“Ratios” shall mean, collectively, the Default Ratio, the Default Trigger Ratio, the Delinquency Ratio, the Dilution Ratio, the Dilution Reserve Ratio, the Dilution Trigger Ratio, the Loss Reserve Ratio and the Receivables Collection Turnover.

“Adjusted Dilution Ratio” means, at any time, the rolling average of the Dilution Ratio for the 12 Calculation Periods then most recently ended.

“Dilution Reserve” means, for any Calculation Period, the product (expressed as a percentage) of: # the sum of # the Stress Factor, times the Adjusted Dilution Ratio as of the immediately preceding Cut-Off Date, plus # the Dilution Volatility Component as of the immediately preceding Cut-Off Date, times # the Dilution Horizon Ratio as of the immediately preceding Cut-Off Date.

Contractual Dilution. The Master Servicer shall include in each Monthly Report delivered to Administrative Agent, the Contractual Dilution Reserve for the then outstanding Pool Receivables as of the Cut-Off Date for the prior Calculation Period, including the specific amounts related to each applicable Obligor. The Contractual Dilution Reserve shall be calculated by the Master Servicer, on behalf of the Seller, in the ordinary course based on the Contractual Dilution then expected to occur with respect to the then outstanding Pool Receivables as reasonably determined by the Master Servicer. Additionally, the Master Servicer shall deliver such other information and reports reasonably requested by the Administrative Agent with respect to the Contractual Dilution Reserve, including a comparison of the Contractual Dilution Reserve to the actual Contractual Dilution with respect to prior Calculation Periods, in form and substance reasonably satisfactory to the Administrative Agent.

“Dilution Spike Factor” means, for any calendar month, the product of # the positive difference, if any, between: # the highest Dilution Ratio for any calendar month during the twelve (12) most recent calendar months and # the arithmetic average of the Dilution Ratios for such twelve (12) months and (b) (i) the highest Dilution Ratio for any calendar month during the twelve (12) most recent calendar months, divided by # the arithmetic average of the Dilution Ratios for such twelve months.

“Dilution Trigger Ratio” shall mean, as of any date of determination, the ratio (expressed as a percentage) of:

“Dilution Ratio” shall mean, subject to Section 2(e), as of any date of determination, the ratio (expressed as a percentage) of:

“Dilution Ratio” shall mean, for any relevant period of determination (as selected by the Administrative Agent in its reasonable judgment), the amount (expressed as a percentage) equal to # the aggregate amount of the applicable Dilution Factors for such period with respect to the relevant Accounts divided by # the aggregate amount of sales comprising such relevant Accounts for such period. The Dilution Ratio shall be determined separately for Eligible Wholesale Receivables.

“Dilution Volatility Ratio” means, on any day, a percentage determined as follows:

“Dilution Volatility Component” means, at any time, the product (expressed as a percentage) of # the difference between # the highest three-month rolling average Dilution Ratio over the 12-month period then most recently ended and # the Adjusted Dilution Ratio, and # a fraction, the numerator of which is equal to the amount calculated in (i)(a) of this definition and the denominator of which is equal to the amount calculated in (i)(b) of this definition.