COLLECTION MATTERS. ORDER OF ALLOCATION — In the event collection procedures are instituted to recover wages and fringe benefit payments due pursuant to this Agreement and the sums collected are not sufficient to cover all delinquent obligations, sums collected shall be distributed in the following order of priority:
COLLECTION MATTERS. Upon Closing, NEWCO shall have established an account with Xxxxx Fargo Bank N.A. (“Bank”) and will cause all payments on accounts receivable of the Business to be sent directly to a lock box owned by the Company and provided by Bank and will instruct Bank that all such funds be deposited in an account of the Company. The Company will, after deducting any and all amounts due to it under the Note and any other agreements with NEWCO, transfer all remaining funds to NEWCO’s account with Bank. The Company shall have the absolute right to retain control of this collection apparatus in the event that NEWCO fails to timely make any payment owed to the Company under any agreement. The Company’s rights in and to such arrangement shall cease at such time as the Note is paid in full.
COLLECTION MATTERS. (i) After the Closing Date and until the Reconciliation Date, the Company shall collect the Closing Date Accounts Receivable in accordance with the Company’s normal collection processes used prior to the Closing Date. Without limiting the foregoing, during the period commencing on the Closing Date and ending on the Reconciliation Date, unless the Purchaser and the Company receive the prior written consent of the Shareholders, (A) the Company shall not terminate those employees historically responsible for the collection of the Company’s accounts receivable prior to the Closing Date (unless for Cause) and, such employees shall continue to collect the Company’s Closing Date Accounts Receivable on principally the same basis and at the same location as prior to the Closing Date, (B) except as otherwise specifically indicated by a customer, cash received by the Company from any customer shall be first applied to the oldest account receivable outstanding with such customer and (C) the Company and the Purchaser shall not intentionally take any action which would reasonably be expected to adversely affect the Company’s ability to collect the Closing Date Accounts Receivables either from the obligor or Euler Hermes under the A/R Insurance Policy (as defined below). Without limiting Section 7.5 hereof, the Company shall provide to the Shareholders’ Agent no less frequently than monthly, information regarding Closing Date Accounts Receivable which have converted and have not converted to cash during such period.
COLLECTION MATTERS. Xxxxx: None. Westshore: None.
