definiens: means all gross revenue derived by Selten or Sublic ensees, their distributors or designees, from the sale, transfer or other disposition of Lic ensed Product to an end user . Sales or transfers to distributors or Sublicensees shall not be included in Net Sales until the actual sale or transfer by distributors or Sublicensees to a non - affiliate thi rd party except if such distributor or Sublicensee is an end user . In the event that such distributor or Sub licensee is an end user, then Net Sales will based on the average selling or transfer price of Licensed Produ cts at the time that the Licensed Products were sol d or transferred . Net Sales excludes the following items ( but only as they pertain to the making, using, importing or selling of Licensed Products, are incl uded in gross revenue, and are separately billed ): ( A ) import, export, excise and sales taxes, an d custom duties ; ( B ) costs of insurance, packing, and transport ation from the place of manufacture to the customer 's premises or point of installation ; 2 * * * INDICATES MATERIAL THAT WAS OMITTED AND FOR WHI CH CONFIDENTIAL TREATMENT WAS REQUESTED . ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUAN T TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 19 34, AS AMENDED