definiens: means with respect to any Lice nsed Product, the gross amount invoiced by [COMPANY], any of its Affiliates or any Sublicensee ( other tha n a Settlement Sublicensee ) ( each, a ) to a Third Party ( including a customer, Distributor, wholesale r or end user ) for sales or distribution of such Li censed Product, less the following deductions, as calculated in acc ordance with the standard internal policies and pro cedures of the applicable Selling Party and in accordance with Acc ounting Standards applicable to the deductions : 1.87.1 normal trade, cash, quantity and other cust omary discounts actually given to customers in the ordinary course of business ; 1.87.2 rebates, credits and allowances given by re ason of rejections, returns, damaged or defective product or recalls ; 1.87.3 government - mandated rebates and any other c ompulsory payments, credits, adjustments and rebates actually paid or deducted ; 1.87.4 price adjustments, allowances, credits, cha rgeback payments, discounts, rebates, fees and reimbursements or similar payments granted or made to managed care organizations, group purchasing organizations or other buying groups, pharmacy bene fit management companies, health maintenance organi zations and any other providers of health insurance coverag e, health care organizations or other health care i nstitutions ( including hospitals ), health care administrators, patient assistance or other similar programs, or to federal state / provincial, local and other governments, incl uding their agencies, or to wholesalers, Distributo rs or other trade customers ; 1.87.5 the portion of administrative fees paid or otherwise accrued during the relevant time period to group purchasing organizations, pharmaceu tical benefit managers or Medicare Prescription Dru g Plans to the extent allocated to such Licensed Product ; 1.87.6 the price paid to a Third Party ( other than a Sublicensee or Distributor ) for any Delivery System, if the price for such Delivery System is in cluded in the gross amount invoiced by such Selling Party for such Licensed Product, where for purposes of this c lause, a means any delivery syste m comprising equipment, instrumentation, one ( 1 ) 15 or more devices, or other mechanical components ( su ch as a syringe or infusion bag ) designed to assist in the administration of such Licensed Product ; 1.87.7 any invoiced amounts from a prior period th at are not collected and are written off by the applicable Selling Party, including bad debts, prov ided that such amounts are recorded as a reduction in revenue and provided, however, that the amount of any uncol lected amounts or bad debt deducted pursuant to thi s exception and actually collected in a subsequent Calendar Qua rter shall be included in Net Sales for such subseq uent Calendar Quarter ; 1.87.8 that portion of the annual fee on prescript ion drug manufacturers imposed by the Patient Protection and Affordable Care Act, Pub . L. No . 111 -148 ( as amended ), to the extent reasonably allocab le to sales of such Licensed Product ; 1.87.9 reasonable and customary freight, shipping, insurance and other transportation expenses, if actually borne by the applicable Selling Party w ithout reimbursement from any Third Party ; 1.87.10 sales, value - added, excise taxes, tariffs a nd duties, and other taxes and government charges directly related to the sale, delivery or u se of such Licensed Product ( but not including taxe s assessed against the net income derived from such sale ) ; and 1.87.11 any other similar and customary deductions that are consistent with Accounting Standards, but which may not be duplicative of the above deductions