definiens: shall mean the total gross receipts for sales of Licensed Products or practice of Licensed Processes by or on behalf of Licensee or its sublicensees to a third party in an anns - length transaction, and from leasing, renting, or otherwise making Licensed Products available to a third party in an anns·length transaction, whether invoiced or not, less returns and allowances, packing costs, insurance costs, freight out, taxes or excise duties imposed on the transaction ( if separately invoiced and paid ), and wholesaler and cash discounts in amounts customary in the trade to the extent actually granted . No deductions shall be made for commissions, or for the costs of collections . Net sales shall also include the fair market value of any non - cash consideration received by Licensee or sublicensees for the sale, lease, or transfer of Licensed Products or Licensed Processes . In no case shall Licensed Products transferred to third parties for use in clinical trials or provided free of charge small quantities for compassionate use or other charitable purposes be deemed to be Net Sales