McKesson 2005 Annual Report Download - page 285

Managing Agents and the Purchasers prior to the Effective Date, and (iii) other matters related to the matters disclosed in the Press Release
which have been publicly disclosed by McKesson in its filings with the Securities and Exchange Commission prior to the Effective Date.
“Discount and Servicing Fee Reserve” means, on any date, the sum of (i) one and one-half of one percent (1.5%) times the lower of
the Net Receivables Balance and the Purchase Limit as of the close of business on the immediately preceding Business Day plus (ii) the
average outstanding amount of accrued and unpaid Yield and fees during the preceding Collection Period, such component to be calculated in
each Monthly Report which component shall, absent manifest error, become effective from the corresponding Monthly Settlement Date until
the next succeeding Monthly Settlement Date. The Collateral Agent shall estimate the component of the Discount and Servicing Fee Reserve
described in clause (ii) above for the period from the initial purchase hereunder until the first Monthly Settlement Date.
“Discount Rate” means the CP Rate, the LIBO Rate or the Base Rate, as applicable, with respect to each Purchaser Interest.
“Dollars”, “$” or “U.S.$” means United States dollars.
“Earned Discounts” means, as of any date of determination, the sum of (a) the aggregate dollar amount of all rebate accruals resulting
from volume discounts earned by Obligors for reasons other than payments made by such Obligors on account of Receivables within their
payment terms and (b) an amount equal to the product of (i) 2.0% and (ii) the aggregate Outstanding Balance of all Receivables (net of
quarterly volume rebates).
“Effective Date” means June 11, 2004.
“Eligible Receivable” means, at any time, a Receivable:
(i) the Obligor of which (a) if a corporation or other business organization, including any sole proprietorship, is organized under the
laws of the United States or any political subdivision thereof and has its chief executive office in the United States; provided, however, that
nothing contained herein shall preclude any natural person from providing a personal guarantee in favor of a corporation or other business
organization, including any sole proprietorship, with respect to any Receivable; (b) is not an Affiliate of any of the parties hereto; and (c) is
not a Designated Obligor,
(ii) the Obligor of which is not an Obligor on Defaulted Receivables, the balance of which exceeds twenty-five percent (25%) or
more of such Obligor’s Receivables,
(iii) which is not a Defaulted Receivable or a Delinquent Receivable,
(iv) which (i) by its terms is due and payable within thirty (30) days of the original billing date therefor and has not had its payment
terms extended or (ii) is an Extended Term Receivable,
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