definiens: shall mean the amount calculated by subtracting from the amount of Adjusted Gross Sales ( as defined below ) [ * * * ] in lieu of those sales - related deductions which are not accounted for by GlycArt, its Affiliates and GlycArt sublicensees on a Therap eutic Product - by - Therapeutic Product basis ( e.g. outward freights, postage charges, transportation insurance, packaging materials for dispatch of goods, custom d uties, bad debt expense ) ; For purposes of this definition of, shall mean the amount of gross sales of the Therapeutic Product invoiced by GlycAr t, its Affiliates and GlycArt sublicensees to Third Parties less deductions such as : ( a ) Governmental price reductions and changes to re serves of governmental price reductions, such as rebates to managed care organizations or social and welfare systems, charge backs or reserves for char gebacks, cash sales incentives ( but only to the extent it is a sales related deduction which is accounted for w ithin Licensee on a product - by - product basis ), government mandated rebates and similar types of rebates ( e.g., Pharma ceutical Price Regulation Scheme, Medicaid, clawback schemes and any other such scheme ) ( b ) Contract pricing chargebacks and changes to res erves of contract pricing chargebacks, such as periodic charges of wholesalers and chargebacks for price capping programs ( c ) Customer rebates and changes to reserves of cus tomer rebates, such as volume ( quantity ) discounts or price discounts ( d ) Returns and return reserves, such as in cases f or spoiled, damaged, out - dated, rejected, returned Licensed Product sold, withdrawals and recalls, cov ering both resellable products and goods which have to be destroyed ( e ) Cash discounts 10 ( f ) Taxes, such as value added or sales taxes, gove rnment mandated exceptional taxes and other taxes directly linked to the gross sales amount but not linked to profits For the avoidance of doubt, the on a Therapeutic Product - by - Therapeutic Product basis, means the same methodology as GlycArt consistently uses to recognize sales in its financial reporting, which is in accordance with the then used International Fina ncial Reporting Standards ( IFRS ), and is reviewed a nd approved by GlycArt ’s external auditors