definiens: : shall mean invoiced sales by GHI, GHI Affiliates or sublicensees on all sales of Product ( in final form for end use ) to an unaffiliated third party ( whether an end - user, a distributor or otherwise ), and exclusive of intercompany transfers or sales, less the following deductions from such invoiced sales which are actually incurred, to the extent that they me reasonable and customary, and to the extent that they do not exceed tu : l ; percent ( 2,% ) of invoiced sales in a calendar quarter : ( a ) credits or allowances actually granted for damaged Products, returns or rejections of Product and retroactive price reductions ; ( b ) freight, postage, shipping, customs duties and insurance charges ; ( c ) normal and customar y trade, cash and quantity discounts, allowances and credits ; ( d ) uncollected mnollnts to the extent not exceeding .!l!l.l < percent Cl % ) of invoiced sales for a calendar quarter ; and ( e ) sales, value added or similar taxes measured by the billing amount, when included in billing