definiens: shall mean ( i ) gr oss revenues and fees due to [COMPANY] and its Controlled Affiliates from the sal e of any service by [COMPANY] or its Controlled Affiliates ( as reported in OncorM ed 's and its Controlled Affiliates ' quarterly and annual reports filed from time to time with the Securities and Exchange Commission or, if such repo rts are not prepared, such alternative reports as may be most appropriate ), le ss any allowances actually made and taken for returns, refunds or recalls ; tra de discounts actually allowed in amounts and for purposes customary in the trade ; an allowance for actual bad debts, not to exceed six percent ( 6 % ) of gross reve nues and fees ; sales, use, value - added and similar taxes and duties and simila r governmental assessments ; transportation, packing and shipping insurance actu ally paid ; and the direct costs ( as determined in accordance with generally a ccepted accounting principles ) to [COMPANY] and its Controlled Affiliat es of any reagents, chemicals, supplies and materials used in providing the service and ( ii ) the payments actually received by [COMPANY] from sublice nsees other than its Controlled Affiliates ( which have been approved by [COMPANY] ) for sales by the sublicensees of any service which is based in whole or in part on [COMPANY] Technology or an [COMPANY] Technology Improvement subli censed to the sublicensees by [COMPANY]