Common use of Collection of Accounts; Payments Clause in Contracts

Collection of Accounts; Payments. (a) Until the Agent notifies the Borrower to the contrary, the Borrower shall and shall cause LDM Canada to make collection of all Accounts and other Collateral and Guarantor Collateral for the Agent, shall and shall cause LDM Canada to receive all payments as the Agent's trustee, and shall immediately deliver all payments in their original form duly endorsed in blank into a Payment Account established for the account of the Borrower or LDM Canada, as applicable at a bank acceptable to Agent and subject to documentation acceptable to Agent. The Borrower shall and shall cause LDM Canada to establish a lock-box service for collections of Accounts at a bank acceptable to the Agent and pursuant to documentation satisfactory to the Agent. The Borrower shall and shall cause LDM Canada to instruct all Account Debtors to make all payments directly to the address established for such service. If, notwithstanding such instructions, the Borrower or LDM Canada, as applicable, receives any proceeds of Accounts, it shall receive such payments as the Agent's trustee, and shall immediately deliver such payments to the Agent in their original form duly endorsed in blank or deposit them into a Payment Account, as the Agent may direct. All collections received in any such lock-box or Payment Account or directly by the Borrower or LDM Canada, as the case may be, or the Agent, and all funds in any Payment Account or other account to which such collections are deposited shall be subject to the Agent's sole control. The Agent or the Agent's designee may, at any time, notify Account Debtors that the Accounts have been assigned to the Agent and of the Agent's security interest therein. If an Event of Default shall have occurred and be continuing, the Agent may collect the Accounts directly and charge the collection costs and expenses to the Borrower's Loan Account as a Revolving Loan. When an Event of Default exists, the Borrower, at the Agent's request, shall execute and deliver and shall cause LDM Canada to execute and deliver to the Agent such documents as the Agent shall require to grant the Agent access to any post office box in which collections of Accounts are received.

Collection of Accounts; Payments. (a) Until the Agent notifies the Borrower to the contrary, the Borrower shall and shall cause LDM Canada to make collection of all Accounts and other Collateral and Guarantor Collateral for the Agent, shall and shall cause LDM Canada to receive all payments as the Agent's trustee, and shall immediately deliver all payments in their original form duly endorsed in blank into a Payment Account established for the account of the Borrower or LDM Canada, as applicable at a bank acceptable to Agent and subject to documentation acceptable to Agent. The Borrower shall and shall cause LDM Canada to establish a lock-box service for collections of Accounts at a bank acceptable to the Agent and pursuant to documentation satisfactory to the Agent. The Borrower shall and shall cause LDM Canada to instruct all Account Debtors to make all payments directly to the address established for such service. If, notwithstanding such instructions, the Borrower or LDM Canada, as applicable, receives any proceeds of Accounts, it shall receive such payments as the Agent's trustee, and shall immediately deliver such payments to the Agent in their original form duly endorsed in blank or deposit them into a Payment Account, as the Agent may direct. All collections received in any such lock-box or Payment Account or directly by the Borrower or LDM Canada, as the case may be, or the Agent, and all funds in any Payment Account or other account to which such collections are deposited shall be subject to the Agent's sole control. The Agent or the Agent's designee may, at any time, notify Account Debtors that the Accounts have been assigned to the Agent and of the Agent's security interest therein. If an Event of Default shall have occurred and be continuing, the Agent may collect the Accounts directly and charge the collection costs and expenses to the Borrower's Loan Account as a Revolving Loan. When an Event of Default exists, the Borrower, at the Agent's request, shall execute and deliver and shall cause LDM Canada to execute and deliver to the Agent such documents as the Agent shall require to grant the Agent access to any post office box in which collections of Accounts are received. (b) If sales of Inventory are made for cash, the Borrower shall and shall cause LDM Canada to immediately deliver to the Agent or deposit into a Payment Account the identical checks, cash, or other forms of payment which the Borrower receives.

Collection of Accounts; Payments. (a) Until the Agent notifies the Borrower Borrowers to the contrary, the each Borrower shall shall, and shall cause LDM SDI Canada to to, (i) make collection of all Accounts and other Collateral of such Borrower and Guarantor Collateral SDI Canada for the Agent, shall and shall cause LDM Canada to (ii) receive all payments (but only following notice from the Agent in the case of SDI Canada) as the Agent's trustee, and shall (iii) immediately (and following notice from the Agent in the case of SDI Canada) deliver all payments in their original form duly endorsed in blank into a Payment Account established for the account of the such Borrower or LDM SDI Canada, as applicable the case may be, at a bank acceptable to Agent and subject to documentation acceptable to Agent. The If the Agent requests, such Borrower shall shall, and shall cause LDM SDI Canada to to, establish a lock-box service for collections of Accounts of such Borrower or SDI Canada, as the case may be, at a bank acceptable to the Agent and pursuant to documentation satisfactory to the Agent. The If such lock-box service is established, such Borrower shall shall, and shall cause LDM SDI Canada to to, instruct all Account Debtors to make all payments directly to the address established for such service. If, notwithstanding such instructions, the a Borrower or LDM Canada, as applicable, SDI Canada receives any proceeds of Accounts, it shall receive such payments as the Agent's trustee, and shall immediately deliver such payments to the Agent in their original form duly endorsed in blank or deposit them into a Payment AccountAccount of such Borrower or SDI Canada, as the case may be, as the Agent may direct. All collections received in any such lock-box or Payment Account or directly by the Borrower or LDM Canadaa Borrower, as the case may be, SDI Canada or the Agent, and all funds in any Payment Account or other account to which such collections are deposited shall be subject to the Agent's sole control; provided, that so long as the Agent has not provided a Payment Direction Notice to the bank at which such Payment Account is maintained, all collections received in such Payment Account shall be transferred to a disbursement account designated by such Borrower or SDI Canada, as the case may be. The Agent may, and at the direction of the Majority Lenders will, provide a Payment Direction Notice at any time that an Event of Default exists or Aggregate Availability is less than $20,000,000. The Agent or the Agent's designee may, at any timetime after the occurrence of an Event of Default, notify Account Debtors that the Accounts of a Borrower and SDI Canada have been assigned to the Agent and of the Agent's security interest therein. If an Event of Default shall have occurred , and be continuing, the Agent may collect the Accounts them directly and charge the collection costs and expenses to such Borrower's, and in the Borrowercase of SDI Canada's Accounts, ISA's, Loan Account as a Revolving Loan. When So long as an Event of Default existshas occurred and is continuing, the each Borrower, at the Agent's request, shall execute and deliver shall, and shall cause LDM SDI Canada to to, execute and deliver to the Agent such documents as the Agent shall require to grant the Agent access to any post office box in which collections of Accounts of such Borrower or SDI Canada are received.

Collection of Accounts; Payments. (a) Until the Agent notifies the Borrower to the contrary, the Borrower shall shall, and shall cause LDM SDI Canada to to, (i) make collection of all Accounts and other Collateral of the Borrower and Guarantor Collateral SDI Canada for the Agent, shall and shall cause LDM Canada to (ii) receive all payments (but only following notice from the Agent in the case of SDI Canada) as the Agent's trustee, and shall (iii) immediately (and following notice from the Agent in the case of SDI Canada) deliver all payments in their original form duly endorsed in blank into a Payment Account established for the account of the Borrower or LDM SDI Canada, as applicable the case may be, at a bank acceptable to Agent and subject to documentation acceptable to Agent. The If the Agent requests, the Borrower shall shall, and shall cause LDM SDI Canada to to, establish a lock-box service for collections of Accounts of the Borrower or SDI Canada, as the case may be, at a bank acceptable to the Agent and pursuant to documentation satisfactory to the Agent. The If such lock-box service is established, the Borrower shall shall, and shall cause LDM SDI Canada to to, instruct all Account Debtors to make all payments directly to the address established for such service. If, notwithstanding such instructions, the Borrower or LDM Canada, as applicable, SDI Canada receives any proceeds of Accounts, it shall receive such payments as the Agent's trustee, and shall immediately deliver such payments to the Agent in their original form duly endorsed in blank or deposit them into a Payment AccountAccount of the Borrower or SDI Canada, as the case may be, as the Agent may direct. All collections received in any such lock-box or Payment Account or directly by the Borrower or LDM CanadaBorrower, as the case may be, SDI Canada or the Agent, and all funds in any Payment Account or other account to which such collections are deposited shall be subject to the Agent's sole control; PROVIDED, that so long as the Agent has not provided a Payment Direction Notice to the bank at which such Payment Account is maintained, all collections received in such Payment Account shall be transferred to a disbursement account designated by the Borrower or SDI Canada, as the case may be. The Agent may, and at the direction of the Majority Lenders will, provide a Payment Direction Notice at any time that an Event of Default exists or the Borrower's Availability is less than $20,000,000. The Agent or the Agent's designee may, at any timetime after the occurrence of an Event of Default, notify Account Debtors that the Accounts of the Borrower and SDI Canada have been assigned to the Agent and of the Agent's security interest therein. If an Event of Default shall have occurred , and be continuing, the Agent may collect the Accounts them directly and charge the collection costs and expenses to the Borrower's Loan Account as a Revolving Loan. When So long as an Event of Default existshas occurred and is continuing, the Borrower, at the Agent's request, shall execute and deliver shall, and shall cause LDM SDI Canada to to, execute and deliver to the Agent such documents as the Agent shall require to grant the Agent access to any post office box in which collections of Accounts of the Borrower or SDI Canada are received.

Collection of Accounts; Payments. (a) Until the Agent Lender notifies the Borrower to the contrary, the Borrower shall, and at the request of the Lender at any time Availability is less than $2,000,000 or any other time as the Lender in its sole discretion shall and determine, shall cause LDM Paradyne Canada to to: (i) make collection of all Accounts and other Collateral and Guarantor or Canadian Collateral for the AgentLender, shall and shall cause LDM Canada to (ii) receive all payments as the AgentLender's trustee, and shall (iii) immediately deliver all payments to the Lender in their original form duly endorsed in blank or deposit them into a Payment Account established for at the account of Lender's request, as the Lender may direct. If the Lender requests, the Borrower or LDM Canadashall, as applicable at a bank acceptable to Agent and subject to documentation acceptable to Agent. The Borrower shall and shall cause LDM Paradyne Canada to to, establish a lock-box service for collections of Accounts at a bank or banks mutually acceptable to the Agent Lender and the Borrower and pursuant to documentation satisfactory to the AgentLender. The If such lock-box service is established, the Borrower shall instruct, and to the extent provided for in the documentation relating to Paradyne Canada Accounts shall cause LDM Paradyne Canada to instruct instruct, all Account Debtors to make all payments directly to the address established for such service. If, notwithstanding such instructions, the Borrower or LDM Canada, as applicable, Paradyne Canada receives any proceeds Proceeds of Accounts, it shall 36 44 receive such payments as the AgentLender's trustee, and shall immediately deliver such payments to the Agent Lender in their original form duly endorsed in blank or deposit them into a Payment Account, as and to the Agent extent that the Lender may direct. All collections of Accounts and other Collateral or Canadian Collateral received in any such lock-lock box or Payment Account or directly by the Borrower or LDM Canada, Paradyne Canada (as the case may be, ) or the AgentLender, and all funds in any Payment Account or other account to which such collections are deposited deposited, shall be the sole property to the Lender and subject to the AgentLender's sole control. The Agent Lender or the AgentLender's designee may, at any time, notify Account Debtors obligors that the Accounts have been assigned to the Agent Lender and of the Agent's security interest Security Interest or the Canadian Security Interest therein. If an Event of Default shall have occurred , and be continuing, the Agent may collect the Accounts them directly and charge the collection costs and expenses to the Borrower's Loan Account loan account as a Revolving Loan. When an Event of Default exists, At the Borrower, at the AgentLender's request, the Borrower shall execute and deliver deliver, and shall cause LDM Paradyne Canada to execute and deliver deliver, to the Agent Lender such documents as the Agent lender shall require to grant the Agent Lender access to any post office box in which collections of Accounts are received.