definiens: . Net Sales means, with respect to a Royalty Bearing Product ( either a [COMPANY] Product or a 4DMT Product, as applicable ), the gross amount of sales of such Royalty Bearin g Product invoiced by a Party or its Affiliates to Third Parties, less the following to the extent related to such Royalty Bearing Product and incurred by such Party or its Affiliates and invoiced to the Third Party : - 8 - ( a ) sales returns a nd allowances actually paid, granted or accrued, including trade, quantity and cash discounts and any other adjustments, including those granted on account of price adjustments or billing errors ; ( b ) rejected goods, damaged or defective goods, reca lls, returns ; ( c ) rebates, chargeback rebates, compulsory rebates, reimbursements or similar payments granted or given to wholesalers or other distributors, buying groups or health care insurance carriers ; ( d ) non - collectable receivables ; ( e ) customs or excise duties, sales tax, consumption tax, value added tax, and other taxes ( except income taxes ) ; or ( f ) charges for packing, freight, shipping and insurance