definiens: Net Sales ” means, with respect to any period, the gross amount billed or invoiced on sales of the Licensed Product during such period anywhere in the Territory by Licensee or any of its Affilia tes or sublicensees or assignees ( or permitted distribu tors ) to unaffiliated Third Parties in bona fide ar m ’s length transactions, less the following deductions, in each case to the extent reasonable and customar ily provided to unaffiliated entities and actually allo we d and taken with respect to such sales : i. actual credits, price adjustments or allowances for damaged products, returns or rejections of the Licensed Product in accordance with Licensee ’s returned goods policy ; ii . normal and customary trade, cash and quantity d iscounts, allowances and credits ( other than price discounts granted at the time of invoici ng which have already been included in the gross amount invoiced ) ; iii . chargeback payments, repayments and rebates ( o r the equivalent thereof ) granted to or imposed by group purchasing organizations, managed health care organizations or federal, state / provincial, local and other governments, incl uding any or all of their regulatory authorities, agencies, review boards or tribunals, or trade customers ; iv . sales, value - added ( to the extent not refundabl e in accordance with applicable law ), and excise taxes, tariffs and duties, and other taxes d irectly related to the sale ( but not including taxes assessed against the income derived from such sale ) ; v. outbound freight, shipment and insurance costs i ncurred by Licensee to sell the Licensed Product to the extent included in the price and sep arately itemized ; vi