definiens: means the total of the gross amount invoiced or otherwise charged ( whether consisting of cash or any other forms of consideration ) for the F inal Sale of Licensed Products or Licensed Methods by Licensee, or by any Affiliate, Joint Venture or Sublicensee t o Customers, less the following deductions ( to the extent included in and not already deducted from the gross amount i nvoiced or otherwise charged ) to the extent reasona ble and customary : cash, trade or quantity discounts actual ly granted to Customers ; sales, use, tariff, import /export duties or other excise taxes imposed on particular sales ( excepting value added taxes or income taxes ) ; trans portation charges, including insurance to the extent actually paid by the Customer ; and allowances or credits to Customers because of rejections or returns . Where Licensee or any Affiliate, Joint Venture or Sublicensee is the Customer, then Net Sales shall be based on the gross amount n ormally invoiced or otherwise charged to other Cust omers in an arms length transaction for such Licensed Produc ts or Licensed Methods . For the avoidance of doubt, if Licensee or any Affiliate, Joint Venture or Sublice nsee supplies ( directly or indirectly ) a Product th at constitutes a 8 - Jul-05 Licensed Product to any Affiliate, Joint Venture or Sublicensee and such Affiliate, Joint Venture or Sublicensee includes such Product in another Produc t, then Net Sales shall be based on the total gross amount invoiced or otherwise charged for such other Produc t in its entirety . If License pays a third party ro yalties in consideration for patent rights which are necessary in order to practice Regents ' Patent Rights then L icensee or Sublicensee, as the case may be may deduct .333 % fr om the royalty rate due to The Regents under this A greement for every percentage point paid to third party in r oyalties, provided that in no event shall royalties or other amounts due to The Regents in any reporting period be reduc ed to less than 50 % of what would otherwise be due to The Regents