definiens: means the invoice amounts actually received for sales of the Product by CYTO, its Affiliates or sub - licensees in a bona fide arm 's length transaction, less the following items, provided that they are bona fide transactions designed to optimize the sales of Product ( a ) cash discounts and trade allowances actually granted, ( b ) rebates and charge backs required by Applicable Laws or made pursuant to agreements with customers, ( c ) credits or allowances actually granted upon claims, damaged goods, outdated goods, rejections or returns of such Product, including recalls, ( d ) taxes, tariffs and similar obligations, duties or other governmental charges ( other than income taxes and inventory taxes ) levied on, absorbed or otherwise imposed on sales of such Product in the Territory and shown separately on the invoice, ( e ) shipping charges, ( 0 insurance costs related to shipping, and the mandator y insurance associated for the drug sales, if the total insurance cost is limited to $ 50,000 annually, and ( g ) the costs associated with bidding on government auction for sales quotas, if the bidding costs are limited to $ 800 the first year per providence or special district and to $ 400 per year for subsequent years for each of the licensed indications