definiens: means the gross amount invoiced in transactions by [COMPANY], its Affiliates and Sublicensees forthe sale or distribution of Products to Third Parties ( which shall include Distributors ), less : ( a ) customary discounts,(b ) amounts repaid or credited because of rejections, returns and recalls, ( c ) rebates or bona fide price reductions, ( d ) rebatesand similar payments made with respect to sales paid for by any governmental or regulatory authority, ( e ) invoiced amountswritten off as bad debt in accordance with GAAP, ( f ) taxes and duties ( excluding income or franchise taxes of any kind ) and(g ) three ( 3 ) percent of the gross invoiced 6LICENSE AGREEMENT amount for insurance and transportation costs, special packaging and related charges, such amount to be calculated after theapplication of the reductions described in the foregoing clauses ( a ) through ( f ) . Net Sales shall be calculated usingAstraZeneca ’s internal audited system used to report such sales as adjusted for any of items ( a ) to ( g ) above not taken intoaccount in such systems