definiens: shall mean the gross amounts invoiced by Company and/or its Affiliates ( butnot by Sublicensees or Partners ) on all sales of Company Products, less the following items, as applicable to such CompanyProducts : ( a ) discounts, rebates and retroactive price reductions actually allowed or granted ; ( b ) credits or allowances actually granted upon claims regarding non - conforming product, rejections or returns of such sales of Company Products, including recalls ; ( c ) transportation charges, including handling charges and insurance premium relatingthereto ; ( d ) government - mandated and other rebates ( such as those in respect of any state or federalMedicare, Medicaid or similar programs ) ; ( e ) charge backs, including those granted to managed care entities ; ( f ) sales, use, excise, value added or other direct taxes imposed on the sale of CompanyProducts ( but excluding what are commonly known as income or gross receipt taxes ), and customs duties, tariffs and othersimilar governmental charges imposed on the import or export of Company Products for sale ; provided, however, in each of the cases identified in sub - clauses ( a ) — ( f ) above, that ( 1 ) such deducted amounts are either(i ) included as line items in the invoice, or ( ii ) otherwise documented as being specifically attributable to actual sales ofCompany Products in accordance with U.S. Generally Accepted Accounting Standards ( ) or International FinancingReporting Standards ( ), as applicable, consistently applied throughout the organization of the selling party, and suchamounts are included in the quarterly statements that Company sends to TSRI pursuant to Section 6.3 ; and ( 2 ) if the sellingparty receives refunds or reimbursements of any amounts deducted as set forth herein, then such refunded or reimbursedamounts shall be considered Net Sales in the applicable reporting period in which such refunded or reimbursed amounts arereceived ; and ( g ) a reasonable allowance for bad debts directly relating to sales of Company Products andwhich have been written off as bad debts by the selling party, taken in accordance with GAAP or IFRS, as applicable, consistently applied throughout the organization of the selling party, provided that such allowance shall not exceed * * * ofgross invoiced amounts for the applicable reporting period . Company agrees to use, and to cause its Affiliates to use, Commercially Reasonable Efforts to collect and enforce such bad debts from the debtors