definiens: means, with respect to Co - Funded Products Directed to a Collaboration Target for which Avalanchehas exercised its Co - Funding Right, Net Sales made by [COMPANY] or its Affiliates [ * * * ] to Third Parties, plus [ * * * ], less ( i ) [ * * * ] . Net Profits shall be calculated Quarterly . For the avoidance of doubt, if the number obtained pursuant tothe equation above is negative, the resulting number shall be deemed a means the gross amount invoiced for bona fide arms - length sales of any Product in the Field for usein the Territory by or on behalf of [COMPANY] or its Affiliates or Sublicensees to Third Parties, less the followingdeductions determined in accordance with [COMPANY] ’s standard methods as generally and consistently applied byRegeneron:(a ) normal and customary trade, cash and/or quantity discounts allowed and taken with respect to Product sales;(b ) amounts refunded or credited for damages, expiry, defects, rejections, recalls, returns and allowances inrespect of the Products ; 11 [ * * * ] Certain information in this document has been omitted and filed separately with the Securities and ExchangeCommission . Confidential treatment has been requested with respect to the omitted portions.(c ) distribution - related fees and other charges or fees directly related to handling and distribution of a Product;(d ) chargebacks and other amounts paid on sale or dispensing of such Product;(e ) Third Party cash rebates and chargebacks related to sales of the Product, to the extent allowed;(f ) retroactive price reductions of such Product that are actually allowed or granted;(g ) compulsory payments and rebates directly related to Product sales, accrued, paid or deducted pursuant toagreements with government entities or payors ( including managed care agreements ) or government regulations(including the branded prescription drug fee imposed by the Internal Revenue Service);(h ) freight, insurance and other transportation charges, to the extent included in the invoice price;(i ) tariffs, duties, excise, value - added, consumption or other taxes ( other than taxes based on income ), to theextent included in the invoice price;(j ) [ * * * ] in the [ * * * ] of such [ * * * ] ; ( k ) [ * * * ] ; and(l ) [ * * * ] to the [ * * * ]