definiens: means, with respect to a Collaboration Product, t he amount invoiced by [COMPANY], its Affiliates or sublicensees for sales of such Collaboration Pro duct to a Third Party ( ) less : ( i ) transportation charges, freight and insurance ( but only insurance related to protecting the particular shipment against physical loss or damage ) ; ( ii ) taxes ( other than taxes based on income ), tariffs, customs duty, excise or other duty and any other governmental charges, all to the extent imposed upon the sale, transportation or delivery of such Collaboration Product and paid by the selle r ; ( iii ) Third Party distributor fees ; ( iv ) trade d iscounts, quantity discounts, cash discounts, rebates, reimbu rsements, cooperative advertising allowances, credi ts or chargebacks actually granted, allowed or incurred i n the ordinary course of business in connection wit h the sale of such Collaboration Product, including any credit s, volume rebates, charge - back and prime vendor reb ates, fees, fees for services, reimbursements or similar payments granted or given to wholesalers and other distributors, buying groups, health care insurance carriers, pharmacy benefit management companies, he alth maintenance organizations or other institutions or health care organizations ; ( v ) adjustments, allowan ces or credits ( calculated on a per unit basis ) to custome rs, not in excess of the selling price per unit of such Collaboration Product, including without limitation on account of price adjustments, governmental requ irements, billing errors, rejection, damage, recalls or retur n of such Collaboration Product ; ( vi ) payments or r ebates paid in connection with sales of Collaboration Products to any governmental or regulatory authority in respect of any state or federal Medicare, Medicaid or similar prog rams ; ( vii ) royalties or technology access fees pai d to a Third Party in respect of the sale of such Collaboration Product ; ( viii ) write - offs for bad debts incurred ( net of any bad debts later recovered ) ; and ( ix ) any item substanti ally similar in character / substance to the foregoin g. Net Sales shall be accounted for in accordance with generally accepted accounting principles ( ) consistently applied in the jurisdiction in which the sales occu r, it being understood that bad debt write - off shal l be deducted in arriving at Net Sales notwithstanding that such treatment may be inconsistent with GAAP, and it bei ng further understood that [COMPANY] shall make bad debt write - off decisions consistent with its usual business pract ices