definiens: means the gross amount invoiced by Company and its Affiliates to independent third parties for thesale, transfer, or other disposition of IVD Test Kits in the Territory, less the following items as applicable to such IVDTest Kits to the extent actually taken or incurred with respect to such sale and all in accordance with standardallocation procedures, allowance methodologies and accounting methods consistently applied, in accordance withGAAP ( except as otherwise provided below):(a ) credits or allowances for returns, rejections, recalls, or billing corrections;(b ) separately itemized invoiced freight, postage, shipping and insurance, handling and other transportationcosts;(c ) sales, use, value added, medical device and other taxes ( excluding income taxes ), tariffs, customsduties, surcharges and other governmental charges levied on the production, sale, transportation, delivery or useof the IVD Test Kits in the Territory that are incurred at time of sale or are directly related to the sale;(d ) any quantity, cash or other trade discounts, rebates, returns, refunds, charge backs, fees, credits orallowances, retroactive price reductions and billing corrections ; and 3(e ) written - off bad debt not to exceed 4 % of the cumulative amounts invoiced, net of ( a ) – ( c ), for thepertinent Period ( defined in Section 7.01 )