definiens: shall mean, for any period, th e gross amount invoiced by the Parties and their Affiliates and sublicensees f or the sale of Collaboration Product(s ) or Unilateral Product(s ), as applicable, to Third Parties, less deductions for : ( a ) normal and customary trade, qua ntity and cash discounts and sales returns and allowances ( other than allowances for doubtful accounts ), including ( i ) those granted on account of price adj ustments, billing errors, rejected goods, damaged goods, returns and rebates, ( ii ) administrative and other fees and reimbursements and similar payments directly related to the sale or delivery of Collaboration Product(s ) or Unilater al Product(s ), as applicable, paid to wholesalers and other distributors, buying groups, pharmacy benefit management organizations, health care insurance car riers and other institutions, ( iii ) allowances, rebates and fees directly related to the sale or delivery of Collaboration Product(s ) or Unilateral Product(s ), as applicable, paid to distributors and ( iv ) chargebacks ; ( b ) freight, pos tage, shipping and insurance costs to the extent that such items are included in the gross amount invoiced ; ( c ) customs and excise duties and other duties rela ted to the sales to the extent that such items are included in the gross am ount invoiced ; ( d ) rebates and similar payments made with respect to sales pai d for or reimbursed by any governmental or regulatory authority such as, by wa y of illustration and not in limitation of the Parties ' rights hereunder, Federa l or state Medicaid, Medicare or similar state program or equivalent foreign gove rnmental program ; ( e ) sales and other taxes and duties ( including withholding t axes established by individual country treaties not reimbursed or credi table ) directly related to the sale or delivery of Collaboration Product(s ) or Unilateral Product(s ), as applicable, ( but not including taxes assessed again st the income derived from such sale ) ; ( f ) distribution costs and expenses to the extent that such items are included in the gross amount invoiced ; and ( g ) any such invoiced amounts that are not collected by the Parties or their Affi liates or sublicensees ; provided, however, that an amount shall be deducted only once regardless of how many categories may apply to it . Any of the deducti ons listed above that involves a payment by a Party or its Affiliates or sublicensees shall be taken as a deduction in the calendar quarter in which the payment is accrued by such entity . Deductions pursuant to subsection ( g ) above shall be taken in the calendar quarter in which such sales are no longer recorded as a receivable . For purposes of determining Net Sales, the Collaboratio n Product(s ) or Unilateral Product(s ), as applicable, shall be deemed to be so ld when invoiced and a shall not include transfers or dispositions for cha ritable, promotional, pre - clinical, clinical, regulatory or governmental purposes