definiens: means the amount billed by Discovery or an Affiliate or any sublicensee, or on behalf of or for the benefit of Discovery or an Affiliate or any sublicensee, for sales of the Product to a third party in the Territory less : ( i ) discounts, including cash and quantity discounts, charge - back payments, refunds and rebates granted to managed health care or similar organizations or to federal, state and local governments ( including, without limitation, Medicaid rebates ), their agencies, and purchasers and reimbursers or to trade customers, including but not limited to, wholesalers and chain and pharmacy buying groups, ( ii ) credits or allowances actually granted upon claims, damaged goods, rejections or returns of such Product, including recalls, regardless of the party requesting such, ( iii ) freight, postage, shipping and insurance charges actually allowed or paid for delivery of Product, to the extent billed, ( iv ) taxes, duties or other governmental charges levied on, absorbed or otherwise imposed on sale of such Product, including without limitation value - added taxes, or other governmental charges 2 otherwise measured by the billing, when included in billing, as adjusted for rebates, charge - backs and refunds, and ( v ) bad debts related to Product sales ( defined as any bills unpaid for 120 days after due ), provided that ( a ) any subsequent collection by Discovery on such bad debt shall be restored as Net Sales at the time of collection, and in the amount, of such collection, and ( b ) Discovery shall follow commercially reasonable practices of collecting and otherwise administering debt related to Product sales