definiens: means the first sale for end - use or consumption of a Product . CONFIDENTIAL 1.7 means the total gross amount invoiced and paid to BAC or any Affiliate of BAC for sales or transfers ofProducts to an unrelated third party anywhere in the world, ( a ) less deductions for : ( i ) freight, postage and duties and transportation charges directly related to the Products sold ( including handlingand insurance with respect thereto ) ; ( ii ) sales, value added and excise taxes or customs paid, and any other similar governmental charges imposed uponthe sale of the Products that are not recoverable ; ( iii ) allowances, chargebacks or credits actually granted by BAC or its Affiliates to end - users not in excess of theselling price of Products, on account of rejection, outdating, recalls or return of Products ; and ( iv ) rebates, reimbursements, fees or similar payments : ( 1 ) to wholesalers and other distributors, pharmacies andother retailers, buying groups ( including group purchasing organizations ), health care insurance carriers, pharmacy benefitmanagement companies, health maintenance organizations, hospitals, clinics, government agencies or authorities or otherinstitutions or health care organizations ; or ( 2 ) to patients and other third parties arising in connection with any programapplicable to Products under which the BAC or its Affiliates provide to low income, uninsured or other patients theopportunity to obtain one or more Products at a reduced cost