definiens: means the dollar amount determined by deducting from the grossamount invoiced for the Product sold by [COMPANY], or by an Affiliate of [COMPANY], or by a permitted sub - licensee, as the case may be, in the Territory the following to the extent they relate directly to thesale of the Products by [COMPANY] : ( i ) all applicable sales credits accrued in accordance with accountingprinciples generally accepted in the United States, ( ii ) payments or rebates incurred pursuant tofederal, state and local government assistance programs, whether in existence now or enacted atany time hereafter, ( iii ) costs for transit insurance, freight, handling or other transportation, ( iv)customs duty, sales, use or excise taxes, and ( v ) the write - off of any bad debt . Sales creditsaccrued in accordance with accounting principles generally accepted in the United States includecredits or discounts related to the following : ( i ) customer returns, returned goods allowances, billing and shipping errors, rejected goods and damaged goods, ( ii ) cash or terms discounts, ( iii)customer rebate programs, ( iv ) chargebacksand administration fees Or similar credits orpayments granted to customers pursuant to contract or other purchases, ( v)sales promotions, trade show discounts and stocking allowances, ( vi ) price adjustments, including those oncustomer inventories following price changes, and ( vii ) Product recall