definiens: means the gross amount invoiced on sales of Produc t by Company and its Affiliates and Sublicensees and transferees of Prog ram Inventions, less the following deductions with respect to the sale of such Product : ( i ) normal trade, cash a nd quantity discounts and other customary discounts actually given to customers in the ordinary course of busine ss ; ( ii ) rebates, credits and allowances given by r eason of rejections, returns, damaged or defective product o r recalls ; ( iii ) government - mandated rebates and an y other compulsory payments, credits, adjustments and rebat es actually paid or deducted ; ( iv ) price adjustment s, allowances, credits, chargeback payments, discounts, rebates, fees, reimbursements or similar payments granted to group purchasers, pharmacy benefit management co mpanies, health maintenance organizations and any o ther providers of health insurance coverage, health care institutions ( including hospitals ), patient assist ance or other similar programs, or to federal, state / provincial, local and other governments, including their agenci es, or to wholesalers, distributors or other trade customers ; ( v ) reasonable and customary freight, shipping, in surance and other transportation expenses, if actually borne by Company or its Affiliates or Sublicensees or trans ferees without reimbursement from any Third Party ; ( vi ) sa les, value - added, excise taxes, tariffs and duties, and other taxes and 4 government charges directly related to the sale, de livery or use of Product ( but not including taxes a ssessed directly against the income derived from such sale ) net of any credits or allowances received by Compa ny or its Affiliates or Sublicensees or transferees with resp ect to such taxes or charges ; and ( vii ) any item, s ubstantially similar in character or substance to any of the for egoing, calculated in accordance with GAAP consiste ntly applied and customary in the pharmaceutical industr y to be deducted in the definition of net sales in a license agreement of this type