definiens: shall mean, with respect to any quantity of Product subject to royalty under this Agreement that is sold by [COMPANY] or any of its Aff iliates or sublicensees to any third party, the gro ss invoice selling price for that quantity of Product, less : ( a ) discounts and allowances to customers, ( b ) credi ts for returned goods, ( c ) prepaid freight, ( d ) sales taxes or othe r governmental charges paid in connection with the sale ; and ( e ) commissions and other fees paid to distributors and other sales agencies for or in connection with the sale of Product . In the event that a Product under this Agr eement is sold in combination with another active i ngredient or component having independent therapeutic effect or diagnostic utility, then for purpos es of determining royalty payments on the combination, sh all be calculated using one of the following method s : ( a ) By multiplying the Net Sales of the combination by the fraction A / A+B, where A is the gross selling price, during the royalty paying period in question, of the Product sold separately, and B is the gross selling price, during the royalty period in question, of the other active ingredients or components sold separately ; or ( b ) In the event that no such separate sales are made o f the Product or any of the active ingredients or components in such combination package during the r oyalty paying period in question, Net Sales, for the purposes of determining royalty payments, s hall be calculated by dividing the Net Sales of the combination by the number of active ingredients or components ( including Products ) contained in the combination