definiens: means, with respect to traits conferred in their entirety to a Royalty Base Product, an amount equal to the gross trait revenue ( e.g., [COMPANY] 's trait invoice price ) received by [COMPANY] from licensees or from branded sales, as reasonably determined by [COMPANY] consistent with its then - current custom and practice ( e.g., whether calculated on a unit basis at the time of transfer, or the equivalent if trait fees are collected via a different commercial system such as point of delivery, with unit equivalency determined using standard regional agronomic practices and production rates ) all in accordance with generally accepted accounting principles ( GAAP ), less all returns, customer rebates, dealer incentives, channel and marketing programs, volume discounts, seed service fees, cash discounts ( pre - pay discounts ), local competitive response, freight and insurance, which deductions are allocated on a trait - specific basis within the [COMPANY] commercial stack, or if such deductions do not apply to specific traits, then as allocated pro rata across the weighted value of all stacked traits and other items of value ( e.g. germplasm value ) in the applicable Royalty Base Product