definiens: shall mean, for any period, the gr oss amount invoiced by Licensee and its Affiliates for the sale of License d Product by Licensee or any of its Affiliates to Third Parties, less deduct ions for chargebacks, billing errors, rejected goods, damaged goods and r eturns . Any of the deductions listed above that involves a payment by Licensee or its Affiliates shall be taken as a deduction in the cal endar quarter in which the payment is accrued by such entity . For purposes of determining Net Sales, a Licensed Product shall be deemed to be sol d when invoiced and a shall not include transfers, uses or disposi tions for promotional, pre - clinical, clinical, regulatory or governmental purposes . For purposes of calculating Net Sales, sales between or among Li censee or its Affiliates shall be excluded from the computation of Net Sales, but sales by Licensee or its Affiliates to Third Parties shall be include d in the computation of Net Sales