definiens: shall mean in the case of Product sold by [COMPANY] or an Affiliate or a permitted sub - licensee, that sum determined by deducting from the aggregate gross In Market sales proceeds billed for the Product by [COMPANY] or, its Affiliate or a permitted sub - licensee, as the c ase may be, in accordance with generally accepted accounting princ iples : ( i ) customs duties or other taxes ( excluding income or corporation tax ), directly related to the sale of the Product which a re paid by [COMPANY] or its Affiliate or permitted sub - licensees as the case ma y be ; ( ii ) a discount from the gross sales proceeds to co ver such normal costs as are incurred by [COMPANY] or its Affiliates or permitted sub - licensees, as the case may be, in respect of ( A ) returns, rebates ( in cluding Medicaid rebates ), cash discounts ( including discounts attri butable to lowered prices due to the introduction of less expensive co mpetitive products ), advertising costs that are mutually agreed to by th e Marketing Committee, and allowances offered to, and actually taken by, t hird parties in the ordinary course of business, ( B ) applicable freight and shipping costs, and ( C ) applicable insurance costs, in each case direct ly related to the sale of the Product . shall mean a C ompound nominated pursuant to Clause 3.2