definiens: means, with respect to a Collaboration Product, the amount invoiced by [COMPANY], its Affiliates or sublicensees for sales of such Collaboration Product to a Third Party ( ) less : ( i ) transportation charges, freight and insurance ( but only insurance related to protecting the particular shipment against physical loss or damage ) ; ( ii ) taxes ( other than taxes based on income ), tariffs, customs duty, excise or other duty and any other governmental charges, all to the extent imposed upon the sale, transportation or delivery of such Collaboration Product and paid by the seller ; ( iii ) Third Party distributor fees ; ( iv ) trade discounts, quantity discounts, cash discounts, rebates, reimbursements, cooperative advertising allowances, credits or chargebacks actually granted, allowed or incurred in the ordinary course of business in connection with the sale of such Collaboration Product, including any credits, volume rebates, charge - back and prime vendor rebates, fees, fees for services, reimbursements or similar payments granted or given to wholesalers and other distributors, buying groups, health care insurance carriers, pharmacy benefit management companies, health maintenance organizations or other institutions or health care organizations ; ( v ) adjustments, allowances or credits ( calculated on a per unit basis ) to customers, not in excess of the selling price per unit of such Collaboration Product, including without limitation on account of price adjustments, governmental requirements, billing errors, rejection, damage, recalls or return of such Collaboration Product ; ( vi ) payments or rebates paid in connection with sales of Collaboration Products to any governmental or regulatory authority in respect of any state or federal Medicare, Medicaid or similar programs ; ( vii ) royalties or technology access fees paid to a Third Party in respect of the sale of such Collaboration Product ; ( viii ) write - offs for bad debts incurred ( net of any bad debts later recovered ) ; and ( ix ) any item substantially similar in character / substance to the foregoing . Net Sales shall be accounted for in accordance with generally accepted accounting principles ( ) consistently applied in the jurisdiction in which the sales occur, it being understood that bad debt write - off shall be deducted in arriving at Net Sales notwithstanding that such treatment may be inconsistent with GAAP, and it being further understood that [COMPANY] shall make bad debt write - off decisions consistent with its usual business practices