definiens: shall mean the gross proceeds derived by Licensee and/or its sublicensees from the sale of Licensed Product bearing the Licensed Trademark in the Territory while this Agreement is in eﬀect, after deducting normal and customary cash and trade discounts, returns, allowances, transportation and insurance charges or allowances, if shown on the invoice for the sale, and sales, excise, turnover or similar taxes, if any paid or allowed by Licensee, or its sublicensees directly in respect of such sales . Net Sales for Combination Products shall be determined by multiplying the Net Sales of such Combination Product by a fraction ; the numerator of the fraction shall be the cost to Licensee of the active substance supplied by Licensor, and the denominator shall be the total cost to Licensee of all active ingredients contained in such Combination Product but in no event shall the royalty be decreased to less than one - half ( 1/2 ) of the amount obtained in applying the royalty rate under Article III, Paragraph 1 below to the Net Sales of the Combination Product . Costs shall be determined according to Licensee 's accounting methods for determining the cost of its pharmaceutical products