definiens: shall mean the gross receipts from sales of SB P.R!lDIJCT undeF this Agreement : ( a ) in finished product form ( i.e., packaged for sale to the ultimate consumer ) in the TERRITORY by SB and/or its licensees to TIDRD PARTIES ; or if not sold by SB and/or its licensees in finished fonn, then ( b ) in any product form other than finished product form in the TERRITORY by SB and/or its licensees to distributors or other entities who subsequently convert such into finished product fonn, provided that such distributors or other entities shall not be considered to be licensees for the purposes of this SB NET SALES definition because of such converting, however, in a country where SB sells other than finished product form to a distributor, ' in the event SB realizes additional income from said distributor other than SB NET SALES and such additional income is specifically related to the sale of SB PRODUCT, then SB shall pay royalties to VRI based on the said distributor 'S sales to TIllRD PARTIES ; less deductions actually invoiced and/or specifically allocated to SB PRODUCT by SB using generally accepted accounting standards for ( i ) transportation charges, including transportation insurance ; ( ii ) sales and excise taxes and duties paid or allowed by a selling party and any other governmental charges imposed upon the production, importation, use or sale of such SB PRODUCT ; ( iii ) trade and quantity discounts allowed ; ( iv ) allowances or credits to customers on account of rejection or return of sa PRODUCT subject to royalty under this Agreement or on account of retroactive pric~ reductions affecting such sa PRODUCT ; and ( v ) rebates and chargebacks . Sales between or among SB and its AFFll .. IA TES and/or their licensees shall be excluded from the computation of SB NET SALES, except where such AFFIT ... IATES or licensees are end users or where such AFFILIATES or licensees are a PSB . but SB NET SALES shall include the subsequent sales to THIRD PARTIES