definiens: . shall mean, with respect to the Product, the gross invoiced sales of the Product by the Royalty Payor and its Related Parties to Third Parties that are not Related Parties of the Royalty Payor, less the following deductions to the extent included in the gross invoiced sales price for the Product or otherwise directly paid or incurred by such Royalty Payor or its Related Parties with respect to the sale of the Product : ( a ) discounts, credits, retroactive price reductions, rebates, allowances and adjustments granted to Third Parties that are not Related Parties of the Royalty Payor, and rejections, recalls and returns, to the extent usual and customary in the pharmaceutical industry and consistent with the Royalty Payor 's usual course of dealing for its products other than the Product ; ( b ) trade, quantity, cash discounts and rebates allowed or given, to the extent usual and customary in the pharmaceutical industry and consistent with the Royalty Payor 's usual course of dealing for its products other than the Product ; ( c ) sales, excise, turnover, inventory, value - added, and similar taxes assessed on the sale of the Product ( other than income taxes of such Royalty Payor or its Related Parties ), and import and customs duties ; and ( d ) transportation, importation, shipping insurance and other handling expenses