Common use of Definition of Net Sales Clause in Contracts

Definition of Net Sales. For purposes of this Agreement, “Net Sales” shall be deemed to mean the aggregate invoiced amounts of Articles (and Products to which the Licensed Mxxx is not affixed and Articles from which the Licensed Mxxx has been removed in accordance with the provisions of Paragraph 14.3 below) sold or shipped by Licensee or any of its affiliates, less (i) customary trade discounts and markdown allowances actually earned and taken by customers (but expressly excluding discounts for prompt payment, such as “anticipation” discounts, and co-op advertising allowances) and (ii) amounts of returns or credits actually taken or granted by Licensee in accordance with its ordinary return policy. No deduction shall be made for other discounts or allowances of any kind or for any purpose, or for uncollectible accounts, accruals or reserves for returns, or costs incurred by Licensee. Sales or transfers of Articles made other than in arm’s length transactions and/or at less than the regular wholesale price shall be deemed to have been made at the regular wholesale price thereof.