definiens: shall mean the total amount invoiced to Third Par ties in connection with sales of the Product by [COMPANY], its Affiliates, its distributors and its Sublicensees to Third - Party purchasers, less t he following items to the extent actually paid or allowed and sp ecified on any documents related to such sales : 1.20.1 An allowance for transportation costs, distribution expenses, special packaging and relate d insurance charges equal to * percent ( * % ) of the invoiced amo unt obtained after deduction of the items set forth in the following subsections 1.20.2 - 1.20.6 ; 1.20.2 Credit or refund actually allowed for a ny returned Product ; 1.20.3 Reasonable and customary rebates, actua lly granted or given to wholesalers, distributors o r end - users of the Product ; 1.20.4 Sales or value added taxes actually inc urred and paid by [COMPANY], its Affiliates or Sub licensees in connection with the sale or delivery of the Product ; 1.20.5 Invoiced amounts not actually collected by [COMPANY], its Affiliates or Sublicensees, inc luding bad debts ; and 1.20.6 Any other similar and customary deducti ons made by [COMPANY], its Affiliates or Sublicens ees that are consistent with generally accepted accounting princ iples ( ) or standards