definiens: means the dollar amount determined by deducting from the gross invoiced sales price billed for the Product sold by Par, or by an Affiliate of Par, or by a permitted sub - licensee, as the case may be, in the Territory to Third Parties in arms length transactions, the following : ( i ) all applicable sales credits accrued in accordance with accounting principles generally accepted in the United States, ( ii ) payments or rebates incurred pursuant to federal, state and local government assistance programs, whether in existence now or enacted at any time hereafter, ( iii ) costs for transit insurance, freight, handling or other transportation, ( iv ) customs duty, sales, use or excise taxes and ( v ) the write - offofbad debt not to exceed one percent ( 1 % ) of Net Sales . Sales credits accrued in accordance with accounting principles generally accepted in the United States can include credits or discounts related to the following : ( i ) customer returns, returned goods allowances including those made as part of a recall, billing and shipping errors, rejected goods and damaged goods ( ii ) cash or terms discounts ( iii ) customer rebate programs ( iv ) chargebacks and administration fees or similar credits or payments granted to customers pursuant to contract or other purchases ( v ) sales promotions, trade show discounts and stocking allowances and ( vi ) price adjustments, including those on customer inventories following price changes