definiens: shall mean the amount remaining after deducting from Adjusted Gross Sales an amount equal to E percent ( 60j of Adjusted Gross Sales ~ As used herein, the term shall mean the gross amount invoiced for sales of Target Products to Third Parties in the Territory by a Party, its Affiliates and their respective sublicensees to Third Parties that are not Affiliates or sublicensees of the selling party, less the following items, as allocable to such Target Product ( if not previously deducted from the amount invoiced ): ( a ) volume ( quantity ) discounts ; 4 [ * * * J Confidential Treatment Requested ( b ) returns and return reserves ( including allowances actually given for spoiled, damaged, out - dated, rejected, returned Target Product, withdrawals and recalls ; ( c ) taxes, duties or other governmental tariffs, including value added or sales taxes, government mandated exceptional taxes and other taxes directly linked to the gross sales amount ( other than income taxes ) ; and ( d ) rebates ( including price reductions, rebates to social and welfare systems, charge backs or reserves for chargebacks, cash rebate incentives, government mandated rebates and similar types of rebates, for example P.P.R.S, Medicaid )