definiens: shall mean the gro~ invoiced price for Licensed Products sold by AJcon, its Affiliates or a Marketing Partner ( the ) to independent, unaffiliated Third Parties and recognized in the acoounting records of tht : S ~ lling Party as sales, less the following deductions from such gross arnoWlts : ( i ) nonna ! and customary trade, cash and other quantity discounts amI aJlowances actually allowed and taken ; ( ii ) credits or allowances actually granted to the customer for damaged goods, returns . recalls, rebates or rejections of Licensed Produc1s ; ( iii ) sales ; use, excise or ad valorem taxes ( to the extent borne by Selling Party and separately stated on the invoice and included in the computation of gross sales ) . ( iv ) Third Party cash rebates and chargebaclcs related to -7 · sales of the Licensed Product, to the extent allowed and taken by such Third Party~ ( v ) freight, insurance and other transportation and handling tees to the exte.nt included in the invoice price ; ( vi ) retroactive price reductions that are actually allowed or granted to and taken by Third Parties ; ( vii ) compulsory payments and rebates directly related to the 3alC of Licensed Products, accrued, paid I or deducted pursuant to agreements ( including, but not limited to, ' managed care agreements ) or govemment regulations ; and ( viil ) any other specifically identifiable costs or charges included in the gross invoiced sales price of such Licensed Product substantially equivalent to those listed in clause & ( i ) -(vii ) above . Only items that are deducted from Selling Party 's gross sales of Licensed Product(s ), as included in Selling Party 's published financial statements and which arc in accordance with GAAPt shaH be deducted from such gross sales for purposes of the l : alculalioll ofNtl Sales . In the event that A1con or its Affiliates or : \1arketing Partner make any adjustment to such deductions after the associated Net Sales have been reported pursuant to this Agreement, the adjustments and payment of any royalties due shall be reported with the next quarterly report