definiens: . Net Sales means, with respect to a Royalty Bearing Product, the gross amount of sales of such Royalty Bearing Product invoiced by [COMPANY] or its Affiliates to Third Parties, less the following to the extent relat ed to such Royalty Bearing Product and incurred by such [COMPANY] or its Affiliates and invoiced to the Third Party : ( a ) sales returns and allowances actually paid, granted or accrued, including trade, quantity and cash discounts and any other adjustments, including those granted on account of price adjustments or billing errors ; ( b ) rejected goods, damage d or defective goods, recalls, returns ; ( c ) rebates, chargeback rebates, compulsory rebates, reimbursements or similar payments granted or given to wholesalers or other distributors, buying groups or health care insurance carriers ; ( d ) non - collectable receivables ; - 8 - ( e ) customs or excise duties, sales tax, consumption tax, value added tax, and other taxes ( except income taxes ) ; or ( f ) charges for packing, freight, shipping and insurance