definiens: . Net Sales means the gross amounts billed or invoiced by TransTech, its Affiliates andSublicensees to any Third Party that is not a Sublicensee with respect to sales of Licensed Products in the Territory, calculated in the same manner as reported in its audited financial statements, less the sum of the following : ( a ) Discounts, credits, refunds and rebates actually allowed by TransTech, its Affiliates or theirSublicensees in amounts customary in the trade directly for a Licensed Product ; ( b ) Sales, import, export, customs, and value added taxes, and duties directly imposed on theLicensed Products and actually paid by TransTech, its Affiliates or their Sublicensees, in each case included as aspecific line item on an invoice to such Third Parties ; 5 ( c ) Actual outbound freight and insurance costs actually paid by TransTech, its Affiliates or theirSublicensees directly on Licensed Products, in each case included as a specific line item on an invoice to such ThirdParties ; ( d ) Amounts actually allowed or credited on returns of sales of Licensed Products by TransTech, itsAffiliates or their Sublicensees ; and ( e ) Amounts that are actually written off as non - collectible for the sale of Licensed Products afterTransTech ’s, its Affiliates ’ or their Sublicensees ’ commercially reasonable best efforts to collect such amounts