definiens: means the gross amount invoiced by or on behalf o f Knight, its Affiliates and their respective sublicensees for sales of any Lice nsed Product in the Territory ( other than sales amo ng Knight, its Affiliates or sublicensees for subseque nt resale in which case the first sale to a Third P arty that is not a sublicensee shall be used for calcula tion of Net Sales ), less the following deductions i f and to the extent they are ( a ) included in the gross in voiced sales price of the Licensed Product or other wise directly incurred by Knight, its Affiliates and the ir respective sublicensees with respect to the sale of the Licensed Product, ( b ) normal and customary, and ( c ) not otherwise deducted in computing other amounts hereunder : ( i ) rebates, quantity and cash d iscounts, and other discounts to customers, ( ii ) ta xes ( except income taxes ) and tariffs or duties paid, a bsorbed or allowed which are directly related to th e sale of the Licensed Product, ( iii ) credits, allowa nces, discounts and rebates to, and chargebacks for, spoiled, damaged, outdated, rejected or returned Li censed Product ( including in connection with Licensed Product withdrawals, expired Licensed Prod uct and Licensed Product recalls ), ( iv ) actual freight and insurance costs, including without limi tation the costs of export licenses, shipping, post age and handling charges, incurred in transporting the Licensed Product to customers, ( v ) discounts or rebates or other payments required by Applicable La ws in the Territory, including any governmental special medical assistance programs, ( vi ) customs d uties, surcharges and other governmental charges incurred in connection with the exportation or impo rtation of the Licensed Product, and ( vii ) bad debt s actually written off in connection with such Licens ed Products . Subsections ( i ) through ( vii ) shall be collectively referred to as . The following principles shall apply in the calc ulation of Net Sales : ( 1 ) In the case of any sale of Licensed Product whi ch is not invoiced or is delivered before invoice, Net Sales shall be calculated at the time of shipment or when the Licensed Product is paid fo r, if paid for before shipment or invoice