definiens: means the gross amount billed or invoiced ( for th e avoidance of doubt, excluding VAT ) by Midatech, its Affiliates or its or their re spective Sublicensees ( including distributors of Au thorized Generic Versions of Licensed Product(s ) ) hereunder in the Territory for any Licensed Product sold to T hird Parties ( other than Sublicenses or distributors of Authoriz ed Generic Versions of Licensed Product(s ) ), on a c ountry - by - country basis, less the following deductions, appli ed in accordance with Midatech ’s Accounting Standar ds, for : [ * * * ] With respect to the calculation of Net Sales : ( i ) Net Sales only include the value charg ed or invoiced on the first arm ’s length sale to a Third Party and sales between or among Midatech and its Affiliates and Sublicensees shall be disregard ed for purposes of calculating Net Sales ; 8 CONFIDENTIAL TREATMENT REQUESTED : Certain portions of this document have been omitted pursuant to a request for confidential treatment an d, where applicable, have been marked with an asterisk ( ) to denote where omissions have b een made . The confidential material has been filed separately with the Securities and Exchange Commiss ion