definiens: shall mean arm 's length billingsfor LICENSED PRODUCTS, whether sold as research products, formulated product or inthe form of a kit, produced hereunder, less the following:(a ) Discounts allowed and taken in amounts customary in the trade,(b ) Sales, use taxes, tariffs or duties directly imposed and withreference to particular sales,(c ) Outbound transportation prepaid or allowed,(d ) Amounts allowed or credited on return or retroactive pricereduction,(e ) Royalties paid in arms - length transactions to third parties for alicense under DOMINATING PATENTS hereinafter defined, not to exceed in theaggregate fifteen percent of the seller 's ' actual billing of the L1 < ZENSED PRODUCT . Byway of example, if seller 's billing for a given LICENSED PRODUCT is $ 100.00, and ifCETUS shall have paid royalties of $ 16.00 on such LICENSED PRODUCT to a third partyor parties for a license under one or more DOMINATINGPATENTS, in computing theNET SALES VALUE of the LICENSED PRODUCT, CETUS shall be entitled under thisclause ( e ) to deduct up to a maximum of $ 15.00 from the $ 100.00 in computing the NETSALES VALUEof the LICENSED PRODUCT under this ARTICLE I