Common use of ADDITIONAL DEFINITIONS AND TERMS Clause in Contracts

ADDITIONAL DEFINITIONS AND TERMS. (a) Maximum Credit: $6,000,000 (b) Gross Availability Formulas: Eligible Accounts Percentage: 85% provided that the Dilution Percentage does not exceed 4%. The Dilution Percentage is the sum of Borrower's credits, allowances, discounts, write-offs, contra-accounts, offsets and deductions deemed necessary by Lender in its sole judgment which reduce the value of accounts receivable divided by gross invoices. The Dilution Percentage shall be calculated on a rolling 90 day average. If the Dilution Percentage exceeds 4% then the Eligible Accounts Percentage shall be reduced by such excess Dilution Percentage.

ADDITIONAL DEFINITIONS AND TERMS. (a) Maximum Credit: Credit (including any sums advanced under the EXIM Loan Agreement): $6,000,00025,000,000 (b) Gross Availability Formulas: Eligible Accounts Percentage: 85% provided that the Dilution Percentage does not exceed 45%. The Dilution Percentage is the sum of Borrower's credits, allowances, discounts, write-offs, contra-accounts, accounts and offsets and deductions deemed necessary by Lender in its sole judgment which reduce the value of accounts receivable Accounts divided by gross invoices. The Dilution Percentage shall be calculated on a rolling 90 day average. If the Dilution Percentage exceeds 4% 5%, then the Eligible Accounts Percentage shall be reduced at Lender's discretion by such excess Dilution PercentagePercentage and Lender may create a Reserve for such excess.