definiens: means Gross Sales, less the followi ng deductions to the extent paid or actually incurred or taken with respect to such Gross Sales : ( a ) discounts on sales of the Product, including cash and quantity discounts and other price adjustments, promotional and other similar allowances, mandatory administration fees or such administration fees that are granted as an effective discount, charge - back payments and rebates actually granted to trade cust omers, managed health care organizations, federal, state, or local government and the agencies, purchasers and reimbursers of managed health organizations or fe deral, state or local government ; ( b ) amounts repaid or credited by reason of claims for damaged goods, rejections or returns of the Product ; ( c ) freight, postage, handling, shipping, transpor tation and insurance charges actually allowed or paid for delivery of the Product, to the ex tent invoiced and included in Gross Sales ; ( d ) taxes ( other than income taxes ), duties, tari ffs or other governmental charges levied on the sale of the Product to the extent invoiced and included in Gross Sales, excluding any withholding taxes ; and ( e ) amounts invoiced that prove to be uncollectable and, therefore, must be written off, provided that, in no event will amounts de ducted during a calendar year exceed two percent ( 2 % ) of Gross Sales during such pe riod and any amounts subsequently recovered and collected in respect of the Product will be included as part of Net Sales ; in each case as determined in accordance with Galen ’s usual and customary accounting methods consistently applied, which methods sh all be in accordance w ith IFRS