definiens: shall mean the gross amount invoiced by AURIGA, or its Affiliates and Sub - licensees, orany of them, on all sales of Licensed Products less ( i ) actual returns and actual credits taken, ( ii ) freight, postage, andshipping expenses ( including insurance relating thereto ) absorbed by [COMPANY] ; and ( iii ) sales and other excise taxes, tariffs, customs duties or other duty and any other governmental charges . For purposes of determining Net Sales, asale shall be deemed to have occurred when an invoice therefore shall be generated or the Licensed Product shippedfor delivery . Only sales of Licensed Products by AURIGA, or an Affiliate or Sub - licensee of AURIGA to unrelatedparties shall be deemed Net Sales hereunder . If the Licensed Product is sold in the form of a Combination Product, then for the purpose of calculating royalties owed under this Agreement on sales of the Combination Product, NetSales shall mean an amount equal to the actual net sales of such Combination Product ( calculated using the methoddescribed above ) multiplied by the fraction A/(A+B ), where A is the weighted ( by sales volume ) average invoice priceof the actual Licensed Product component of such Combination Product, and B is the total of the weighted ( by salesvolume ) average invoice prices of the other products, active ingredients, devices, equipment or components of suchCombination Product