McKesson 2005 Annual Report Download - page 284

“Designated Obligor” means an Obligor indicated by the Collateral Agent to Seller in writing.
“Dilution Horizon Ratio” means, as of any date as set forth in the most recent Monthly Report, a ratio computed by dividing (i) the
aggregate of all Receivables generated during the most recently ended Collection Period by (ii) the aggregate Outstanding Balance of total
Eligible Receivables as at the last day of the most recently ended Collection Period.
“Dilution Ratio ” means, for any Collection Period, the ratio (expressed as a percentage) computed as of the last day of such
Collection Period by dividing (i) an amount equal to the aggregate reductions in the Outstanding Balance of any Receivable as a result of any
Dilutions during such Collection Period by (ii) the aggregate Outstanding Balance of all Receivables generated during such Collection Period.
“Dilution Reserve” means, on any date, an amount equal to (x) the greater of (i) 3% and (ii) the Dilution Reserve Ratio then in effect
times (y) the aggregate Outstanding Balance of Eligible Receivables (net of Earned Discounts and quarterly volume rebates) as of the close of
business on the immediately preceding Business Day.
“Dilution Reserve Ratio” means, as of any date, an amount calculated as follows:
DRR = [(2.0 x ADR) + [(HDR-ADR) x (HDR/ADR)]] x DHR
where:
The Dilution Reserve Ratio shall be calculated monthly in each Monthly Report and such Dilution Reserve Ratio shall, absent manifest error,
be effective from the corresponding Monthly Settlement Date until the next succeeding Monthly Settlement Date.
“Dilutions” means, at any time, the aggregate amount of reductions or cancellations described in clause (i) of the definition of
“Deemed Collections”, other than (a) the aggregate dollar amount of all reductions in the aggregate Outstanding Balance of all Receivables
resulting from discounts earned by Obligors due to payments made by such Obligors on account of Receivables within their payment terms and
(b) volume rebates.
“Disclosed Matters” means (i) those matters described in McKesson’s press release dated April 28, 1999 (the “Press Release”),
(ii) litigation which (A) is related to the matters disclosed in the Press Release and (B) has been disclosed to the Collateral Agent, the
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DRR = the Dilution Reserve Ratio;
ADR = the average of the Dilution Ratios for the past twelve Collection Periods;
HDR = the highest average of the Dilution Ratios for any three consecutive Collection Periods during the
most recent twelve months; and
DHR = the Dilution Horizon Ratio.