definiens: shall mean : ( a)in the case of LICENSED PRODUCTS, revenue received by COMPANY ( and/or COMPANY AFFILIATESand / or SUBLICENSEES, as the case may be ) from sale and/or lease of the subject LICENSED PRODUCTSto a THIRD PARTY ; and ( b)in the case of LICENSED SERVICES, revenue received by COMPANY ( and/or COMPANY AFFILIATES, and/or SUBLICENSEES, as the case may be ) for provision of the subject LICENSED SERVICE to aTHIRD PARTY, and ( c)in the case that one or more LICENSED PRODUCTS and/or LICENSED SERVICES are sold in acombination package or kit containing other active products or processes or services one or more ofwhich is not covered by the DUKE LICENSES ( such combination package and/or kits collectivelyreferred to as ), then, for purposes of determiningCOMPANY RUNNING ROYALTIES due to DUKE on the subject COMBINATION LICENSEDPRODUCTS / SERVICES in accordance with Section 3.01(b ), NET SALES of the subject COMBINATIONLICENSED PRODUCTS / SERVICES shall be calculated using one of the following methods : ( i)By multiplying the total NET SALES of the subject COMBINATION LICENSEDPRODUCTS / SERVICES by the fraction AIA+B, where A is the gross selling price, during theroyalty - paying period in question of the subject LICENSED PRODUCT and/or LICENSEDSERVICE sold separately, and B is the gross selling price during the royalty period in question, ofthe other active products, processes or services sold separately, or ( ii)If no separate sales are made of the subject LICENSED PRODUCT and/or LICENSED SERVICEand / or of the other active agents or processes in such during the royalty - paying period in question, NET SALES for the subject COMBINATION LICENSED PRODUCTS / SERVICES shall becalculated equitably in good faith by the mutual agreement of DUKE and COMPANY ( and / orsubject SUBLICENSEES, as the case may be ) taking into account factors such as the total numberof active agents or processes ( including LICENSED PRODUCTS and/or LICENSED SERVICES)and the relative contribution and value of each to the subject COMBINATION LICENSEDPRODUCTS / SERVICES ; or ( iii)Notwithstanding the foregoing Sections 1.13(i ) and 1.13(ii ) or anything else to the contrary in thisAGREEMENT, in no event -5- shall the NET SALES for the purposes of determining COMPANY RUNNING ROYALTIES due toDUKE on the subject COMBINATION LICENSED PRODUCTS / SERVICES in accordance withSection 3.01(b ) be less than the fifty percent ( 50 % ) of actual NET SALES of the subjectCOMBINATION LICENSED PRODUCTS / SERVICES calculated under this Section 1.13 withoutregard to Sections 1.13(i ) and/or 1.13(ii )