definiens: for a territory shall mean total Net Sales of Collaboration Product s for use in such territory for a particular calend ar year after the first commercial sale of the first Collaboratio n Product in the applicable territory ( i.e. Canada and USA, in the case of Section 9.1.3 above, and the Ciba Terri tory in the case of Section 9.2 above ), and units o f Collaboration Products shall be considered sold in the year in which the order is accepted, the units are shipped to a customer, or the invoice is sent, whichever oc curs first . In the event that during the term of th is Agreement Annual Net Sales for a territory are accumulated in a period of less than one ( 1 ) full calendar year, for purposes of determining the incremental royalty rate under Section 9.1.3 a bove and/or Section 9.2 for such period, the royalty to be paid shall be based on annualizing the Annual Net Sales according to the formula ( 12 / X)(Y ), where X is the number of calendar months ( any calendar month in which sales activity occurs in the territory on fifteen ( 15 ) or more day s shall qualify as a calendar month for purposes of this calculation ) in the period, and Y is the sum of all Net Sales during the period in that territory