definiens: means ( I ) with respect to sales by J Party, or an Affiliate ofa Party, to non - affiliated third party purchasers, the actu ~ l amount of gross sales of LicensedProduct(s ) to a third party, less : trade,!cash and quantity discounts granted at the time invoiced, if any, actually all!wed, amounts refunded for faulty or defecti ve product, returns, rejections, freight,1 insurance and other transportati on costs ( except income taxes ), tariffs, duties and s, imilar governmental charges paid, to the extent included in gross sales price, ( 2 ) with respect to sales by a Party made to any Affiliate or to any person, firm or dorporatidn enjoying a special V5 Epoch License Supply Agmt 08/06~9 636626.1117638 .0000 -1- ! 2.03 2.04 2.05 2.06 2.07 2.08 course of dealing with a Party, the Net Sales will be determined based on the first resale in a bona fide arms - length transaction of Licensed Product(s ) by such Affiliate, person, firm or corporation to third parties, and ( 3 ) with respect to Licensed Product(s ) which are used by a Party, or an Affiliate of a Party, to supply services or information to a third party for commercial purposes, or are otherwise disposed of, the Net Sales will be determined as if such Licensed ' Product(s ) had been sold at the average Net Sales for such Licensed Product(s ) du(ing the past one hundred and twenty days prior to the supply of such services or information