definiens: means the gross selling price by Santen or its Affiliates or Sublicensees of all sales of the Products to any Distributor or other Person ; less the following deductions, on a country -by - country basis : ( a ) normal and customary trade, cash and quantity discounts, allowances and credits in the calendar year in question ; ( b ) credits or allo wances 5 granted for damaged goods, returns or rejections of Products and retroactive price reductions ; ( c ) sales or similar taxes ( including duties or other governmental charges ) levied, absorbed or otherwise imposed on the sale of the Products, includ ing, without limitation, value added taxes or other governmental charges otherwise measured by the billing amount, when separately itemized included in such billing ; ( d ) freight, postage, shipping, customs duties, and insurance charges when separately itemized in the invoice ; and ( e ) charge back payments, discounts, and rebates ( whether mandated or otherwise ) granted to trade customers, or federal, state and local governments and their agencies, including, without limitation, buying groups, and charge back payments, discounts and rebates ( whether mandated or otherwise ) charged by national or local governmental authorities in countries within the Territory . Sales between or among Santen, its Affiliates or Sublicensees shall not be Net Sales . If Santen wishes to bundle Product with other products, Santen shall have the right to do so, provided that the parties shall negotiate in good faith the Net Sales price for the bundled Product to be used for the purposes of Royalty calculations hereunder, which Net Sales price shall reflect a commercially reasonable discount based on the bundle price compared to the unbundled prices of the bundled products . As used herein, a is two or more products, in which at least one product is not a Product, sold together as a unit at a single price for the unit