definiens: means the total gross sales ( number of units shipp ed times the invoice price per unit ) of all Licensed Products by PII, its Affiliates, sublicens ees ( including sublicensees of any sublicensee ), Af filiates of sublicensees and/or a Third Party Partner in the Te rritory to Third Parties, less the following deduct ions to the extent actually paid or allowed : ( i ) quantity disco unts, cash discounts or chargebacks actually grante d, allowed or incurred in the ordinary course of business in conn ection with the sale of Licensed Product ; ( ii ) sale s and excise taxes, customs and any other taxes, all to the exte nt added to the sale price and paid by the selling party and not refundable in accordance with applicable law ( but n ot including taxes assessed against the income deri ved from such sale ) ; ( iii ) freight, insurance and other tran sportation charges to the extent added to the sale price and set forth separately as such in the total amount invoic ed ; ( iv ) reserves for amounts to be repaid or credi ted by reason of rejections, defects, recalls or returns or becau se of retroactive price reductions, chargebacks, re bates or commissions ; ( v ) rebates or allowances actually gra nted or allowed to group purchasing organizations, managed health care organizations and to governments, inclu ding their agencies, or to trade customers, in each case that are not Affiliates, sublicensees or a Third Party P artner of PII ; and ( vi ) allowances or credits 5 to customers, not in excess of the selling price of Licensed Product, on account of governmental requi rements, rejection, outdating recalls or return of the Licen sed Product, made in accordance with GAAP and PII ’s accounting policies . Sales between PII and its Affi liates, sublicensees and a Third Party Partner of P II shall not be treated as Net Sales hereunder . The calculation of Net Sales shall be made in accordance with GAAP and [COMPANY] ’s accounting policies