definiens: means the gross amount invoiced by Company and its Affiliates to independent third parties for the sale, transfer, or other dispositio n of IVD Test Kits or license of the Custom Softwar e in the Territory, less the following items as applicable t o such IVD Test Kits or Custom Software to the exte nt actually taken or incurred with respect to such sale and all in accordance with standard allocation procedures, allowance methodologies and accounting methods consistently a pplied, in accordance with GAAP ( except as otherwis e provided below ): ( a)credits or allowances for returns, rejections, r ecalls, or billing corrections ; ( b)separately itemized invoiced freight, postage, s hipping and insurance, handling and other transportation costs ; ( c)sales, use, value added, medical device and othe r taxes ( excluding income taxes ), tariffs, customs duties, surcharges and other gover nmental charges levied on the production, sale, transportation, delivery or use of the IVD Test Kit s or Custom Software in the Territory that are incurred at time of sale or are directly related to the sale ; ( d)any quantity, cash or other trade discounts, reb ates, returns, refunds, charge backs, fees, credits or allowances, retroactive price reductions and billing corrections ; and ( e)written - off bad debt not to exceed 4 % of the cum ulative amounts invoiced, net of ( a ) – ( c ), for the pertinent Period ( defined in Section 7 .01 )