definiens: shall mean the aggregate gross sales of the amounts invoiced for the sale of XR Products and IRProducts by [COMPANY] or any of its Affiliates in arm ’s length transactions with Third Parties ( ) for usein the Territory, less reasonable estimates for the following : ( i ) cash discounts ( ii ) adjustments on account ofprice adjustments, billing adjustments, or shelf stock adjustments ( iii ) returns, shortages or rejected / damagedgoods ( iv ) chargebacks ( v ) rebates, promotional allowances, administrative fee arrangements, and similarpayments to all direct and indirect customers, including wholesalers and other distributors, buying groups, health care insurance carriers, pharmacy benefit management companies, health maintenance organizations, Medicaid or Medicare or similar type programs . In the event that [COMPANY] sells XR Product or IR Product as partof a bundle or group sale with other products not covered by this Agreement, and [COMPANY] provides a discount, allowance or rebate to the purchaser of such XR Product or IR Product based on the invoiced prices for allproducts sold, such discount must be allocated pro rata based on the selling prices of all such products . NetSales shall be determined using the accrual method of accounting determined in a 4LICENSE AGREEMENT manner consistent with [COMPANY] ’s practice for its other pharmaceutical products . Sales of Product(s ) by andbetween [COMPANY] and its Affiliates are not sales to Third Parties and shall be excluded from Net Sales calculationsfor all purposes, it being understood that the sale of a Product by [COMPANY] or any of its Affiliates to a Third Partyshall be utilized in calculating Net Sales under this Agreement