Common use of DILUTION OF ACCOUNTS Clause in Contracts

DILUTION OF ACCOUNTS. In the event that Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts collectable by Debtor is reduced or diluted as a result of discounts or rebates granted by Debtor to the respective Account Debtor(s), returned or rejected Inventory or services, or such other reasons or factors as Bank deems applicable, Bank may, in its sole discretion, upon five (5) business days' prior written notice to Debtor, reduce or otherwise modify the percentage of Eligible Accounts included within the Advance Formula under paragraph 2(a) above and/or reduce the dollar amount of Debtor's Eligible Accounts by an amount determined by Bank in its sole discretion.

Appears in 3 contracts

Samples: Credit Agreement (Sagamore Holdings Inc), Advance Formula Agreement (Sagamore Holdings Inc), Advance Formula Agreement (Arcadia Resources, Inc)

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DILUTION OF ACCOUNTS. In the event that Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts collectable by Debtor is reduced or diluted as a result of discounts or rebates granted by Debtor to the respective Account Debtor(s), returned or rejected Inventory or services, or such other reasons or factors as Bank deems applicable, Bank may, in its sole discretion, upon five (5) business days' prior written notice to Debtor, reduce or otherwise modify the percentage of Eligible Accounts included within the Advance Formula under paragraph Section 2(a) above and/or reduce the dollar amount of Debtor's ’s Eligible Accounts by an amount determined by Bank in its sole discretion.

Appears in 3 contracts

Samples: Advance Formula Agreement (Perceptron Inc/Mi), Advance Formula Agreement (Perceptron Inc/Mi), Advance Formula Agreement (Perceptron Inc/Mi)

DILUTION OF ACCOUNTS. In the event that Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts collectable by Debtor is reduced or diluted as a result of discounts or rebates granted by Debtor to the respective Account Debtor(s), returned or rejected Inventory or services, or such other reasons or factors as Bank deems applicable, Bank may, in its sole discretion, upon five (5) business days' prior written notice to Debtor, reduce or otherwise modify the percentage of Eligible Accounts included within the Advance Formula under paragraph 2(a) above and/or reduce the dollar amount of Debtor's ’s Eligible Accounts by an amount determined by Bank in its sole discretion.

Appears in 3 contracts

Samples: Advance Formula Agreement, Advance Formula Agreement (Veri-Tek International, Corp.), Advance Formula Agreement (Manitex International, Inc.)

DILUTION OF ACCOUNTS. In the event that the Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts collectable by Debtor Borrower is reduced or diluted as a result of discounts or rebates granted by Debtor Borrower to the respective Account Debtor(s), returned or rejected Inventory inventory or services, or such other reasons reason or factors factor as Bank deems applicable, Bank may, in its sole discretion, upon five (5) business days' prior written notice to DebtorBorrower, reduce or otherwise other wise modify the percentage of Eligible Accounts included within the Advance Formula under paragraph 2(a) 2 above and/or reduce the dollar amount of DebtorBorrower's Eligible Accounts by an amount determined by Bank in its sole discretion.

Appears in 1 contract

Samples: Silicon Laboratories Inc

DILUTION OF ACCOUNTS. In the event that the Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts collectable by a Debtor is reduced or diluted as a result of discounts or rebates granted by a Debtor to the respective Account Debtor(s)Debtor, returned or rejected Inventory or services, or such other reasons reason or factors factor as Bank deems applicable, Bank may, in its sole discretion, upon five (5) business days' prior written notice to DebtorBorrower, reduce or otherwise modify the percentage of Eligible Accounts included within the Advance Formula Borrowing Base under paragraph 2(a) above and/or reduce the dollar amount of the applicable Debtor's Eligible Accounts by an amount determined by Bank in its sole discretion.

Appears in 1 contract

Samples: Revolving Credit Loan Agreement (Thomas Group Inc)

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DILUTION OF ACCOUNTS. In the event that the Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts collectable by a Debtor is reduced or diluted as a result of discounts or rebates granted by a Debtor to the respective Account Debtor(s)Debtor, returned or rejected Inventory or services, or such other reasons reason or factors factor as Bank deems applicable, Bank may, in its sole discretion, upon five (5) business days' prior written notice to DebtorBorrower, reduce or otherwise other wise modify the percentage of Eligible Accounts included within the Advance Formula under paragraph 2(a) above and/or reduce the dollar amount of the applicable Debtor's Eligible Accounts by an amount determined by Bank in its sole discretion.

Appears in 1 contract

Samples: Pledge and Control Agreement (Thomas Group Inc)

DILUTION OF ACCOUNTS. In the event that Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts collectable by Debtor is reduced or diluted as a result of discounts or rebates granted by Debtor to the respective Account Debtor(s), returned or rejected Inventory or services, or such other reasons or factors as Bank deems in a commercially reasonable manner, applicable, Bank may, in its sole discretion, upon five (5) business days' prior written notice to Debtor, reduce or otherwise modify the percentage of Eligible Accounts included within the Advance Formula under paragraph 2(a) above and/or reduce the dollar amount of Debtor's ’s Eligible Accounts by an amount determined by Bank in its sole discretion.

Appears in 1 contract

Samples: Advance Formula Agreement (Manitex International, Inc.)

DILUTION OF ACCOUNTS. In the event that the Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts collectable by a Debtor is reduced or diluted as a result of discounts or rebates granted by a Debtor to the respective Account Debtor(s), returned or rejected Inventory or services, or such other reasons reason or factors factor as Bank deems applicable, Bank may, in its sole discretion, upon five (5) business days' prior written notice to DebtorBorrower, reduce or otherwise other wise modify the percentage of Eligible Accounts included within the Advance Formula under paragraph 2(a) above and/or reduce the dollar amount of the applicable Debtor's ’s Eligible Accounts by an amount determined by Bank in its sole discretion.

Appears in 1 contract

Samples: Advance Formula Agreement (Abatix Corp)

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