definiens: shall have the definition provided in Article 6.1 . 1.16 shall mean the gross invoiced sales of Predictive Pattern Technologies received by [COMPANY] or its Affiliates during the applicable period in arm 's length trans actions after deduction of the following items, provided an d to the extent such items are actually incurred an d do not exceed reasonable and customary amounts in each mar ket in which such sales occurred : ( i ) trade and qua ntity discounts and rebates ; ( ii ) credits or allowances m ade for rejection or return of previously sold Predictive Pattern Technologies ; ( iii ) any tax or government charge levied on the sale, such as value added tax ( but not including income tax ) ; and ( iv ) any charges for fre ight or insurance . In the event that the Predictive Pattern Technologies is sold or otherwise transferred to a third party for a price lower than if it had been sold to a thi rd party in an arm 's length transaction ( ), then Net Predictive Pattern Revenues shall be the fair market value of the Predictive Pattern Technologies