definiens: means, with respect to a Genotropin Product or a Licensed Product, gross amounts invoiced for sales by [COMPANY] and its Affiliates and sublicensees of such GenotropinProduct or Licensed Product to Third Parties in the Territory, less in each case ( i ) bad debts anduncollectable invoiced amounts relating to sales of Licensed Product that are actually written offin accordance with GAAP, consistently applied throughout [COMPANY] and its Affiliates, provided thatany such amounts shall be capped at up to * * * of Net Sales per [COMPANY] Year and anysubsequently collected amounts will be included in the current Net Sales or Gross Profitcalculation, as the case may be, ( ii ) sales returns and allowances actually paid, granted oraccrued, including trade, quantity and cash discounts and other adjustments, including thosegranted on account of price adjustments, returns, rebates, chargebacks or similar paymentsgranted or given to wholesalers or other institutions, ( iii ) adjustments arising from consumerdiscount programs or other similar programs, ( iv ) customs or excise duties, valued - added taxes, sales taxes, consumption taxes and other taxes ( except income taxes ) or duties relating to sales, any payment in respect of sales to the United States government, any state government or anyforeign government, or to any other governmental authority, or with respect to any government - subsidized program or managed care organization, each to the extent not already reflected in theamount invoiced, and ( v ) freight and insurance for the Licensed Product to the extent included inthe amount invoiced . Net Sales shall be calculated by [COMPANY] using a method of value allocationconsistent with the method used with [COMPANY] ’s other collaborations