“Net Recovery Percentage” means the fraction, expressed as a percentage # the numerator of which is the amount equal to the recovery on the aggregate amount of the applicable category of Eligible Inventory at such time on a “net orderly liquidation value” basis as set forth in the most recent Acceptable Appraisal of inventory received by Agent in accordance with the requirements of this Agreement, net of operating expenses, liquidation expenses and commissions reasonably anticipated in the disposition of such assets and # the denominator of which is the original cost of the aggregate amount of the Eligible Inventory subject to such Acceptable Appraisal.

“Net Recovery Percentage” shall mean the fraction, expressed as a percentage, as to Inventory, # the numerator of which is the amount equal to the amount of the recovery in respect of the Inventory at such time, as to Inventory of the Retail Division, on a “net orderly liquidation value” basis, and as to Inventory of the Distribution Division, on a “net orderly liquidation value” basis as set forth in the most recent acceptable appraisal of Inventory received by Administrative Agent in accordance with [Section 7.3], in each case, net of operating expenses, liquidation expenses and commissions, and # the denominator of which is the applicable original cost of the aggregate amount of the Inventory subject to such appraisal.

“Net Recovery Percentage” means the fraction, expressed as a percentage, # the numerator of which is the amount equal to the recovery on the aggregate amount of the Inventory at such time on a “going out of business sale” basis as set forth in the most recent appraisal of Inventory received by the [[Administrative Agent:Organization]] and the [[FILO Documentation Agent:Organization]] in accordance with Section 7.4, net of operating expenses, liquidation expenses and commissions, and # the denominator of which is the applicable original cost of the aggregate amount of the Inventory subject to appraisal. The Net Recovery Percentage for any category of Inventory used in determining the Borrowing Base and the FILO Borrowing Base shall be based on the applicable percentage in the most recent appraisal conducted as set forth in Section 7.4.