definiens: means each three - month period beginning on January 1, April 1, July 1 and October 1 . The term means the consideration received from, or fair market value attributable to, each Sale of a Licensed Product, lessQualifying Costs directly attributable to a Sale and borne by Company or its Affiliates or sublicensees . For purposesof determining Net Sales, the words mean the cash consideration that Company or its Affiliates orits sublicensees would realize from an unrelated buyer in an arms length sale of an identical item sold in the samequantity and at the time and place of the transaction . The term means : ( a ) customary discounts inthe trade for quantity purchased, prompt payment or wholesalers and distributors ; ( b ) credits or refunds for claims orreturns that do not exceed the original invoice amount ; ( c ) prepaid outbound transportation expenses andtransportation insurance premiums ; and ( d ) sales and use taxes and other fees imposed by a governmental agency