definiens: means the gross amount billed or invoiced for the Licensed Product by AFT and its Affiliatesto Third Parties ( including wholesalers or distributors ) in Territory B, less the following deductions, in each case, related specifically to the Licensed Product and actually allowed and taken by such Third Parties and not otherwiserecovered by or reimbursed to AFT, its 1 Affiliates, or related parties, or any employee, officer, director or security holder of any of the foregoing : ( i ) normal trade, cash and quantity discounts actually given in bona fide arm ’s length transactions ; ( ii ) bona fide, arm ’s length price reductions or rebates, retroactive or otherwise, imposed by orotherwise paid to governmental authorities or insurance payee ; ( iii ) taxes on sales ( such as sales, value added, or use taxes but excluding Timber ’s income taxes ) tothe extent added to the sale price and set forth separately as such in the total amount invoiced ; ( iv ) amounts repaid or credited by reason of rejections, return or recall ; ( v ) rebates or reimbursement ( in accordance with its standard practices and consistent with itsaccounting practices ) as being paid during the relevant time period to individual or group purchasers of the LicensedProduct that are solely on account of the sale of such Licensed Product ; ( vi ) any invoiced amounts from the immediately prior period which are not collected and are written offin good faith by AFT or its Affiliate, including bad debts, but not to exceed five percent ( 5 % ) of the gross sales duringsuch period ; provided, that if any uncollected, written off or written down amounts are recovered, then such amountswould constitute part of Net Sales for the period in which such amounts are recovered ; and ( vii ) freight, insurance and other transportation charges to the extent added to the sale price and setforth separately as such in the total amount invoiced to the extent actually incurred and not charged to or reimbursedby the customer