definiens: will mean ( 1 ) with respect to sales by a Party, or an Affiliate of a Party, or a distributor of a Party to non ~ affiliated third party purchasers, the actual amount of gross sales of Licensed Product(s ) to a third party, less : trade, cash and quantity discounts granted at the time invoice, if any, actually allowed, amounts refunded for faulty or defective product, returns, rejections, freight, insurance and other transportation costs ( except income taxes ), tariffs, duties and similar 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, finn or corporation enjoying a special course of dealing with a Party, the Net Sales will be detennined based on the first re ~ e in a bona fide anns - Iength 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 infonnation to a third party for commercial purposes, or are otheIWise disposed of, the Net ' Sales shall be determined as if such Licensed Product(s ) had been sold at the average Net Sales for such Licensed Product{s ) during the past one hundred and twenty days . .~ 1.10 . will mean SBio or Perkin - Elmer and, when used in the plural, will mean SBio and Perkin - Elmer