other excise taxes or duties ( but not income taxes derived from such sales ) ; andhandling and transportation charges ; and value added taxes but only to the extent such tax is not subjectto a credit and deduction to a taxing authority . Sales of a LICENSED PRODUCT by and betweenLICENSEE and its Affiliates and Sublicensees are not sales to third parties and shall be excluded fromNet Sales calculations for all purposes ; provided that any resale by the purchaser to a third - partydistributor or to a third - party for end use, shall be included in Net Sales . Compassionate use,, sales made in connection with clinical trials, and product donations shall be excluded fromNet Sales calculations