Excluded Discounts definition
Excluded Discounts means discounts which result in a reduction of actual cash receipts or cash incentives granted during any year of a Customer Contract, unless the relevant Customer Contract and the discounts applicable thereunder meet each of the following requirements:
Excluded Discounts means discounts which result in a reduction of actual cash receipts or cash incentives granted during any year of a Customer Contract, unless the relevant Customer Contract and the discounts applicable thereunder meet each of the following requirements:
1.1.51.1 the aggregate amount of the cash incentives and discounts does not exceed 7.5% of the amount of the cash payments to be made to the Restricted Group during the term of the relevant Customer Contract (and for greater certainty, only the portion of the discount or cash incentive in excess of the aforesaid 7.5% will be an Excluded Discount to be deducted from the EBITDA of the Borrower, the EBITDA of the Restricted Group, or the EBITDAR of the Restricted Group);
1.1.51.2 in the case of a discount incentive, the amount of the applicable associated deferred credit shall be treated as Debt but only for the purpose of the calculation of all applicable financial covenants set out in Section 12.11 hereof and not for the purposes of Section 13.6;
1.1.51.3 the amount of the discount must be fully received by the customer during a period equal to the first 20% of the life of the Customer Contract, not exceeding 2 years; and
1.1.51.4 the Customer Contract must provide that the unamortized portion of any such discount (calculated on a straight-line basis over the life of the Customer Contract) shall be repaid in the event of the premature termination of the Customer Contract;