Credit Calculation. 4.1 The actual hourly Airframe Direct Maintenance Cost (ADMC) shall be compared by ▇▇▇▇ against the ADMCG on an annual basis. 4.2 If the ADMC exceeds the ADMCG by more than ten percent (10%) Buyer's balance account will be credited with a compensation credit calculated in accordance with the formula in Article 4.3. Qb = 0.6 (ADMC-ADMCG) T where: Qb = Buyer's compensation credit in dollars when Qb is positive, ADMC = The average of the ADMC values on an annual basis, G = Airframe Direct Maintenance Cost Guarantee, T = As per 3.4 4.3 If the ADMC is less than the ADMCG, ▇▇▇▇ shall accrue an incentive credit which shall be used as an offset against any potential liabilities of ▇▇▇▇ during the term of this ADMCG in accordance with the following formula: Qs = 0.4 (ADMCG - ADMC) T where: Qs = BRAD's incentive credit in dollars when Qs is positive. ADMC, ADMCG and T shall have the same meaning as used in Article 4.2 above.
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Sources: Purchase Agreement (Midway Airlines Corp), Purchase Agreement (Midway Airlines Corp)