definiens: means, with respect to a Genotropin Product or a Licensed Product, gross amounts invoiced for sales by [COMPANY] and its Affiliates and sublicensees of such Genotropin Product or License d Product to Third Parties in the Territory, less in each case ( i ) bad debts and uncollectable invoiced amounts rel ating to sales of Licensed Product that are actually written off 9 CERTAIN IDENTIFIED INFORMATION HAS BEEN OMITTED FRO M THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETI TIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED . OMISSIONS ARE IDE NTIFIED AS [ * * * ] in accordance with GAAP, consistently applied throu ghout [COMPANY] and its Affiliates, provided that any such amounts shall be capped at up to * * * of Net Sales p er [COMPANY] Year and any subsequently collected amoun ts will be included in the current Net Sales or Gross Profit c alculation, as the case may be, ( ii ) sales returns and allowances actually paid, granted or accrued, including trade, quantity and cash discounts and other adjustments, including those granted on account of price adjustments, retu rns, rebates, chargebacks or similar payments grant ed or given to wholesalers or other institutions, ( iii ) adjustm ents arising from consumer discount programs or oth er similar programs, ( iv ) customs or excise duties, valued - add ed taxes, sales taxes, consumption taxes and other taxes ( except income taxes ) or duties relating to sales, any paym ent in respect of sales to the United States govern ment, any state government or any foreign government, or to any oth er governmental authority, or with respect to any g overnment - subsidized program or managed care organization, ea ch to the extent not already reflected in the amoun t invoiced, and ( v ) freight and insurance for the Licensed Prod uct to the extent included in the amount invoiced . Net Sales shall be calculated by [COMPANY] using a method of val ue allocation consistent with the method used with [COMPANY] ’s other collaborations . Net Sales shall be determined from books and records maintained in accordance with the Accounting Standards, as consistently applied by Pf izer with respect to sales of the Genotropin Produc t or Licensed Product . 1.113