definiens: means the gross amount invoiced by Buyer, its Affiliates, and its Licensees for sales of Products in the Royalty Field to Third Parties ( excluding sales by and between Buyer, its Affiliates, and its Licensees ) less the following : ( a ) shipping, postage, freight, and transportation charges and other related charges, such as insurance, directly chargeable to the sale of the Product ; ( b ) sales and excise taxes, customs duties, and other taxes, duties and governmental charges ( including any tax such as a value added or similar tax or government charge ) levied on the sale, transportation, delivery, or exportation of the Product and actually paid by the seller, in accordance with GAAP, but excluding any taxes and governmental charges calculated based on any profit or income earned by Buyer or its Affiliates or Licensees ; ( c ) governmental charges imposed upon the sale, manufacture, or use of the Products ; ( d ) distributor 's fees, rebates ( including cash and non - cash rebates ), returns, and allowances ; ( e ) discounts ( including trade, quantity, and cash discounts ), charge - backs, retroactive price reductions, refunds, returns, and billing errors ; ( f ) allowances and credits on account of governmental requirements, rejections, recalls, defects, or returns ; and ( g ) other similar or customary deductions taken in the ordinary course of business or in accordance with GAAP