definiens: means the gross amount billed or invoiced by or on behalf of Licensee, its Affiliates and Sublicensees ( in each case, the ) for Licensed Product as reduced by the followi ng deductions to the extent actually allowed or incurr ed with respect to such sales : ( a ) transportation c harges, and other shipping charges, such as insurance, ( b ) sale s, value - added and excise taxes, customs, duties, a nd any other governmental charges, to the extent imposed upon th e sale of the Licensed Product and paid by the sell ing party, provided that no income taxes shall be deducted fro m gross sales of Licensed Product to calculate Net Sales, ( c ) distributor fees, rebates or allowances actuall y granted, allowed or incurred, including but not l imited to government and managed care rebates, ( d ) quantity d iscounts, cash discounts or chargebacks actually gr anted, allowed or incurred, and ( e ) allowances or credits to customers or write offs of invoiced amounts, not in excess of the selling price of Licensed Product, on accoun t of governmental requirements, rejections, recalls, or returns