definiens: means, with respect to any calendar month, the greater of ( a ) theratio ( expressed as a percentage ) computed as of the last day of such calendar month by dividing(i ) the aggregate amount of any reductions to or cancellations of the respective OutstandingBalances of the Receivables as a result of any defective, rejected or returned merchandise orservices and all credits, rebates, discounts, disputes, warranty claims, repossessed or returnedgoods, chargebacks, allowances and any other billing and other adjustment ( whether effectedthrough the granting of credits against the applicable Receivables or by the issuance of a checkor other payrnent in respect of ( and as payment for ) such rcduction ) by the Seller, the Transferoror the Collection Agent, provided to Obligors in respect of Receivables during such month, excluding ( w ) any Pre - Arranged Contractual Adjustment reflected in the initial OutstandingBalance of the applicable Receivable, ( x ) volume rebates paid in cash by the Dialysis ProductsDivision and ( y ) credit memos for future purchases ( it being understood and agreed that anyReceivables arising from such purchases will have an initial Outstanding Balance that reflectssuch credit memos ) bV ( ii ) the aggregate Outstanding Balance of all Receivables which aroseduring the preceding month and ( b ) 6.0 %