definiens: means the gross amount billed or invoiced on sales by Company and its Affiliates and Sublicensees of Licensed Products and Licensed Services, less the following : ( a ) customary trade, quantity, or cash discounts to non - affiliated brokers or agents to the extent actually allowed and taken ; ( b ) alnounts repaid or credited by reason of rejection or return ; ( c ) to the extent separately stated on purchase orders, invoices, or other docurnents of sale, any taxes or other governmental charges levied on the production, sale, transportation, delivery, or use of a Licensed Product or Licensed Service which is paid by or on behalf of Company ; and ( d ) outbound transportation costs prepaid or allowed and costs of insurance in transit ; and ( e ) allowance for bad debt that is customary and reasonable for the industry and in accordance with generally accepted accounting principles . Notwithstanding anything to the contrary in this Section 1.8, Net Sales does not include sales of Licensed Products at or below the fully burdened cost of manufacturing solely for research or clinical testing or for indigent or similar public support or compassionate use programs