definiens: means the amount invoiced by THRESHOLD, its Affil iates or Sub- Licensees to Customers for sales of Licensed Product in the Territory less deductions for the following : ( i ) cash, trade, qua ntity and volume credits, allowances, discounts and bad d ebt ( any deduction for bad debt shall be not more than one percent ( 1 % ) of sales of Licensed Product, and any allowances for amounts written off as bad debt shall be included in Net Sales if later paid ) ; ( ii ) rebates such as price reductions, rebates to social and welfare systems, charge - back s, government mandated rebates and similar rebates ; ( iii ) excise, sales, use, value added, and all other similar taxes and t ariffs and all other similar import / export duties ; ( iv ) invoiced outbound freight and other transportation charges and shipping insurance if any ; and ( v ) allowances or credits for rejections, withdrawals, recalls, and returns . For the avoidance of doubt, t he computation of Net Sales shall not include amounts received by THRESHOLD, its Affiliates or Sub - Licensees for the sale of License d Product among THRESHOLD, its Affiliates and Sub -Licensees