definiens: means the gross amounts invoiced by LICENSEE or its Affiliates for sales of Licensed Product or API, as the case may be, to Third Parties in the Territory less the following deductions to the extent that such deductions ( a ) are not reimbursed, refunded, credited, or offset, either in cash or in kind, ( b ) are determined in accordance with GAAP, ( c ) have not already been deducted from the amount invoiced, and ( d ) except with respect to ( vi ) below, are amounts actually paid, allowed or granted : ( i ) volume or quantity discounts ; ( ii ) sales, excise, turnover, value added taxes ( VAT ), and other taxes related to sale of Licensed Product or API, as the case may be, ( iii ) credits or allowances for damaged Licensed Product or API, as the case may be, returns or rejections of Licensed Product or API, as the case may be, price adjustments, and billing errors ; ( iv ) any write - offs for bad debt directly relating to sales of Licensed Product or API, as the case may be ; ( v ) transportation and insurance charges ; and ( vi ) for sales of Licensed Product comprising finished pharmaceutical products only, up to three percent ( 3 % ) as a contribution towards selling, administrative and other similar expenses of LICENSEE or its Affiliates