definiens: means the total amount billed or invoiced in United States dollars ( or converted thereto in accordance withthe Agreement ) on sales of the Licensed Product by Licensee, its Affiliates, sublicensees and/or Affiliates of sublicensees inthe Territory to Third Parties, less the following deductions ( i ) trade, cash and quantity discounts actually taken on suchLicensed Product ; ( ii ) taxes on sales ( such as sales or use taxes ) to the extent added to the sale price and set forth separately assuch in the total amount invoiced ; ( iii ) freight, insurance and other transportation charges to the extent added to the sale priceand set forth separately as such in the total amount invoiced ; and ( iv ) reserves for amounts to be repaid or credited by reasonof rejections, defects, recalls or returns or because of retroactive price reductions, chargebacks, rebates or commissions, madein accordance with generally accepted accounting principles and Licensee ’s accounting policies . Sales between Licensee andits Affiliates and sublicensees shall not be treated as Net Sales hereunder