definiens: means ( A ) with respect to sales by EBI, or an Affiliate of EBI, to non - affiliated third party purchasers, including non - affiliated distributors, the actual amount of gross sales of Licensed Product to a third party, less : ( i ) trade, cash and quantity discounts granted at the time invoiced, if any, actually allowed, ( ii ) amounts refunded, allowed or credited for faulty or defective product, .returns, rebates, or rejections, ( iii ) freight, insurance and other transportation costs ( except income taxes ), tariffs, duties and similar governmental charges paid, to the extent included in gross sales price, and ( iv ) adjustments for bad debt ; ( B ) with respect to Licensed Product which are used by EBI, or an Affiliate of EBl, to supply services or information to a third party for commercial purposes, or are otherwise disposed of, the Net Sales will be determined as if such Licensed Product had been sold at the average Net Sales for such Licensed Product during the past 120 days prior to the supply of such services or information