definiens: means proceeds from Commercial Sales of New Products by Novo, its Affiliates or Sublicensees to Third Parties, after deducting ( to the extent actually -4 -incurred or reasonably estimated and accrued in accordance with Generally Accepted Accounting Principles in the United States and to the extent not already deducted in the amount invoiced ): ( i ) reasonable trade, cash and quantity discounts or rebates ( other than price discounts granted at the time of sale ), reasonable service allowances and reasonable required agent 's commissions, if any, allowed or paid, ( ii ) credits or allowances actually given or made for rejection or return of previously sold products or for retroactive price reductions ( including Medicare, Medicaid, and/or discounts and similar types or rebates and/or discounts ), ( iii ) taxes, duties or other governmental charges levied on or measured by the billing amount ( excluding income and franchise taxes ), as adjusted for rebates and refunds, and ( iv ) charges actually incurred for freight and insurance directly related to the distribution of New Products ( excluding amounts reimbursed by Third Party customers ) . A is deemed to occur when the invoice is issued, or if no invoice is issued, upon the earlier of shipment or transfer of title in the New Product to a Third Party . In the event that New Product is sold or distributed for use in combination with or as a component of another product or products ( a ), the calculation of Net Sales from such Combination Product shall be determined as set forth below : If all of the active ingredient components of a Combination Product are also sold separately and in identical strengths to those contained in the Combination Product, then the following shall apply : Net Sales shall be calculated as set forth above on the basis of the gross invoice price of a New Product containing the same weight of the licensed active ingredient constituent sold independently [ A ], divided by the sum of the gross invoice price of all of the active ingredient constituents sold independently [ B + A ], multiplied by the gross invoice price of the Combination Product, as shown by the following formula : Net Sales = rAJ x [ gross invoice price of the Combination Product ] [ B + A ] The distribution costs associated with any Combination Product will be allocated in the same proportion among the licensed active ingredient components and all other active ingredient components