definiens: means [ the total of the gross invoice prices of Licensed Products sold or leased by LICENSEE, Sublicensee, Affiliate, or any combination thereof, less the sum of the following actual and customary deductions where applicable and separately listed : cash, trade, or quantity discounts ; sales, use, tariff, import / export duties or other excise taxes imposed on particular sales ( except for value - added and income taxes imposed on the sales of Licensed Product in foreign countries ) ; transportation charges ; or credits to customers because of rejections or returns . For purposes of calculating Net Sales, transfers to a Sublicensee or an Affiliate of Licensed Product under this Agreement for ( i ) end use ( but not resale ) by the Sublicensee or Affiliate shall be treated as sales by LICENSEE at list price of LICENSEE, or ( ii ) resale by a Sublicensee . or an Affiliate shall be treated as sales at the list price of the Sublicensee or Affiliate ]