definiens: means, with respect to any Product and calculated in accordance with Accounting Standardsconsistently applied across Products, the gross revenue recognized by a Party, its Affiliates and sublicensees for sales of suchProduct to Third Parties, less the following deductions, to the extent such deductions are paid, incurred or otherwise taken, reasonable and customary, provided to Third Parties, and actually allowed with respect to such sales : ( a)reasonable cash, trade or quantity discounts, charge - back payments, and rebates actually grantedto trade customers, managed health care organizations, pharmaceutical benefit managers, group purchasing organizations andnational, state, or local government ; and ( b)credits, rebates or allowances actually allowed upon prompt payment or on account of claims, damaged goods, rejections or returns of such Product, including in connection with recalls, and the actual amount of any write - offsfor bad debt ( not to exceed one percent ( 1 % ) ) ( provided that an amount subsequently recovered will be treated as Net Sales ) 14 CONFIDENTIAL TREATMENT REQUESTEDCertain information in this document has been omitted and filed separately with the Securities and Exchange Commission