definiens: shall mean the gross invoiced price for Licensed P roducts and Other Licensed Products sold by Alcon, its affi liates or permitted sublicensees ( the ) to third parties, less Qualifying Costs . shall mean the following deductions from such gross amounts : ( i ) normal and customary trade, cash and other quan tity discounts, rebates and allowances actually all owed and taken ; ( ii ) credits or allowances actually granted to the customer for damaged goods, returns, recalls, rebates or rejections of Licensed Products and Other Licensed Products ; ( iii ) sales, use, excise, ad valorem or a ny other sales - related taxes ( to the extent borne by Selling Party and separately stated on the invoice and inc luded in the computation of gross sales ) ; ( iv ) chargebacks relat ed to sales of Licensed Products and Other Licensed Products, to the extent actually allowed and taken by a third party ; ( v ) freight, insurance and other transporta tion and handling fees to the extent included in the invoice price ; and ( vi ) compulsory payments and rebates di rectly related to the sale of Licensed Products and Other Licensed Products, accrued, paid, or deducted pursu ant to federal or state government regulations . Generally, only items that are deducted from Selling Party ’s gross sales of Licensed Product(s ) and Other Licensed Product(s ), as included in Selling Party ’s published financi al - 3 - statements and that are in accordance with GAAP, ap plied on a consistent basis, shall be considered Qu alifying Costs and shall be deducted from such gross sales f or purposes of the calculation of Net Sales . Howeve r, compulsory payments required by federal or state go vernments based upon sales volume or market share o f Licensed Products ( but for clarity excluding taxes on the Selling Party ’s net income ), to the extent b orne by the Selling Party, shall be deducted from r egardless of its classification in the Selling Part y ’s published financial statements ; provided that any such deduct ion shall be limited to that share of such compulso ry payment proportional to the share of the total sales volume or market share of the Selling Party used to compu te the compulsory payment represented by applicable Net Sa les of Licensed Products ; and provided further that, Company shall include in each report provided to Pe nn pursuant to Section 4.1 for any Quarter in which such deduction is taken an explanation of how the share of such compulsory payment allocated to applicable Net Sales of Licensed Products was calculated . A Qualif ying Cost may be deducted only once regardless of t he number of categories that describe such amount . In the event that a Selling Party makes any adjustment to such deductions after the associated Net Sales have been reported pursuant to Section 4.1, the adjustments and payment of any royalties due shall be reported with the next quarterly report . Sales between or among Alcon, its affiliates and sublicensees shall be excluded from the computation of Net Sales if such sales are not intended for end use, but Net Sales shall include the subsequent final sales to third parties by Alcon or any such affiliates or sublicensees . A Licensed Product or Other Licensed Product shall not be deemed to be sold if it is pro vided free of charge to a third party in reasonable quantities as a sample consistent with industry standard prom otional and sample practices