definiens: shall mean, with respect to a Product for any per iod, the gross amount billed or invoiced by Purchaser, its Affiliates or its or their Licensee or Sublicensees to Third Parties for the sale of a Product, less deductions for : ( 1 ) normal and customary trade, quantity, and pr ompt settlement discounts ( including chargebacks an d allowances ) actually allowed ; ( 2 ) adjustments, including, but not limited to, pricing adjustments and billing errors, and amounts repaid or credited by reason of rejection, return or recal l of goods, rebates or bona fide price reductions, and the actual amount of any write - offs for bad debt ( provided, however, that any amount subsequently recovered will be treated as Net Sales ) ; ( 3 ) freight, postage, shipping, and insurance ex penses to the extent that such items are separately stated on the invoice and included in the gross amount inv oiced ; ( 4 ) customs and excise duties, sales, consumptio n, value added and other taxes related to sales to the extent that such items are added to the sale price in accordance with Purchaser ’s normal accounting pr actice and separately stated on the invoice and included in th e gross amount invoiced, and which are actually pai d ; ( 5 ) rebates and similar payments required by law, which are made with respect to sales paid for by any governmental or regulatory authority such as, by wa y of illustration and not in limitation of the Part ies ’ rights hereunder, Federal or state Medicaid, Medicare or s imilar state program or equivalent foreign governme ntal program ; ( 6 ) usual and customary discounts, chargeback pa yments, rebates and reimbursements granted to wholesalers and other distributors, pharmacies and other retailers, managed care organizations, group purchasing organizations or other buying groups, pharmacy bene fit management companies, health maintenance organizations, and any other providers of health in surance coverages, health care organizations or oth er health care institutions ( including hospitals ), health car e administrators or patient assistance or other sim ilar programs ; and A-5 ( 7 ) the portion of administrative fees paid duri ng the relevant time period to group purchasing organizations or pharmaceutical benefit managers re lating to such Product