definiens: means the total of the gross invoice prices of Licensed Products sold or Licensed Methods performed bythe Licensee, an Affiliate, or a Sublicensee, less the sum of the following actual and customary deductions where applicable : cash, trade, or quantity discounts ; sales, use, tariff, import / export duties or other excise taxes imposed on particular sales;transportation charges and allowances ( including insurance ) ; or credits to customers because of rejections, returns, or expiredgoods . For purposes of calculating Net Sales, transfers to an Affiliate or Sublicensee for end use by the Affiliate or Sublicenseewill be treated as sales to an independent third party for purposes of calculating earned royalties ( as specified in Article 7)1.5 means any corporation or other business entity in which the Licensee owns or controls, directly orindirectly, at least fifty percent ( 50 % ) of the outstanding stock or other voting rights entitled to elect directors, or in which theLicensee is owned or controlled directly or indirectly by at least fifty percent ( 50 % ) of the outstanding stock or other votingrights entitled to elect directors ; but in any country where the local law does not permit foreign equity participation of at leastfifty percent ( 50 % ), then an includes any company in which the Licensee owns or controls or is owned orcontrolled by, directly or indirectly, the maximum percentage of outstanding stock or voting rights permitted by local law