definiens: means the total of the gross invoic e prices of Licensed Products sold or Licensed Meth ods performed by the Licensee, an Affiliate, or a Subli censee, less the sum of the following actual and cu stomary deductions where applicable : cash, trade, or quanti ty discounts ; sales, use, tariff, import / export dut ies or other excise taxes imposed on particular sales ; transport ation charges and allowances ( including insurance ) ; or credits to customers because of rejections, returns, or exp ired goods . For purposes of calculating Net Sales, transfers to an Affiliate or Sublicensee for end use by the Affi liate or Sublicensee will 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 busi ness entity in which the Licensee owns or controls, directly or indirectly, at least fifty percent ( 50 % ) of the outstanding stock or other voting rights e ntitled to elect directors, or in which the Licensee is owned or con trolled directly or indirectly by at least fifty pe rcent ( 50 % ) of the outstanding stock or other voting rights entitl ed to elect directors ; but in any country where the local law does not permit foreign equity participation of at least fifty percent ( 50 % ), then an includes any company in which the Licensee owns or controls or is owned or controlled by, directly or indirectly, the maxim um percentage of outstanding stock or voting rights pe rmitted by local law