definiens: shall mean the gross amount invoiced by Company or Affiliates to third parties, which are notSublicensee(s ), from sales of Licensed Products in an arm ’s length transaction, less ( i ) discounts allowed in amountscustomary in the trade for quantity purchases, cash payments, or prompt payments, to wholesalers and distributors;(ii ) sales, tariff duties and/or use taxes directly imposed and with reference to particular sales, including VAT ; ( iii)outbound transportation prepaid or allowed, amounts allowed or credited on returns, export licenses, import duties, andprepaid freight ; ( iv ) amounts not actually collected by reason of rejection, return of goods, and retroactive pricereductions ; and ( iv ) Third Party Royalties . No deductions shall be made for commissions paid to individuals whetherthey are with independent sales agencies or regularly employed by Company and on its payroll or for cost ofcollections . In the event of sales not made at, Net Sales shall be calculated in accordance with arm’slength prices determined by current market conditions . Yissum will have to establish that sales are not made at arm’slength on the basis of adequate documentary evidence . Net Sales occur when a Licensed Product is invoiced