definiens: means the gross amount received by [COMPANY], its Affiliates, or any Permitted Sublicensees for salesof the Drug Product for use with Device in the Field in a country in the Territory during the Royalty Term, less thefollowing : ( i ) normal and customary trade, quantity and/or cash discounts, returns or credits ( pertaining to rejections, defects, or recalls of the Drug Product or because of rebates or retroactive price adjustments ), allowances, rebatesand charge - backs, to the extent actually incurred ; ( ii ) sales taxes, value - added taxes, excise or use taxes, tariffs, duties and customs fees and other taxes, duties or other governmental charges imposed with respect to sales of theDrug Product which are actually paid ; and ( iii ) freight, postage, shipping, insurance and other transportation expensesassociated with the Drug Product which are actually paid . All calculations shall be made in accordance with GAAP