definiens: shall mean the gross amount invoiced by Licensee, or its Affiliates and sublicensees, or any of them, on all sales of Licensed Products, less : ( i ) trade discounts earned or granted for quantity purchases, prompt payment discounts and cash discounts, to the extent actually allowed, ( ii ) credits for claims, allowances, retroactive price reductions, rejections, returned goods or billing errors, to the extent actually allowed, ( iii ) custom duties, ifany, prepaid freight and insurance, and ( iv ) sales taxes or other governmental charges actually paid in connection with sales of Licensed Products ( but excluding what is commonly known as income taxes ) . For purposes of detennining Net Sales, a sale shall be deemed to have occurred when an invoice therefor shall be generated by the Licensee and the Licensed Product has been shipped for delivery . Sales of Licensed Products by Licensee, or an Affiliate or sublicensee of Licensee to any Affiliate or sublicensee which is a reseller thereof shall be excluded, and only the subsequent sale of such Licensed Products by Affiliates or sublicensees of Licensee to unrelated parties shall be deemed Net Sales hereunder