BAD INVENTORY Sample Clauses

BAD INVENTORY. On or before April 30, 2000, the Surviving Corporation shall determine the amount of Bad Inventory (hereinafter defined) and provide to McCann (as the representative of Seller and the shareholders of Seller) xxx determination of such amount and thereafter provide to McCann with all supporting documentation reasonably requested by McCanx xx xonnection therewith. In the event that the amount of Bad Inxxxxxxy is more than $645,000.00, the shareholders of Seller shall pay to the Surviving Corporation the difference between the amount of Bad Inventory and $600,000 pursuant to the provisions of SECTION 2.11(E) below. In the event that the amount of Bad Inventory is less than $555,000.00, the Surviving Corporation shall pay to the shareholders of Seller the difference between $600,000 and the amount of Bad Inventory pursuant to the provisions of SECTION 2.11(E) below. "BAD INVENTORY" means inventory included on the Reference Balance Sheet (including inventory which has been written off or reserved against) which, as of April 1, 2000, has not been used during the preceding 12 months or represents more than a 12- month supply based on the sale or use thereof during the preceding 12 months.
Sample 1
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Related to BAD INVENTORY

  • Inventory To the extent Inventory held for sale or lease has been produced by any Borrower, it has been and will be produced by such Borrower in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations and orders thereunder.

  • Equipment and Inventory With respect to any Equipment and/or Inventory of an Obligor, each such Obligor has exclusive possession and control of such Equipment and Inventory of such Obligor except for (i) Equipment leased by such Obligor as a lessee or (ii) Equipment or Inventory in transit with common carriers. No Inventory of an Obligor is held by a Person other than an Obligor pursuant to consignment, sale or return, sale on approval or similar arrangement.

  • Eligible Inventory As to each item of Inventory that is identified by any Borrower as Eligible Inventory in a Borrowing Base Certificate submitted to Agent, such Inventory is (a) of good and merchantable quality, free from known defects, and (b) not excluded as ineligible by virtue of one or more of the excluding criteria (other than Agent-discretionary criteria) set forth in the definition of Eligible Inventory.

  • Accounts and Inventory Each Account or item of Inventory which Borrower shall, expressly or by implication, request Lender to classify as an Eligible Account or as Eligible Inventory, respectively, shall, as of the time when such request is made, conform in all respects to the requirements of such classification as set forth in the respective definitions of "Eligible Account" and "

  • As to Equipment and Inventory The Grantor hereby agrees that it shall

  • Accounts Receivable; Inventory (a) For each Account with respect to which Advances are requested, on the date each Advance is requested and made, such Account shall be an Eligible Account.

  • Location of Equipment and Inventory All Equipment and Inventory are (i) located at the locations indicated on Schedule 4 (ii) in transit to such locations or (iii) in transit to a third party purchaser which will become obligated on a Receivable to the Debtor upon receipt. Except for Equipment and Inventory referred to in clauses (ii) and (iii) of the preceding sentence, the Debtor has exclusive possession and control of the Inventory and Equipment.

  • Physical Inventory Borrower shall conduct a physical count of the Inventory at such intervals as FINOVA requests and promptly supply FINOVA with a copy of such accounts accompanied by a report of the value (calculated at the lower of cost or market value on a first in, first out basis) of the Inventory and such additional information with respect to the Inventory as FINOVA may request from time to time.

  • Inventory and Equipment On the date hereof, the Inventory and the Equipment (other than mobile goods) are kept at the locations listed on Schedule 5.

  • Merchantable Inventory All Inventory is in all material respects of good and marketable quality, free from all material defects.

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