definiens: means the amount invoiced ( or in t he absence of an invoice, received ) by COMPANY, its AFFILIATES or its SUBLICENSEES for the sale to THIRD PARTIES of SELECTED PRODUCT less the following, to the extent included in the amount invoiced : ( i ) customary trade, cash and quantity credits, dis counts, refunds or rebates actually allowed and taken ; ( ii ) allowances actually given for the retur ned SELECTED PRODUCT, retroactive price reductions and chargebacks ; ( iii ) packaging, handli ng fees, freight and insurance, if separately identified on the invoice ; ( iv ) government - mandated and other rebates ; ( v ) value added tax, sales, use or turnover taxes, excise taxes and customs duties included -6- in the invoiced price ; and ( vi ) amounts reserved in accordance with generally accepted accounting principles for uncollectible accounts, provided tha t such amounts shall not exceed one percent ( 1 % ) of the aggregate gross amount invoiced on acco unt of sales of SELECTED PRODUCT by COMPANY, its AFFILIATES or SUBLICENSEES to THIRD PA RTIES during the relevant calendar quarter in respect of which royalties are being calculated . NET SALES shall be deemed to accrue upon the date of the invoice for SELECTED PR ODUCT . In addition, NET SALES by COMPANY or its AFFILIATES or SUBLICENSEES hereunder are subject to the following : ( a ) In the case of pharmacy incentive programs, hos pital performance incentive program charge backs, disease management programs, similar pro grams or discounts on of products, all discounts and the like shall be allocated among products on the basis on which such discounts and the like were accrued, or if such bas is can not be determined, proportionately to the list prices of such prod ucts ; ( b ) In the case of any sale or other disposal of SE LECTED PRODUCT by COMPANY to an AFFILIATE, for resale, the NET SALES shall be calcu lated as above on the amount received or invoiced on the first arm ’s length sale to a THI RD PARTY ; ( c ) In the event of a sublicense as to SELECTED PRO DUCT, NET SALES will be calculated with respect to sales of SELECTED PRODUCT by the SU BLICENSEE to a THIRD PARTY ( and not with respect to sales of SELECTED PRODUCT by COMPANY to the SUBLICENSEE ) ; and ( d ) If COMPANY or its AFFILIATES or SUBLICENSEES ma ke a sale or other disposal of SELECTED PRODUCT to a customer in a particular coun try other than on normal commercial terms or as part of a package of product s and services, or if COMPANY or its AFFILIATES or SUBLICENSEES make a sale of SELECTED PRODUCT at a p rice less than would have been obtained in an arm ’s length transac tion, the NET SALES of SELECTED PRODUCT shall be deemed to be of SELECTED PRODUCT ( i.e., the value that would have been derived had SELECTED PRO DUCT been sold as a separate product to a similar customer in the country concer ned on normal commercial terms )