definiens: ) . The term shall mean the total amount invoiced by the Company and the total amount invoiced byeach Sublicensee in connection with the sale of Products ( for the removal of doubt, whether such sales aremade before or after the First Commercial Sale of any Product in any country ) ; in all cases after deduction of : ( a)sales taxes ( including value added taxes ) to the extent applicable to such sale and included inthe invoice in respect of such sale ; ( b)credits or allowances, if any, actually granted on account of price adjustments, recalls, rejections or returns of Products previously sold ; ( c)Bad Debts, meaning invoices which have been recognized by the Company as bad debts andwhich amounts the Company ’s accountants have agreed to include as bad debts in theCompany ’s financial statements in according with generally accepted accounting principlesand in accordance with Israeli income tax regulations, and which derive from Net Sales inrespect of which royalties were paid by the Company pursuant hereunder provided that : ( i ) with respect to sales which are not at arms - length and/or are not in the ordinary course ofbusiness and/or are not according to then current market conditions for such a sale, the term shall mean the total amount that would have been due in an arms - length salemade in the ordinary course of business and according to 7