definiens: means with respect to Royalty - Bea ring Product, the gross sales accrued in a particul ar period for financial reporting purposes of Royalty Bearing Products sold by [COMPANY] and/or its Affil iates and with respect to a Royalty Bearing Product licen sed to a Sublicensee, such Royalty Bearing Product sold by the Sublicensee, in each case to a Third Party and included in reported net sales after deducting for the following sales allowances and expenses directly related to g ross sales of the applicable Royalty Bearing Produc t, if not previously deducted, from the gross sales amount in voiced : ( a ) trade, quantity and/or cash discounts, allowanc es or rebates, including promotional, service or similar discounts or rebates and discounts or rebat es to governmental or managed care organizations, t o the extent actually given or allowed in connection with Royalty Bearing Product ; ( b ) credits or allowances actually granted with res pect to Royalty Bearing Products by reason of rejection, defects, recalls or returns, or chargeba cks ; 5 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATI ON ( I ) IS NOT MATERIAL AND ( II ) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED