definiens: means the gross invoiced sales of Product in the Field in the Territory by [COMPANY], its Affiliates or any of itssublicensees to Third Parties on an arms - length basis less any of the following charges or expenses that are incurred inconnection with such gross sales : 1.77.1 * * * relating to Product, including * * * and * * * 1.77.2 and * * * paid by * * *, its Affiliates or sublicensees in relation to Product and any other equivalent governmentalcharges imposed upon the * * *, * * * or * * * of Product ; 1.77.3 government - mandated and other rebates ( such as those in respect of any state or federal Medicare, Medicaid orsimilar programs);7 1.77.4 customary trade, quantity and cash discounts allowed on Product ; 1.77.5 * * * or * * * to * * * on account of * * * Product ; 1.77.6 customary Product rebates and Product charge backs * * * to * * * ; and 1.77.7 the lesser of ( i ) * * * percent ( 2 % ) of the * * * amount billed or invoiced on sales of Product or ( ii ) the actualamount of any write - offs for bad debt relating to such sales of Product